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SBA LOAN REQUIREMENTS
Learn which types of businesses can be eligible for an SBA Loan
Only takes 5 minutes and doesn't impact your credit score1
SBA Loan requirements
Many small businesses from a broad range of industries can successfully apply for an SBA 7(a) loan. Rather than listing what businesses are considered for approval, the Small Business Administration lists those industries that are excluded.
Excluded Businesses:
- Non-profits
- Financial businesses (primarily engaged in Lending)
- Passive businesses (i.e. Landlords)
- Life insurance carriers
- Businesses located in a foreign country
- Pyramid sale distribution plans
- Gambling activities
- Businesses engaging in activity that is illegal in federal, state or local law
- Private clubs
- Government owned entities
- Entities involved in SBA Loan Packaging
- Any business with an Associate who is currently incarcerated, under indictment, etc.
- Business with equity interest owned by Lender
- Business with services or products of a prurient sexual nature
- Businesses that have previously defaulted on a Federal loan or Federally assisted financing
- Primarily political and lobbying activities
- Speculative businesses (i.e. Oil wildcatting)
For the detailed list of ineligible businesses, head to the SBA's website to learn more.
SmartBiz BankSM SBA eligibility requirements
If your business does not fall under one of the excluded categories, the next step is to meet the following common eligibility requirements for an SBA loan from SmartBiz Bank or banks in the SmartBiz network.
$50,000 to $500,000 SBA 7(a) Working Capital or Debt Refinance2 from SmartBiz Bank:
- Time in business must be above two years
- The business owner's personal credit score must be above 660
- Business must be U.S. based and 51% owned by a U.S. citizen or lawful permanent resident who is at least 21-years old
- No outstanding tax liens
- No bankruptcies or foreclosures in the past 3 years
- No recent charge-offs or settlements
- Up-to-date on government-related loans
Typically, businesses approved for an SBA loan from SmartBiz Bank have $250,000 to $5 million in annual revenues and 1 to 40 employees, are profitable and have a positive cash flow. All can provide proof that they are able to make the monthly loan payment.
Learn more about SBA Loans
When it comes to SBA lending, we help you get to a ‘yes’ quickly.
We understand the SBA process so you don’t have to. Our technology and team make the application process simple and easy to navigate. After you start your application, we’ll walk you through every step and answer your questions along the way. But if you’d like to do a little research before you begin, you can learn more here:
SBA Loans overview
Start here and discover more about SBA loans and how they help small businesses.
SBA use of funds
How you can use SBA loan proceeds to save money and grow your small business.
SBA Loan approval
Learn about SBA loan guidelines and the approval process before applying to ensure a fast turnaround of your application.
SBA Loan Rates & Fees
Current interest rates, how they work, and other fees and costs associated with SBA loans.
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1. We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, SmartBiz Bank and the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may impact your credit score.
2. Subject to credit approval. Your loan amount will be determined based on many factors, including your credit and financial profile. Not all applicants will qualify for the full amount.