SBA Loans

What is an

SBA Loan ?

You might have heard SBA loans are the gold standard for small business owners who want to expand. It’s true. Funds from these loans can be used in a multitude of ways to help a small business grow.

What exactly is an SBA loan? We’ll go over the costs, qualifications, use of proceeds and more to help you determine if this type of loan is the best option to fund your small business.

ZIP-LOAN Loans are for financially healthy borrowers. Most businesses can qualify for these loans if they’ve operated for at least two years with good credit, have no recent bankruptcies or foreclosures, and have cash flow that is sufficient to make the monthly payments throughout the life of the loan. The actual approval requirements will depend on the on the individual lender and factors such as your business revenue, cash flow and credit scores.

The eligibility requirements for a ZIP-LOAN SBA loan of up to $350,000 are:
  • Time in Business: 2+ Years
  • Business owners must be U.S. citizens or legal permanent residents
  • Business owners must have personal credit scores above 650
  • Cash Flow: Sufficient business and personal cash flow to service all debt payments demonstrated by tax returns and interim financial data
  • Public Records: No bankruptcies or foreclosures in the past 3 years; no outstanding collections; no open tax liens
  • SBA Specific Requirements: no delinquencies and/or default on government loans
The eligibility requirements for a ZIP-LOAN SBA commercial real estate loan above $350,000 are:
  • The real estate must be majority owner-occupied. This means at least 51% of the square footage of the property you’re buying or refinancing must be occupied by and used by your business.
  • Time in Business: 3+ Years
  • Business owners must be U.S. citizens or legal permanent residents
  • Business owners must have personal credit scores above 675
  • Cash Flow: Sufficient business and personal cash flow to service all debt payments demonstrated by tax returns and interim financial data
  • Public Records: No bankruptcies or foreclosures in the past 3 years; no outstanding collections; no open tax liens
  • SBA Specific Requirements: no delinquencies and/or default on government loans

If you meet the requirements above, you’re a good candidate to apply for a ZIP-LOAN SBA loan. If you don’t currently qualify, ZIP-LOAN is here to help. We have lots of resources about how to improve your credit scores.

Additionally, ZIP-LOAN  has established a program called Creative Lending that helps small business owners whose initial application was denied to take actions to improve their likelihood of approval on their subsequent application. We’ve worked with many small business owners who come back and are able to secure a low-cost SBA loan on their subsequent application.

Grow with ZIP-LOANS

ZIP-LOANS is here to help you grow over the long term. Our team works to provide you the best SBA options available. And if for some reason you don’t qualify for an SBA loan we have over 100 different lenders from alternative to mainstream solutions to help you get reach your goals.

In this era of urbanization and industrialization, there has been a rapid increase in the establishment of small businesses. They can be of different types depending on the ownership such as sole proprietorship, partnerships, or privately owned corporations with lesser annual revenue and fewer employees than an MNC or regular-sized business. The small business sector is making a mark in various countries like the United States, Australia, and various places in Europe, South Africa, and Asia. Digitalization has led the small businesses to offer more innovative solutions which were once only provided by enterprise-level corporations. Recent studies have shown that small businesses hold the largest employment base, GDP contributors and job generators in the world. No longer, this massive market opportunity is hidden in plain sight of human eyes. People from every corner of the world are now acquainted with all the benefits of having a small business.

That is why we have come up with various Small Business Finance Programs and Plans for our customers so that they have the opportunity to follow their passion and take their business to the peak of success without facing financial difficulties within a very short period of time.

Before you apply for a Small Business Loan from us, we are here to help you with a few essential queries which you might have. So let’s get started without wasting any time.

  1. 1
    What are SBA Business Loans?

    The small business financing loans are the ones which allow the SMEs to secure the financial support which they need for their business. These small business financing loans are modified form of personal loans which are specifically tailored for covering various business expenses such as rent, stock, wages, establishment, expansion, and more. The small business financing loans come with fixed interest rates, monthly payment options, flexible payback duration period, and more which makes it very easy and comfortable for small business owners to apply for their business loans.

  2. 2
    Do I qualify for an SBA loan?

    When you are applying for SBA business loans from us, you do not need to worry at all about the qualification requirements. For your SBA business loans, you should have a minimum credit score of 550. Apart from credit score, we also check various other things like your business size, sufficient equity, ability to repay, and collateral or a guarantee who owns at least twenty percent of your business. You can read about the qualification requirements later on our website in detail.

  3. 3
    How much down payment do I need for an SBA loan?

    With us, you do not need to submit a huge amount of down payment when you are taking a SBA commercial loan. We have set easy rules for the down payment of SBA commercial loan for our customers which only requires them to make a down payment of 10% to 20%. In case the business loan is under $25,000, you would not have to offer any collateral at all.

  4. 4
    How does an SBA Loan work?

    The SBA would not make any direct loan to the small businesses. They would set all the guidelines which are required for the loans and the loans are then made by their partners which include various micro-lending institutions, community development organizations, and lenders. The SBA always guarantees the repayment of the loans which somewhat eliminates the risk for its partners. So, when a business applies for a commercial loan which is structured accordingly to the SBA requirements.

  5. 5
    What are the requirements for an SBA loan?

    The eligibility requirements you need to have when you apply for an SBA 7(a) of $5000,000 to $5,000,000 are as follows

    • Time in business should be above three years
    • The personal credit score of the business owner(s) should be above 675.
    • At least fifty-one percent of the business property should be owner-occupied and by your business.
    • Personal cash and sufficient business for meeting all the debt payments, which should be demonstrated by interim financial data and three years of tax returns.
    • Customers cannot be a government declared delinquent and/or defaults.

  6. 6
    How do you finance a small business?

    There are various ways by which you can finance your small business with us. We offer various Small Business Loan Plans and Programs which you can opt for to finance your new business or help your already existing business to get back to the game. With our SBA loan facilities, your business would not only be financed, but we would also analyze your business to provide you with solutions so that you can grow your venture further in the future. You can also get a micro-loan, SME Loans, or MSME Loans from us to finance your small business.

  7. 7
    How do you qualify for a small business loan?

    To qualify for a small business loan, you have to fill out SBA loan online application form. The SBA loan online can be acquired without any difficulty as our qualification requirements are very minimal. You can easily check your eligibility criteria on our website by providing simple information such as the city in which your business is or would be established, your business experience, business turnover in the last year in case you have an existing business.

    We provide transparent, secure, and simple loan acquirement policies. You can upload all your documents online and submit your loan application from anywhere with a few clicks on your phone, laptop, or desktop. Apart from that you even have the option to sign all the loan agreements online at your convenience. Above all, with us, you would have the opportunity to receive your desired funds for your small business within only three days and we also have our customer service which is available 24/7 for our customers to help them with any problem.

    So do not wait or worry anymore regarding your financing needs for your small business. We are there to help you establish your business and make it renowned like any other MNCs out there in the corporate world!

Now For The Good Stuff

How much is an SBA loan going to cost you? The news here is positive – it’s tough to beat the low interest rates and long repayment terms for these loans. SBA loans tend to be the least expensive financing available to small business owners.

SBA loans come with different rates depending on the lender you work with; however, the SBA establishes the maximum amount that can be charged for these loans. ZIP-LOAN SBA loan interest rates are variable and depend on the loan amount:

5.25% to 6.50% (Prime Rate plus 1.50% to 2.75%) for commercial real estate loans $350,000 – $5 million
6.50% to 7.50% (Prime Rate plus 2.75% to 3.75%) for loans $30,000 – $350,000

As with other types of small business loans, there are several fees associated with ZIP-LOAN SBA working capital loans. Our lenders charges a one-time referral fee of no more than 2% the loan amount and a one-time packaging fee of no more than 2% the loan amount for non-commercial real estate loans. For working capital loans between $150,000 and $350,000 there is a 2.25% guarantee fee paid to the SBA. Bank closing costs for working capital loans typically add about another $317 and include standard bank fees, though additional 3rd party report charges may apply. Our lenders fees are deducted from loan proceeds so you get the net amount when your SBA loan is funded.

For commercial real estate loans, Our Lenders charge no more than a one-time 0.5% referral fee of the loan amount and no more than a one-time 0.5% packaging fee of the loan amount. Commercial real estate loans have a guarantee fee paid to the SBA between 2.25% and 2.76%, depending on the loan amount. Bank closing costs typically add about another $5,000 and include standard bank fees, appraisal, and title fees though additional 3rd party report charges may apply. ZIP-LOAN fees are usually deducted from loan proceeds so you get the net amount when your loan is funded.

Even after fees, SBA loans are vastly cheaper than the majority of alternative financing and alternative lender options. See below how these loans stack up against other small business loan options.

SBA costs and Fees !

    Zip Loan is a leading provider in retail consumer financing, offering a wide variety of flexible payment plans for our members. In addition to providing installment and lease credit, and private label revolving credit Zip Loan offers a diversity of credit promotions, thanks to our network of financing companies.

    ADDRESS

    3116 Weddington Rd #900, Matthews NC 28105

    PHONE

    800-560-7024 ​

    EMAIL

    info@zip-loan.com