An SBA loan is a type of financing partially guaranteed (insured) by the Small Business Administration, offered through approved lenders like banks, credit unions and non-bank lenders. SBA loans typically provide longer repayment terms, lower down payments, and are generally less restrictive than conventional commercial loans. Reach out to ComCap, Inc if you're interested in an SBA loan or are looking for consultation after you've had your SBA loan declined.

According to Lending Tree, the average SBA loan per company in 2024 was $443,096. They are versatile loans and can be used for various business purposes, including:

• Starting a business
• Acquiring another business
• Expanding operations
• Moving or building a new site or facility
• Purchasing equipment
• Buying commercial real estate
• Refinancing existing debt

If you're looking for a loan or need help with an SBA loan denial, reach out to ComCap, Inc today!

While requirements may vary, businesses typically need the following:

• To operate for profit in the United States
• Have reasonable owner equity to invest
• Exhibit good or above-average credit
• Craft a solid business plan
• Show sufficient post-close liquidity
• Exhaust alternative financial resources (before applying for an SBA Loan)

Make sure you prioritize each of these requirements or you may face an SBA loan denial.

In our experience, the most common types are:

• SBA 7(a) loans (for general business purposes)
• SBA 504 loans (for major fixed assets)
• SBA express loans and lines of credit (for smaller financing needs)

To learn more about these types of SBA loans or for consultation after your SBA loan declined, reach out to the experts at ComCap, Inc today.

Interest rates on SBA loans are typically based on the prime rate plus a margin chosen by the bank/lender (additional percentage), which can vary depending on the loan type and loan amount (express loans often have higher margins than 7(a) loans for example). We've found that the average margin on a 7(a) is typically between 1% to 2.75%. Reach out to ComCap, Inc today to learn more about what interest rates you can expect or to get help with an SBA loan denial.

The timeline can vary depending on the loan type and lender. Some loans are approved and funded within a few weeks, while others might take several months. 

The length of the loan process depends on the complexity of the loan, the quality and speed of the loan documents provided by the borrower, and the efficiencies of the bank/lender. If you run into an SBA loan denial, you can come to the experts at ComCap, Inc for a consultation.

Before applying for an SBA loan, it's crucial to have all the right documents in order. Without the right documentation, you may run into an SBA loan denial. Here's what you should prioritize:

• Business plan
• Business and personal tax returns
• Business and personal bank statements
• Prior year’s financials (P&L and balance sheet)
• YTD financial statements (Including cash flow projections)
• Driver's license
• 24 months projections and assumptions
• Resume
• Legal entity documents
• Business debt schedule
• Business asset list
• Use of funds schedule
• YTD accounts receivable/payable report

Yes, SBA loans typically feature a guarantee fee. We've found that most banks and lenders also charge a loan packaging fee (typically $2,000). However, as of September 30, 2024, the SBA is waiving the guarantee fee on loans of $1 million or less. To learn more about which fees you can expect or to get help with an SBA loan denial, call the experts at ComCap, Inc today.

The maximum amount varies by loan program. For example, we've found that 7(a) loans can go up to $5 million, while SBA express loans are capped at $350,000. Some banks and lenders often combine SBA and conventional financing to provide loans over the $5 million cap. This type of structure is called a Pari Passu. To learn more about how much you can loan or to receive consultation on an SBA loan denial, call us today.

If a borrower defaults on an SBA loan, the lender will first attempt to recover the funds through alternative payment plans or asset liquidation. If a portion remains unpaid, we've found the SBA covers a percentage (typically 75%) of the shortfall, with the bank responsible for the remainder. Reach out to ComCap, Inc today to learn more or to get helpful consultation on your SBA loan denial.