SBA Commercial Real Estate Loan

A Guide to the Best Options

SBA loans are small-business loans partially guaranteed by the U.S. Small Business Administration and issued by ADM Financial Group A Commercial Mortgage Company. SBA loans have tight lending standards, but their flexible terms and low-interest rates can make them one of the best ways to finance a business. Here’s what you need to know about SBA loans, how to apply for one, and how to maximize your chances of approval.

What you should know about an SBA loan

An SBA loan is a government small-business loan that can help cover startup costs, expansions, real estate purchases and more. This type of financing is issued by our company as a private lender but backed by the federal government.

The requirement you need to qualify for an SBA loan

There are multiple types of SBA loans – each with its own terms and conditions. The best SBA loan for you will depend on what you plan to use the funding for.

Here are some of the requirements you will need before applying:
*Acceptable personal and business credit
*For-profit business status
*U.S.-based location and operations
*Owner-supported and funded
*Exhausted other funding options
*Meet SBA size standards
*Be in an SBA-acceptable industry
*Owned by an eligible person

SBA Loan Types Overview

Because the Small Business Administration offers a variety of loan programs, each may have its own set of requirements. The list for each program is very long and spelled out in Standard Operating Procedures. Here’s a breakdown of each of the most popular SBA loan types.

Program: SBA 7(a) Loans
Loan size: Up to $5 million.
Purpose: Working capital, expansion, and equipment purchases.

Program: SBA Express Loans
Loan size: Up to $500,000.
Purpose: Fast funding for working capital, expansion, and real estate and equipment purchases.

Program: SBA 504 Loans
Loan size: Up to $5.5 million.
Purpose: Purchase long-term, fixed assets like land, machinery, and facilities.

Program: SBA Microloans
Loan size: Up to $50,000.
Purpose: Working capital, inventory, supplies, equipment, and machinery.

Program: SBA Disaster Loans
Loan size: Up to $2 million.
Purpose: Repair physical damage due to a declared disaster and cover operating expenses.

Program: SBA Community Advantage loans
Loan size: Up to $250,000.
Purpose: Normal business purposes; cannot be used for revolving credit.

Program: SBA Export Working Capital loans
Loan Size: Up to $5 million.
Purpose: Working capital to support export sales.

Program: SBA International Trade loans
Loan: Up to $5 million.
Purpose: Long-term funding to expand export sales or modernize to contend with foreign competitors.

The SBA also offers funding through lines of credit, small-business grants, and loan programs for veterans.

How to apply for an SBA loan

1. Make sure your business is eligible
To qualify for an SBA loan, we typically like to see at least two years in business, strong annual revenue and a good or blemish credit score, which starts around 600.

NOTE: If your business is struggling, an SBA loan is probably out of the question. And if it falls into any of the ineligible categories, such as charitable and religious institutions, you shouldn’t apply.

2. Gather your application documents
If you think you qualify, the best place to start is through our licensed company’s website, which includes a loan application checklist. Use this to gather your documents, including your tax returns and business records.

Here are some of the documents you will need before applying

*SBA’s borrower information form.
*Statement of personal history.
*Personal financial statement.
*Personal income tax returns.
*Business tax returns.
*Business license.
*Lease agreement if applicable.
*One-year cash flow projection.

To learn more about SBA loan requirements and see if you’ll qualify, kindly fill out the form below one of our staff will contact you within 24 hours.