SBA Loans

FAQs

What does small business mean?

• A small business is typically characterized as an autonomous enterprise with less than 500 employees.

Why should you consider an SBA loan?

• SBA loans present several benefits over traditional business loans, such as reduced down payments, extended terms, complete amortization and the absence of balloon payments. SBA loans can also offer financial support for businesses that typically struggle to secure traditional financing, like restaurants, car repair shops, self-storage facilities, new franchises and assisted living facilities.

Do all banks offer identical SBA loans?

• No. The sanctioning of an SBA loan is at the discretion of the bank issuing it, and each bank has its unique lending standards. Collaborating with an SBA Preferred Lender increases your chances of securing better terms and a quicker application and closing procedure compared to a non-SBA Preferred Lender bank.

How long does it take to get an SBA loan?

• The SBA loan approval process may differ based on the specific loan program and the complexity of your application. However, we strive to streamline the process. In many cases, we can provide a loan decision within a few business days of receiving your complete application.

Can you refinance an SBA loan?

• Refinancing your existing SBA loan could potentially lower your interest rate, extend your repayment term or consolidate multiple loans into a single one. Contact a Seacoast Bank loan specialist to discuss your specific situation and explore your refinancing options.

How long are SBA loan term lengths?

• SBA loan terms vary depending on the program and the purpose of the loan. Generally, SBA 7(a) loans offer repayment terms of up to 25 years for real estate, 10 years for equipment and 10 years for working capital. SBA 504 loans typically offer even longer terms, with amortization periods of up to 25 years for qualified projects.

What is the maximum amount I can borrow with an SBA loan?

• The maximum amount you can borrow with an SBA 7(a) loan is $5 million, with flexible repayment terms up to 25 years depending on your loan.

Are there any fees associated with SBA loans?

• Yes, there are fees associated with SBA loans, including a guaranty fee and an annual service fee. The guaranty fee is a percentage of the loan amount and varies based on the loan size and term. These fees help cover the cost of the SBA’s loan programs.

What resources are available to help me prepare my SBA loan application?

• Several resources are available to help you prepare your SBA loan application, including:
  • Seacoast Bank Preferred SBA Lender: contact a loan specialist to answer any questions you may have.
  • SBA Resource Partners: Offer additional guidance and support.
  • Visit our FAQs for more resources and small business lending options.

How does an SBA Loan work?

• SBA loans are not directly issued by the government but rather by trusted lenders like Seacoast Bank, who work in partnership with the Small Business Administration (SBA) to offer loans to small businesses. We will navigate the SBA loan program to find the perfect fit for your business needs and support you through each step of the loan application process to ensure your application meets SBA requirements.

How do I apply for an SBA Loan?

• Applying for an SBA loan at Seacoast Bank is straightforward. Here’s what to expect:
  • Contact us - Our friendly loan specialists are happy to discuss your needs and answer any questions you may have.
  • Gather documents - We’ll guide you through the required documentation to streamline the application process.
  • Submit your application - Our online application is quick and easy to navigate.
  • Seamless support - We’ll handle the legwork and keep you informed throughout the process.

How do I qualify for an SBA loan?

• The general SBA eligibility requirements to help you determine if you qualify include:
  • Be a US-based, For-profit business - Your business must be physically located and operating in the United States with a for-profit structure.
  • Meet SBA’s size standards - The SBA defines size standards for various industries. You can find these details on the SBA website, or we can help you navigate them.
  • Clean credit history - A history of on-time payments on existing obligations demonstrates your creditworthiness.
  • U.S. Citizen or Permanent Resident Ownership - At least 51% of your business must be owned by a U.S. citizen or legal permanent resident.

What are the approved uses of an SBA Loan?

• There are numerous uses for an SBA loan. Some examples include:
  • Purchasing or refinancing commercial real estate
  • Equipment financing
  • Debt refinancing
  • Building improvements
  • Business acquisitions
  • Partner buyouts
  • Construction
  • Inventory purchases
  • Working capital

What is Small Business Administration (SBA) Lending?

• SBA loans are a powerful financial tool specifically designed to fuel the growth and success of small businesses. SBA loans are partially guaranteed by the Small Business Administration (SBA), a government agency dedicated to supporting entrepreneurs.

  This guarantee makes SBA loans more attractive to lenders, allowing them to offer you:

  • Favorable loan terms - SBA loans often come with lower interest rates and longer repayment periods compared to traditional business loans. This translates to more manageable monthly payments and frees up valuable cash flow for you to invest in your business.
  • Reduced risk for lenders - The SBA’s partial guarantee reduces the risk for lenders, allowing us to offer SBA loans to a wider range of qualified businesses. This means even if you’re a startup or a young company, you may still be eligible for an SBA loan.
  • Access to larger loan amounts - SBA loans can provide larger sums of money compared to many traditional business loans. This allows you to make significant investments in your business, like purchasing commercial real estate, acquiring new equipment or expanding your inventory.