{"id":20509,"date":"2023-04-13T09:23:11","date_gmt":"2023-04-13T09:23:11","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=blog&#038;p=20509"},"modified":"2024-03-12T11:16:57","modified_gmt":"2024-03-12T11:16:57","slug":"applying-for-an-sba-loan-what-you-need-to-know-before-you-start","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/us\/blog\/applying-for-an-sba-loan-what-you-need-to-know-before-you-start\/","title":{"rendered":"Applying for an SBA loan: what you need to know before you start"},"content":{"rendered":"\n<p><em>AUTHOR: Daire Burke, Head of North America at Swoop<\/em><\/p>\n\n\n\n<p>Small Business Administration (SBA) loans are a popular option for many American businesses for good reason: as a program, they keep the rates low and the terms long. This keeps the monthly repayments small, which means businesses can more comfortably borrow to cover their needs.&nbsp;<\/p>\n\n\n\n<p>Unlike some loans, an <a href=\"https:\/\/swoopfunding.com\/us\/sba-loans\/\">SBA loan<\/a> may be used for a wide range of business needs, including working capital, <a href=\"https:\/\/swoopfunding.com\/us\/business-loans\/business-refinancing-and-debt-consolidation\/\">debt consolidation<\/a> and the purchase of real estate. For many business owners, an SBA loan is their preferred choice: if the activity qualifies under the scheme, why look elsewhere?<\/p>\n\n\n\n<p>The downside is that applications can be complex, though Swoop makes this easier; factors businesses must consider before making an application are:<\/p>\n\n\n\n<ul>\n<li>Their directors&#8217; personal credit score<\/li>\n\n\n\n<li>That they meet criteria of operational eligibility<\/li>\n\n\n\n<li>That their business is not on a list of excluded industries<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><br>Owners\u2019 credit score<\/h4>\n\n\n\n<p>As with any loan, your personal credit score will affect how easy it will be for you to borrow, how much, and how much it will cost.&nbsp;<\/p>\n\n\n\n<p>Credit scores are based on your personal credit history and are a measurement of how you (and other directors) handle debt. The lender wants to have an idea of how risky it is to lend to you and businesses with a poor score (or no history of borrowing) will find be at a disadvantage when it comes to obtaining a loan.&nbsp;<\/p>\n\n\n\n<p>Poor credit scores can be repaired by demonstrating that your business is able to responsibly manage debt; it can be a good idea to know your credit score before an application and take any steps necessary to improve it before going ahead with a major funding plan. These steps may include paying off existing debt, or building a credit history with products such as credit cards to demonstrate your reliability as a customer.&nbsp;<\/p>\n\n\n\n<p>Credit scores are marked out of 1,000; a \u201cgood\u201d credit score is between 650 and 739, which is the minimum requirement for a business owner to qualify for an SBA loan from most lenders.&nbsp;<\/p>\n\n\n\n<p>Higher credit scores (740 &#8211; 799 is classed \u201cvery good\u201d and any score above 800 is \u201cexcellent\u201d) will result in better terms and more lenders competing for your business. A good credit score may also have a positive impact on other financial products for your business &#8211; including energy and utility costs &#8211; so a good credit score is something worth building and protecting.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><br>Operational eligibility<\/h4>\n\n\n\n<p>Although most businesses are eligible for a loan from the SBA, they must demonstrate that they meet certain criteria. Eligible businesses must:<\/p>\n\n\n\n<ul>\n<li>Be a for-profit organization<\/li>\n\n\n\n<li>Be engaged in, or propose to do business in, the United States or US territories<\/li>\n\n\n\n<li>Have reasonable owner equity to invest<\/li>\n\n\n\n<li>Make use of alternative resources, including personal assets, before seeking financial assistance<\/li>\n<\/ul>\n\n\n\n<p>There are also a number of sectors that are excluded from SBA funding programs. These include:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Gambling<\/li>\n\n\n\n<li>Life insurance<\/li>\n\n\n\n<li>Religious teaching<\/li>\n\n\n\n<li>Primarily political and lobbying activities<\/li>\n\n\n\n<li>Oil wildcatting<\/li>\n\n\n\n<li>Mining<\/li>\n\n\n\n<li>Mortgage servicing<\/li>\n\n\n\n<li>Real estate development<\/li>\n\n\n\n<li>Bail bond<\/li>\n\n\n\n<li>Pawn or private clubs<\/li>\n<\/ul>\n\n\n\n<p>For more information about eligibility criteria, check out <a href=\"http:\/\/www.sba.gov\" target=\"_blank\" rel=\"noopener\">www.sba.gov<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><br>Things to think about<\/h4>\n\n\n\n<p>SBA loans are popular but they are not the only funding game in town; although the rates may be attractive, you may find that even if you qualify, they are not the right source of funding for your business at this time.&nbsp;<\/p>\n\n\n\n<p>Swoop has a full range of products from across the market and it pays to do your research before you commit to one funding strategy.&nbsp;<\/p>\n\n\n\n<p>To find out how much you could borrow, compare terms and costs side by side and ensure you get the best deal at the right time, <a href=\"https:\/\/us.swoopfunding.ca\/login\/\" data-type=\"URL\" data-id=\"https:\/\/us.swoopfunding.ca\/login\/\" target=\"_blank\" rel=\"noreferrer noopener\">log into your Swoop account<\/a> or get in touch with your Swoop Account Manager to discuss your business needs or try Swoop&#8217;s <a href=\"https:\/\/swoopfunding.com\/us\/sba-loan-calculator\/\" data-type=\"URL\" data-id=\"https:\/\/swoopfunding.com\/us\/sba-loan-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">SBA loan calculator<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>AUTHOR: Daire Burke, Head of North America at Swoop Small Business Administration (SBA) loans are a popular option for many American businesses for good reason: as a program, they keep the rates low and the terms long. This keeps the monthly repayments small, which means businesses can more comfortably borrow to cover their needs.&nbsp; Unlike [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":20510,"comment_status":"open","ping_status":"closed","template":"","category":[307,41,59],"acf":[],"featured_image_urls":{"full":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner.png",1600,900,false],"thumbnail":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-150x150.png",150,150,true],"medium":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-300x169.png",300,169,true],"medium_large":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-768x432.png",768,432,true],"large":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-1024x576.png",1024,576,true],"1536x1536":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-1536x864.png",1536,864,true],"2048x2048":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner.png",1600,900,false],"image_blog":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-408x252.png",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-397x298.png",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-36x20.png",36,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-840x480.png",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-1024x500.png",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-80x45.png",80,45,true]},"post_excerpt_stackable":"<p>AUTHOR: Daire Burke, Head of North America at Swoop Small Business Administration (SBA) loans are a popular option for many American businesses for good reason: as a program, they keep the rates low and the terms long. This keeps the monthly repayments small, which means businesses can more comfortably borrow to cover their needs.&nbsp; Unlike some loans, an SBA loan may be used for a wide range of business needs, including working capital, debt consolidation and the purchase of real estate. For many business owners, an SBA loan is their preferred choice: if the activity qualifies under the scheme, why&hellip;<\/p>\n","category_list":"<a href=\"https:\/\/swoopfunding.com\/us\/category\/loans\/\" rel=\"category tag\">Loans<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/category\/funding-resources\/\" rel=\"category tag\">Funding resources<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/category\/blog\/\" rel=\"category tag\">Blog<\/a>","author_info":{"name":"signe","url":"https:\/\/swoopfunding.com\/us\/author\/signe\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner.png",1600,900,false],"thumbnail":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-150x150.png",150,150,true],"medium":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-300x169.png",300,169,true],"medium_large":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-768x432.png",768,432,true],"large":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-1024x576.png",1024,576,true],"1536x1536":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-1536x864.png",1536,864,true],"2048x2048":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner.png",1600,900,false],"image_blog":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-408x252.png",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-397x298.png",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-36x20.png",36,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-840x480.png",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-1024x500.png",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2023\/04\/US-blog-SBA-loan-banner-80x45.png",80,45,true]},"post_excerpt_stackable_v2":"<p>AUTHOR: Daire Burke, Head of North America at Swoop Small Business Administration (SBA) loans are a popular option for many American businesses for good reason: as a program, they keep the rates low and the terms long. This keeps the monthly repayments small, which means businesses can more comfortably borrow to cover their needs.&nbsp; Unlike some loans, an SBA loan may be used for a wide range of business needs, including working capital, debt consolidation and the purchase of real estate. For many business owners, an SBA loan is their preferred choice: if the activity qualifies under the scheme, why&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/swoopfunding.com\/us\/category\/loans\/\" rel=\"category tag\">Loans<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/category\/funding-resources\/\" rel=\"category tag\">Funding resources<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/category\/blog\/\" rel=\"category tag\">Blog<\/a>","author_info_v2":{"name":"signe","url":"https:\/\/swoopfunding.com\/us\/author\/signe\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/20509"}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/comments?post=20509"}],"version-history":[{"count":1,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/20509\/revisions"}],"predecessor-version":[{"id":28372,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/20509\/revisions\/28372"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media\/20510"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=20509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/category?post=20509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}