SBA or Commercial Loan Requirements
The business requirements for a commercial loan or SBA 7a Loan are fairly straightforward, and many businesses that have been operating for at least 2 years will qualify. Your business and financial standing will determine how much you can borrow and the exact rates and terms. SMB Lender specializes in helping small to mid-sized businesses get funding with diverse financing options.
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What Do You Need To Qualify for Commerical Loans?
At SMB Lender, we help small businesses navigate the commercial loans application process. To qualify, businesses typically need to meet the following requirements:
- Operate as a for-profit business in the U.S. (Certain industries, such as real estate investment firms, religious organizations, and gambling businesses, are ineligible.)
- Be in business for a minimum of 6 months to 1 year (some lenders require less, some more).
- Demonstrate creditworthiness and the ability to repay the loan.
- Annual revenue above $500K (however, smaller businesses may still qualify)
- Be current on all loans (no delinquencies).
- Credit score above 550 Fico Score.
What Do You Need To Qualify for SBA 7a Loans?
ATo qualify for SBA loans, businesses typically need to meet the following requirements:
- Operate as a for-profit business in the U.S. (Certain industries, such as real estate investment firms, religious organizations, and gambling businesses, are ineligible.)
- Meet the SBA’s size standards for a small business.
- Demonstrate creditworthiness and the ability to repay the loan.
- Exhaust other financing options before applying for an SBA loan.
- Show a clear business need and how the loan will be used.
- Be current on all government loans (no delinquencies).
- Provide collateral for loans over $50,000.
- Owners with 20% or more ownership must provide a personal guarantee.
While the SBA doesn’t set specific minimums for creditworthiness, lenders typically look for:
- A strong personal credit score (minimum 640, 690+ recommended)
- Solid annual revenue
- At least two years in business
If you meet these criteria, a commercial loan or a SBA 7(a) loan could be the perfect financing solution to grow your business. Contact us today to get started!