As a small business owner, a common challenge you might face is how to get working capital to accomplish the goals you’ve set for your business. Most business owners apply for SBA loans guaranteed by the U.S. government agency whose duty is to strengthen small businesses.
One downside with this type of loan is that it can take up to eight months to get approved. This is because banks spend a lot of time reviewing loan applications by thoroughly looking at your credit score and business plan.
However, with National Business Capital, the whole process is streamlined to 30 days. In addition, National Business Capital simplifies the procedure and makes SBA funding easier by matching you with a lender and giving you expert advice to guide you in the application process.
What Is an SBA loan?
An SBA loan, by definition, is simply a loan for small businesses that are guaranteed by the U.S. Small Business Administration (SBA), a federal government agency dedicated to helping small businesses grow. There are various types of loans tailored for small business owners. Still, SBA loans are the most sought-after, mainly because they have lower interest rates and significantly longer repayment terms.
Only those with an existing business can apply for an SBA loan. The funds you get are typically for expansion-related goals, such as getting new real estate, refinancing your mortgage agreement, or buying equipment for your business. SBA lenders provide you with the capital you need, so you don’t have to disrupt your cash flow.
Types of SBA Loans Available Through National Business Capital
You can apply for the following types of SBA loan programs with National Business Capital:
7(a) Loan
This is arguably the most sought-after type of SBA financing, mainly due to the favorable terms. With this loan, you can get up to $5,000,000 and a repayment period of up to 25 years. The funds obtained can be used for various purposes, including purchasing real estate and equipment, refinancing debt, or working capital.
CDC/504 Loan
This is a loan program meant for small businesses that want to buy or build commercial real estate. With this program, two lenders come together to fund the project: a traditional lender like a bank and a community development corporation (CDC). The bank typically covers up to 50%, the CDC 40%, and the remainder comes from the borrower, usually as a cash down payment.
To qualify for this type of loan, the business must occupy at least 51% of the commercial space, meaning you can rent out the remainder to tenants. This is one of the best financing options for businesses looking to build and own commercial real estate.
Microloan Program
The SBA Microloan program is primarily targeted toward new businesses. In this case, the maximum loan amount is $50,000, though there are lower qualifications. The average loan amount for SBA microloans is $13,000, and they have terms of up to six years.
National Business Capital SBA Loan Terms
Your primary goal when getting a loan is to get funds for your business. However, not just any loan will do. These products are usually structured differently, so you should pay attention to the terms to find the most suitable funding.
With National Business Capital, SBA loan terms include.
Interest Rates and Fees
The following is a breakdown of the current SBA loan rates:
- SBA 7(a): 5.5% – 9.75%
- SBA CDC/504: 3.63% – 3.85%
- SBA disaster loans: 4% – 8%, depending on whether you have credit elsewhere
There are also SBA fees and lender fees to be paid, depending on the SBA lender National Business Capital matches you with.
Loan Terms
You’ll generally get 10 to 25 years to repay an SBA loan. The maximum loan term for SBA loans is 10 years for working capital, and it could go up to 25 years for real estate.
Loan Amounts
Depending on your business needs and qualifications, you can borrow from $100,000 to $5,000,000. The SBA guarantees part of your loan, typically 85% for $150,000 or less and 75% of the loan for amounts higher than $150,000.
Who Is Eligible for An SBA Loan with National Business Capital?
To qualify for an SBA loan through National Business capital, you have to meet the following requirements:
- Your business must have been in operation for at least two years
- Generating $100,000 in annual gross sales
- Have a credit score of 685 and above
What Other Business Loan Types Does National Business Capital Offer?
Apart from SBA loans, National Business Capital offers different other business loan options or competitive financing options you may want to consider.
- Small Business Loans: a flexible financing term loan solution with repayment periods and monthly payments to complement the financial needs of your company; can be used to boost cash reserves, cover operating expenses, purchase equipment, weather downturns, buy inventory or supplies, expand operations or however else you see fit in your business
- $25,000 – $5 million
- 1 to 10 years
- 6 months in business
- A FICO score of 580
- At least $120,000 in revenue
- Funding time: varies by lender
- Business Lines of Credit: gives you access to cash on an as-needed basis to keep your business moving forward, and only pay interest on the amount you borrow
- $25,000 – $5 million
- Revolving
- At least one year in business
- A FICO score of 600
- Annual sales of more than $120,000
- Funding time: 24 to 48 hours
- Asset-Based Lending: leverage your company’s collateral to access capital
- 50 to 95% of your collateral
- Flexible terms
- No minimum sales, time in business, or credit score
- Assets as collateral
- Funding time: varies by lender
- Accounts Receivable Financing: get paid today for receivables that are sitting on your company’s books, even if you don’t have extensive business experience or perfect credit
- $100,000 – $25 million
- Revolving
- More than 6 months in business
- No minimum FICO score requirement
- More than $40,000 in monthly receivables
- Funding time: As soon as five days
- Purchase Order Financing: turn your purchase orders into cash to avoid cash flow problems and have the funds needed to capitalize on lucrative business opportunities
- Up to 90% of the PO ($250,000 to $25 million)
- Flexible terms
- No minimum time in business, revenue or credit score requirements
- Funding time: three to seven days
- Merchant Cash Advances: borrow from future credit and debit sales to get the capital you need now
- $25,000 – $5 million
- Flexible terms based on your needs
- 6+ months in business
- No minimum credit score requirement
- $120,000+ in annual gross sales
- Funding time: one to three days
- Franchise Financing: acquire the funds needed to open a franchise or expand to another location
- $10,000 – $5 million
- 6 months to 10 years
- 3+ months in business
- No minimum credit score requirement
- $120,000+ in annual gross sales
- Funding time: two to seven days
- Commercial Mortgage Financing: secure financing to acquire commercial real estate and start building equity
- $100,000 – $4 million
- 10 to 25 years
- 2+ years in business
- A FICO score of 620 or above
- Funding time: 30 to 90 days
- Startup Business Funding: grow your new business without depleting your cash reserves
- $10,000 – $5 million
- 6 months to 10 years
- At least 6 months in business
- $10,000 in Monthly Receivables
- Funding time: varies by lender
- eQuickment Financing: get the funds you need to purchase equipment in just 48 hours with the fastest equipment funding solution on the market
- $10,000 – $250,000
- 2 to 5 years
- Minimum FICO score of 600
- Not time in business or annual gross sales requirement (equipment financing under $75,000)
- $120,000+ in annual gross sales (equipment purchases of $75,000 or more)
- Six months or more in business (equipment purchases of $75,000 or more)
- Digital application process with no additional documentation requirements
- Funding time: 2 to 5 days
- CannaBusiness Financing: access working capital to grow your Cannabis business, whether you’re looking to purchase equipment, hire help, cover business expenses or take advantage of other opportunities
- $10,000 – $5 million
- 6 months to 10 years
- No minimum FICO score requirement
- At least one year in business
- $120,000 in annual revenue
- Funding time: 1 to 3 days
How To Apply for an SBA Loan with National Business Capital
Applying for an SBA loan is typically a lengthy and tedious process, but National Funding has a simplified process for its customers. Provided you have all the needed requirements; you can complete your application for its financing programs in three simple steps:
1. Fill Out an Online Application Form
Applying for an SBA loan through National Business Capital to get larger loan amounts with lower rates. To start the application process, you need to fill out a digital form. Have your personal and business information with you when filling out the SBA loan application form.
2. Match and Review
National Business Capital partners with over 75 lenders, so you can easily find the most suitable option. Here, you get to consult with a trusted business finance advisor who will guide you to make the right choices and advise you on getting an SBA loan. After that, you’re matched with a lender to continue the process and receive a loan application decision.
3. Get Your Funding
In as little as 45 days, you can get the funds you need for your business with the simple approval process.
