Knowing the Requirements of the Lender to Qualify for an SBA Loan
Having a clear picture of the minimum qualifying requirements put forward by a lender would increase your chances of getting approved to receive their product. Many lenders are willing to provide you assistance if you are performing well in one area but are under-performing in another. Remember that the best chances of your approval rest in exceeding all the minimum requirements.
Borrowers usually have to fulfill the minimum criteria with regard to their credit scores, years in business, and annual revenue. Aside from that, lenders are rarely pleased by past financial issues and recent bankruptcies.
If you are wondering who qualifies for SBA loans, here is your answer: to acquire loans offered by the U.S. Small Business Administration, you would have to fulfill additional SBA loan requirements. This means your business should fulfill the size standards set by SBA because these loans are made available to small businesses. Furthermore, borrowers need to have good personal credit and business revenue. There should also be no business revenue on government loans, which means that if you have been late on paying back a government-backed mortgage or a federal student loan, you will not qualify for SBA loans. The business you run must also not land on the SBA’s ineligible list.