SBA LOAN REQUIREMENTS

Learn which types of businesses can be eligible for an SBA Loan

See if you pre-qualify

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SBA Loan requirements

Many small businesses from a broad range of industries can successfully apply for an SBA 7(a) loan. Rather than listing what businesses are considered for approval, the Small Business Administration lists those industries that are excluded.

Excluded Businesses:

Commonly Ineligible Business Types	Additional Ineligibility Examples
Non-profits Financial businesses primarily engaged in lending Passive businesses (for example, landlords) Life insurance carriers Businesses located in a foreign country Pyramid sale distribution plans Gambling activities Private clubs Government-owned entities	Businesses engaged in activity that is illegal under federal, state, or local law Entities involved in SBA loan packaging Any business with an Associate who is currently incarcerated, under indictment, or otherwise restricted Businesses with an equity interest owned by a lender Businesses with services or products of a prurient sexual nature Businesses that have previously defaulted on a federal loan or federally assisted financing Primarily political or lobbying activities Speculative businesses (for example, oil wildcatting)

Commonly Ineligible Business Types

Additional Ineligibility Examples

Non-profits
Financial businesses primarily engaged in lending
Passive businesses (for example, landlords)
Life insurance carriers
Businesses located in a foreign country
Pyramid sale distribution plans
Gambling activities
Private clubs
Government-owned entities

Businesses engaged in activity that is illegal under federal, state, or local law
Entities involved in SBA loan packaging
Any business with an Associate who is currently incarcerated, under indictment, or otherwise restricted
Businesses with an equity interest owned by a lender
Businesses with services or products of a prurient sexual nature
Businesses that have previously defaulted on a federal loan or federally assisted financing
Primarily political or lobbying activities
Speculative businesses (for example, oil wildcatting)

For the detailed list of ineligible businesses, head to the SBA's website to learn more.

SmartBiz Bank^SM SBA eligibility requirements

If your business does not fall under one of the excluded categories, the next step is to meet the following common eligibility requirements for an SBA loan from SmartBiz Bank or banks in the SmartBiz network.

$50,000 to $350,000 SBA 7(a) Working Capital or Debt Refinance² from SmartBiz Bank:

Business Basics	Ownership & Residency	Financial Strength	Credit & Risk History
U.S. based operating business Typically 3+ years in business Commonly approved businesses have $250,000 to $5 million in annual revenue and 1 to 40 employees	All direct and indirect owners must be U.S. citizens or U.S. nationals All owners must primarily reside in the United States Owners must be at least 21 years old	Must demonstrate sufficient cash flow to meet SBA debt service coverage requirements (minimum 1.1x BDSCR) Required financial documentation includes a current year Profit & Loss statement or most recent business tax return Additional financial documentation may be requested during underwriting	Typically a personal credit score above 660 No outstanding tax liens No bankruptcies or foreclosures in the past 3 years No recent charge-offs or settlements Up-to-date on government-related loans

Every application is evaluated individually. All approved borrowers must demonstrate the ability to make the monthly loan payment.

Learn more about SBA Loans

When it comes to SBA lending, we help you navigate the noise towards a ‘yes’ quickly.
We understand the SBA process so you don’t have to. Our technology and team make the application process simple and easy to navigate. After you start your application, we’ll walk you through every step and answer your questions along the way. But if you’d like to do a little research before you begin, you can learn more here:

SBA Loans overview

Start here and discover more about SBA loans and how they help small businesses.

SBA use of funds

How you can use SBA loan proceeds to save money and grow your small business.

SBA Loan approval

Learn about SBA loan guidelines and the approval process before applying to ensure a fast turnaround of your application.

SBA Loan Rates & Fees

Current interest rates, how they work, and other fees and costs associated with SBA loans.

Have 5 minutes? Apply online.

See if you pre-qualify without impacting your credit score.¹

See if you pre-qualify

1. We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, SmartBiz Bank and the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may impact your credit score.

2. Subject to credit approval. Your loan amount will be determined based on many factors, including your credit and financial profile. Not all applicants will qualify for the full amount.

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