FREQUENTLY ASKED QUESTIONS
Signature Bank is an SBA Preferred Lender with the authority to make lending decisions on behalf of the SBA, meaning the process moves more quickly. Plus, our SBA Loan Specialists are available to help you throughout the process. We know you may have questions about an SBA loan, so we’ve put together some answers to help you learn more. If you have any other questions, simply contact Teresa Harrell, Senior Vice President and Managing Director of SBA Lending. She and her team are here to make it personal.
How does the SBA program work?
A lender provides the actual loan to the borrower. The SBA guarantees a portion of the loan (between 50%-90% depending on the program) acting much like a co-signer. This helps lenders be more comfortable with a loan that they might otherwise not approve, such as a loan for a start up, or a borrower that has less collateral than a bank requires.
Why should I consider an SBA loan?
There are many reasons why an SBA guaranteed loan should be considered, including:
- Longer terms (up to 10 years for working capital; up to 25 years for real estate)
- Flexible repayment options
- Lower down payments
- Improved cash flow, so you can use your cash in your business
What types of loans are available through the SBA
The SBA offers many types of loans, catering to certain business needs, including the SBA Express Term Loan, 7(a) Regular Business Loan and 504 Development Company Loan. To learn more about the various SBA loan options.
How do I qualify for an SBA loan?
A bank would expect you to be able to repay the loan from the cash flow of the business. You must be of good character and never have been convicted of a felony. The SBA typically looks for management capability, collateral pledged and owner’s equity contribution as part of the deal. If you own 20% or more of the company, you will be required to personally guarantee the loan. There are some industries that are not eligible for an SBA loan.
What other requirements does the SBA place on borrowers?
Each SBA loan program has different requirements. Learn more about the program requirements to determine which loan would be best for your business.
How do I apply for an SBA loan?
Learn more about whether an SBA loan is an option for your business by contacting one our SBA team members .
What is an SBA Preferred Lender?
As an SBA Preferred Lender, the SBA has authorized Signature Bank to make lending decisions on their behalf. In certain situations, Loan proposals do not need to go to the SBA for approval, which means the process can move more quickly.
Approved to offer SBA loan products under SBA’s Preferred Lender Program