Frequently Asked Questions

The SBA 7(a) program is generally more flexible and may be used for business acquisitions, owner-occupied commercial real estate, equipment, refinancing, working capital, and other eligible business purposes. The SBA 504 program is primarily designed for long-term fixed assets, including owner-occupied commercial real estate, construction, improvements, and major equipment.

Our team can review your transaction and help determine which SBA program may be more appropriate.

The required equity contribution depends on the SBA program, type of business, transaction, borrower qualifications, and lender requirements. Some SBA transactions may require approximately 10% equity, while startups, business acquisitions, special-purpose properties, and higher-risk transactions may require a larger contribution.

No, but credit quality is an important part of underwriting. Lenders typically review credit history, repayment history, liquidity, business performance, management experience, available collateral, and the overall ability to repay the loan.

Credit challenges do not automatically mean a transaction cannot qualify, but they may affect available financing options.

Closing time depends on the complexity of the transaction, lender, appraisal, underwriting, documentation, third-party reports, and borrower responsiveness. Many SBA transactions may take approximately 60 to 120 days, although some may close sooner or require additional time.

Business acquisitions, construction projects, and more complicated transactions generally require additional review.

Requirements vary by transaction, but lenders commonly request:

• Personal financial statements
• Business financial statements
• Personal and business tax returns
• Business debt schedule
• Bank statements
• Purchase agreement, when applicable
• Business plan, when applicable
• Commercial property information
• Lease information
• Borrower resume or management experience
• Business organizational documents

More documentation may be required during underwriting.

SBA lenders may take available collateral depending on the loan amount, transaction, and applicable requirements.

However, a lack of sufficient collateral does not necessarily mean an otherwise eligible SBA transaction will automatically be declined.

The lender will evaluate the entire credit profile and transaction.

Possibly. One bank's decline does not automatically mean your transaction is ineligible for SBA financing. Different SBA lenders may have different credit policies, industry concentrations, property preferences, underwriting standards, and risk tolerances.

Our team can review the reasons for the previous decline and determine whether the transaction may qualify with another SBA lender or whether it can be restructured to address the lender's concerns.

SBA financing is only one solution.

If an SBA loan is not available or is not the best fit, we have access to 75+ commercial loan programs and may be able to explore other financing options, including:

• Conventional commercial loans
• DSCR financing
• Private lending
• Bridge loans
• Construction financing
• Lite-Doc commercial loans
• No-Doc commercial loans
• Seller financing
• Commercial real estate investor programs
• Other alternative commercial financing

Our goal is to identify a realistic financing structure for the transaction—not force every borrower into an SBA program.

No. SBAcommercialloans.com specializes in SBA financing, but we know that not every commercial transaction fits SBA guidelines.

Through our broader commercial lending network, we have access to 75+ commercial loan programs, allowing us to explore alternative solutions when SBA financing is unavailable, takes too long, or simply is not the best fit.

No. No responsible lender or commercial financing professional should guarantee approval before completing the underwriting process.

All financing is subject to lender review, credit approval, SBA eligibility when applicable, satisfactory documentation, appraisal, title, third-party reports, and other underwriting requirements.

Yes. Some startup businesses may qualify for SBA financing. Startups generally require strong borrower qualifications, sufficient equity, relevant management or industry experience, a well-supported business plan, realistic financial projections, and adequate liquidity.

Yes. Previous business ownership can strengthen an application, but it is not always required. The lender will consider the borrower’s professional background, industry experience, management capabilities, financial strength, business plan, and overall transaction.

This can make SBA financing more challenging since the ability to repay the loan is an important part of SBA underwriting. However, the complete transaction should be reviewed before determining that financing is unavailable.

If SBA financing does not work, alternative commercial programs may evaluate the transaction differently and place greater emphasis on property cash flow, DSCR, collateral, bank statements, or other qualifying factors.

Yes. Complicated transactions are often situations where an experienced commercial lending team can provide additional value. We can review the borrower, business, property, cash flow, collateral, requested loan amount, leverage, and previous lender concerns to determine whether the transaction can be restructured or whether another financing program may be available.

Yes. SBA 7(a) financing is commonly used for business acquisitions. The lender will typically evaluate the purchase price, historical financial performance, business cash flow, buyer experience, equity contribution, business valuation, and ability of the business to support the proposed debt.

Yes. An SBA loan may be structured to finance both an operating business and the owner-occupied commercial real estate associated with that business. Combining the business acquisition and real estate into one financing structure can be an attractive option when the transaction qualifies.

Yes, provided the property meets applicable SBA owner-occupancy and eligibility requirements. SBA financing is primarily intended for commercial real estate occupied by the borrower’s operating business rather than purely passive real estate investments.

SBA financing is not designed for passive real estate investments. If the property is primarily an investment property, another commercial financing program such as DSCR, conventional, private, bridge, Lite-Doc, or No-Doc financing may be more appropriate.

Yes. Many franchise acquisitions and developments may qualify for SBA financing, subject to applicable SBA and lender requirements. The lender will review the franchise, borrower qualifications, required investment, projected cash flow, management experience, and overall transaction.

Yes. SBA 7(a) financing may include working capital along with other eligible business purposes. This flexibility is one reason the SBA 7(a) program can be attractive to businesses that need financing for multiple purposes within the same transaction.

Yes. Certain SBA programs may be used for eligible construction and expansion projects. The lender will typically evaluate the land, construction budget, plans and permits, contractor qualifications, borrower experience, total project cost, completed value, and the business's ability to support the proposed debt.

Possibly. Eligible business debt may be refinanced through an SBA program when the transaction meets applicable requirements and provides an appropriate business benefit. The lender will review the existing debt, use of proceeds, payment history, collateral, cash flow, and proposed financing structure.

In certain transactions, yes. A seller may agree to finance a portion of the purchase price through a seller note or second mortgage. Whether seller financing is permitted and how it is treated depends on the SBA program, lender requirements, seller-note terms, and overall transaction structure.

Yes. If the transaction cannot wait for the traditional SBA process, a bridge loan, private loan, DSCR loan, or another commercial financing program may provide an alternative. In certain situations, short-term financing may be used to complete the transaction and later refinanced into SBA, conventional, or other long-term financing when the borrower and property qualify.

Through SBA and our alternative commercial lending programs, financing may be available for many types of businesses and commercial properties, including:

• Office
• Retail
• Mixed-use
• Hotels
• Restaurants
• Medical properties
• Warehouses
• Industrial properties
• Senior housing
• Assisted living facilities
• Self-storage
• Owner-occupied commercial properties
• Multifamily and investment properties through non-SBA programs
• Special-purpose properties

Program availability depends on the specific property, borrower, loan purpose, and overall transaction.