How to Obtain an SBA Loan: Part 1

SBA LOAN DEFINITION: BORROWER, PART 1 of 5

Borrower: Who is qualified for an SBA Loan?

A person who wants to borrow from a lender who finances SBA Loans needs to have these qualifications:

...1. EXPERIENCE - Requisite experience in the industry he is in or wants to participate in. Standard guidelines for this experience is a minimum of one year as an owner or manager. On a case-by-case basis, a Borrower can transfer experience in a different industry as qualification for this guideline.

2. CASH - Requisite funds as a down payment and/or “cash injection” for the purchase or project including up-front costs charged by the SBA Lender.

3. CREDIT - Requisite credit to qualify under the SBA Lender’s guidelines. There are national SBA Lenders who do not have a minimum credit score requirement. However, a Borrower will have difficulty or not be able to qualify if there are these issues on a credit report: late payments, charge offs, judgments, tax liens and the like.

4. INCOME - Requisite of personal income into the Borrower’s household. The industry standard for a borrower’s income into the household is $30,000 dollars. An SBA Lender wants to make sure the borrower has enough household income to cover the borrower’s household expenses including food. (exceptions on a case-by-case basis with a letter of explanation)

Joel Soforenko is an industry veteran having extensive experience with SBA 7(a), SBA 504 and USDA loans. He has assisted borrowers as a loan originator, processor, underwriter and Manager of the SBA Department of a major origination platform. Joel is now the CEO of Continental Finance Capital Corp and can be reached at (617) 336-3215 x 5 or [email protected]