SBA Commercial Loan Approval in 3 Steps

An SBA commercial loan is a way to finance your commercial enterprise. The loans available through the SBA, or Small Business Administration, and are provided to finance both small and mid-size companies. Obtaining an SBA loan can be easy, provided you meet the requirements for the loan.

There are a few steps you can take to apply for a SBA commercial loan. The steps are similar to the steps you take when applying for loan approval from a private lender. Understand the type of commercial loan program that you are applying for and make sure you meet the loan requirements in order to eliminate and confusion or misunderstanding.

Step 1: Contact Local SBA Office

Contact your local SBA office in person for an appointment. This will give you the opportunity to review the various SBA commercial loan programs and find the one that is specific to your business needs. You can ask questions of your local SBA representative to learn about the different commercial loan programs and determine the appropriate program that fits your company needs.

The SBA representative should be able to assist you with any questions that you have about commercial loans. The individual can also guide you through the application process and, in some cases, obtain loan pre-approval for you.

Step 2: Review the Loan Requirements

You need to have a thorough understanding of the requirements for the SBA commercial loan program that you are applying for. Each program has its own set of rules and criteria for qualification.

For example, the SBA 504 program provides loans for small and mid-size businesses looking to purchase commercial property. The loans have no limit are generally available to any business provided that they meet the following requirements:

  • The company’s net income cannot be more than $3 million in the past 2 years.
  • The company’s net worth cannot exceed $8.5 million.
  • The amount needed through the commercial loan must be greater than the assets of the company.

Meeting with an SBA representative will help you determine the best program and whether you meet the qualifications.

Step 3: Apply for the Loan
The loan application can be completed online or in person and should take a few days or weeks to get approved. Provide all of the required information when completing a loan application to prevent rejections or delays.

The steps for obtaining an SBA commercial loan are easy to follow. Simply get the commercial loan program information you need, ask questions and complete the application. Once you have provided all of your documents be sure to ask about the representative for a turnaround time.