Ask the Experts: An SBA Loan Q&A

Oct 9, 2020 | Business, Core Bank, Kansas City, Omaha, SBA

Core Bank team members

Who qualifies for an SBA loan?
The vast majority of businesses are eligible for financial assistance from the Small Business Administration. Your business must operate for profit and not be a passive investment. The business must operate in the United States or its territories. The owners must have reasonable equity to invest. Lastly, the business must meet the SBA’s size standards. The size standard test is usually determined by number of employees and/or average annual revenues. The definition of “small” varies by industry.

What are SBA loans used for?
There are several different programs within the SBA, all of which encompass the following use of proceeds:

  1. Purchase Commercial Real Estate
  2. Acquire a Business/ Start a Business
  3. Franchise Financing
  4. Refinance/Consolidate Existing Debt
  5. Business Expansion
  6. Purchase Equipment, furniture, and(or) fixtures
  7. Tenant Improvements
  8. Partner Buyout
  9. Working Capital

There are many different structures that may add value to your business. The SBA is designed to provide solutions and capital to small businesses that do not qualify for conventional commercial financing.

What are the benefits of the SBA program and how long does it take to obtain financing?
There are many benefits to the SBA program. The SBA provides financing for companies in all stages of the business cycle, whether your business is a start-up with no historical financial performance, your business is expanding, or if you are ready to exit your business. The standard operating procedure of the SBA provides flexibility to small business owners so their goals and aspirations are obtained.

The time it takes to obtain an SBA loan is largely dependent upon how quickly the necessary information and documentation is obtained. There is also great value added when working with a preferred lender like Core Bank that understands the program and all that it entails. Being a preferred lender allows us to make decisions on behalf of the SBA. The average time frame from start to finish to obtain financing is 45-60 days.

For more information please visit and reach out to any of our SBA experts.