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Quiz indicates whether you might qualify for an SBA construction or renovation loan
Posted in: Building Dimensions Blog
When it’s time to renovate or improve your commercial property, it’s important to explore all financing options. With a Small Business Administration or SBA loan, business owners can secure a government-guaranteed business loan that is both long-term and at a low rate, if they qualify. The result is low monthly payments, an attractive option for most business owners. Lenders, meanwhile, have incentive under the program to take on more risk, which frees up financing for small business owners who might not be eligible for other options.
The process is competitive, but if approved, business owners can use the funds to purchase real estate or equipment, refinance debt or buy inventory.
So the obvious question is, do you qualify? Take this quiz to find out.
Quiz: Might you qualify for an SBA construction or renovation loan?
Is your business based in the United States?
Is your business for-profit?
By all indications in your industry, would your company be considered a small business, either by employee numbers or business revenue?
Is your business net worth less than $15 million or does your business net less than $5 million in annual income?
Is your personal credit score above 700?
How are your business financials?
Do you have adequate collateral, such as real estate, inventory or equipment?
Are you willing to sign a personal guarantee?
Is your business involved in lending, political or lobbying efforts, life insurance, gambling, speculative industries or passive income?
Have you personally been convicted of a felony involving violence or dishonesty?
Are you a citizen of the United States?
Do you have a business plan detailing your product, competitive analysis, marketing strategy, financial statements/projections & use of loan proceeds?
Have you been in business for two years or more?
Can you supply a balance sheet including liabilities and accounts receivables?
Can you provide a strong profit & loss statement, also known as an income statement?
There’s work to do
Based on your answers, you may not be ready to apply for an SBA loan. Work on your business plan, your financials and even your personal credit score, and in time your odds can improve. Remember that your business must qualify as a small business in your industry, must be based in the United States and must be for-profit. If your business is not a fit for these requirements, SBA loans are likely not for you, so you may want to explore other financing options.
You might qualify
Based on your answers to this quiz, it’s possible you could qualify for an SBA Loan. Do your research and invest time and energy into making sure you check all the boxes before taking time to apply for the loan. The extra effort you put into the process will increase your odds of finding a lender who is ready to help you with financing.
Odds are good
Based on your answers, it looks like you may be a contender for an SBA Loan! Keep in mind you’ll want to have a solid personal credit score and excellent character, good business financials and a solid business plan. Get ready to prove that your business is among the best, and lenders are likely to take notice.
