Am I Eligible for an SBA 7(a) Loan?
Most small businesses qualify under the following conditions:
- Business must be organized for profit
- Business must be located and operated in the U.S.
- Business must be owned by U.S. Citizen or Legal Permanent Resident
- Business must identify as being “small”
- Tangible Net Worth not in excess of $15MM;
- Average net income after Federal income taxes for the preceding two completed fiscal years not in excess of $5MM;
Some non-eligible businesses include:
- Non-profit organizations (For profit subsidiaries are eligible)
- Lending institutions
- Investment/Passive Income businesses
- Life Insurance Companies
- Located in a Foreign Country
- Private Clubs
- Default history on a federal loan
What documents will I need to prepare to prequalify?
- Loan Application
- Personal Financial Statement –for all 20% or more owners
- Last 3 years Personal Tax Returns –for all 20% or more owners
- Last 3 years Business Tax Returns
- Interim Business Financials Statements (Profit & Loss and Balance Sheet) within 30 days of application
- Business Debt Schedule
*Note: Additional documents may be requested during initial review