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Is My Business Eligible for a Small Business Loan (SBA)? | 504 Capital

Is My Business Eligible for a Small Business Loan (SBA)?

SBA Loan Application

Is My Business Eligible for a Small Business Loan (SBA)?

Being a successful small business owner means finding as many resources as you can so your enterprise can reach its full potential. A loan from the Small Business Administration (SBA) could be exactly what you need. These loans can offer lower interest rates, longer repayment terms, and manageable fees. If you’re researching small business loans in Virginia or small business financing in Maryland and North Carolina, 504 Capital Corporation is the perfect partner to navigate the process.

What is the Small Business Administration?

The Small Business Administration (SBA) is a federal agency whose sole purpose is to act as a resource for small businesses needing financial assistance. The SBA offers a variety of low-interest long-term small business financing loans tailored to specific needs. The most popular options are the SBA 7(a), the SBA 504, and the SBA Express.

What Should I Know About Each SBA Loan?

The SBA 7(a) is one kind of small business loan, with highly competitive rates and a long loan time. It also allows greater flexibility in what you can use the funds for.

SBA Express Loans are an option when you need to expedite the approval process. Reviews are completed within 36 hours and can finance up to $350,000.

SBA 504 Loans fund specific projects, like buying an existing building, purchasing land, updating parking lots or landscaping, or acquiring new machinery. Each loan is distributed among the applicant, a private lender, and a Certified Development Company (CDC), CDCs are not the same thing as the SBA; rather, they are nonprofits established by the SBA to support local economic growth. An SBA 504 loan can cover up to 90% of your project costs.

How to Find Out if I’m Eligible

No matter what type of small business loan you apply for, here are some standard eligibility requirements to keep in mind:

  • Business operations – your business must be for-profit and operating in an eligible industry.
  • Location – your business must be physically located and either doing business or proposing to do business in the U.S. or its territories.
  • Investment – as the owner, you must have put equity (i.e., time or money) into the business.
  • Need for financing – you must provide proof of your need for a loan, have a specific purpose for the funds, and have previously tried to find alternative financing.
  • Size – you must be a small business as defined by the SBA. This interactive tool provides a guide to determine if you are eligible.
  • Business character – you cannot have any delinquency on existing government debts, and anyone with 20% or more ownership cannot be currently incarcerated, on probation, on parole, or a defendant in a criminal proceeding.
What Do Lenders Look At When Determining Eligibility?
  • Personal credit history
  • Business credit history
  • Time in business
  • Business finances
  • Collateral

If you decide that the SBA 504 loan best suits your needs, seek out a reputable Certified Development Company (CDC) like 504 Capital Corporation. We are a nonprofit, SBA-certified lender organization that’s been administering SBA 504 loans in Virginia and providing small business financing in D.C. Maryland, and North Carolina since 1983.

We provide assistance to small businesses by working with the applicant and a third-party lender to purchase the fixed assets your business needs to succeed. Our competitive rates have helped our clients purchase property, heavy equipment and land for over thirty years.

Contact us today at 757-623-2691 so you can get started fulfilling your small business financing goals.

Apply Now