Small Business Administration (SBA) Loans

Only for-profit, US-based small businesses qualify for SBA loans. Additionally, your personal credit score must be a minimum of 620. As the business owner, you must provide a personal guarantee for the SBA loan.

Additional factors that will impact the likelihood of you qualifying for an SBA loan include:

• Whether your business has at least two years of operating experience
• Your company’s overall financial health, verified through balance sheets, tax returns, and similar documents
• The specifics of your business plans and the intended use for the SBA loan funds

We recommend bringing the following to a meeting with one of our business loan specialists:

• Your business plan, the more detailed, the better—this enables us to assess which SBA loan may best serve your objectives
• Profit and loss statements
• Company balance sheets
• Past tax returns for both yourself and your company
• Any relevant licenses or permits
• Disclosure of any outstanding debt
• Documented collateral

Because Bank of Hope is an SBA preferred lender, we’re pre-authorized to make decisions on behalf of the Small Business Administration without their direct involvement. In turn, we can act swiftly to deliver the funding you need.

Some SBA loan requests are more complex than others, requiring varying levels of analysis and due diligence. However, we aim to complete the process within a few weeks from the initial SBA loan application.

SBA 7(a) loan recipients are provided with ample flexibility in regard to the use of funds, including the opportunity to pay off other debts specific to their small business.

The goal of the Small Business Administration and preferred lenders (like Bank of Hope) is to foster the growth of small businesses. Therefore, none of the SBA loans can be used for personal purposes. Nor can they be used for political gains or contributions, paying-off government fines, or purchasing high-risk investments.

The amount which the government guarantees varies from one loan to the next, as well as the specific amount borrowed. For example, an SBA 7(a) Loan of $150,000 or less would be 85% guaranteed, while SBA 7(a) loans that are higher would be 75% guaranteed.

For more information, visit our designated pages for SBA 7(a) Loans,  SBA 504 Loans, SBA Export Working Capital Program (EWCP), and SBA Small Loans.

We invite you to view pages dedicated to SBA 7(a) Loans, SBA 504 Loans, SBA Export Working Capital Program (EWCP), and SBA Small Loans to learn more about the particulars of each. Plus, for more guidance, you could read our article about the pros and cons of business loans.

However, the good news is that you don’t have to navigate the complex world of business financing alone. Schedule an appointment to talk with a small business financial expert who can help you determine the optimal path.