Unavoidable Factors When Trying to Gain Eligibility for an SBA Loan
Unavoidable Factors When Trying to Gain Eligibility for an SBA Loan
Below is a discussion on some of the pivotal factors in qualifying for the SBA small business loans.
Down Payment
In case you are about to use the SBA loan to purchase another business, you will have to provide a minimum of 10% as down payment over credit-based financing. This is because you will have to show that you have the required assets to complete payments on time.
Profitability
If you have a profitable business, you will have an easy time acquiring SBA loans. SBA mainly asks for two years of profitability. Profitable businesses tend to have the best chances of qualifying for SBA loans. Specifically, the SBA generally requires two consecutive years of profitability from requesters.
Good Standing
To acquire an SBA loan, you will have to demonstrate that you have no defaults on government debts or any delinquencies in the past.
Specific Requirements for the 7(a) Loan Program
For 7(a) Loan Program, you have to be a for-profit business operating in the country and should have invested in your business using your own assets. Besides, you have to prove that you have a valid plan with the SBA funds.
