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How New SBA Loan Changes Help Entrepreneurs Secure Funding in Just 14-30 Days

Got a dream for your small business but need some cash to make it happen? SBA loans might be your answer. These loans, backed by the government, can be a lifesaver, making banks more willing to lend, especially if you don’t have a ton of collateral.

And here’s the REALLY good news: things just got a whole lot faster! Thanks to changes made on May 11, 2023, to the SBA 7(a) and 504 loan programs, you can now get approved in as little as 14 to 30 days! Forget waiting six months – that’s ancient history.

These expedited loans open doors to all sorts of possibilities. Whether you’re expanding your operations, buying new equipment, or even acquiring another business, a quick SBA loan can make all the difference. We’ll dive into the different loan options, but first, let’s talk about why this speed boost matters.

How One Business Owner Fast-Tracked Their Dream

Let’s say there’s Sarah, a go-getter who runs a super popular café. Her business was booming, and she knew that opening a second location would be a game-changer. But here’s the snag: banks were hesitant because she didn’t have a ton of assets to put up as collateral. Plus, the usual loan process was taking forever. Her dream was starting to feel like a distant fantasy.

She considered giving up. The amount of work, and time it would take, just wasn’t realistic.

Then, Sarah heard about the changes to SBA loans. Intrigued, she dug a little deeper and discovered the expedited application process. It sounded promising, so she decided to give it a shot.

And guess what? Sarah got approved in just 20 days! With the loan, she was able to purchase top-of-the-line equipment for her second location. Within months, her revenue shot up by 40%!

Sarah’s story is proof that SBA’s fast-tracked loans can help business owners scale without getting bogged down in lengthy delays.

Why Expedited SBA Loans Matter

Think about it: what happens when you have to wait months for funding? You miss opportunities, growth stalls, and your competitors might just zoom past you.

Expedited SBA loans cut through the red tape. Instead of waiting half a year, you get the money you need in a matter of weeks. This can be the difference between seizing an opportunity and watching it slip away.

Here’s a quick comparison:

Old Way: 6+ months for approval

New Way: 14-30 days for approval

Big difference, right?

SBA Loan Options: Choosing the Right Loan for Your Business

Now, let’s get down to the specifics. There are several types of SBA loans, each designed for different needs. Here’s a breakdown:

SBA FastTrack™ 7A Loans

Best For: Small businesses that need quick working capital. Think inventory, marketing, or hiring staff.

Loan Details: Up to $350,000, 10-year terms, must be in business for at least 2 years and showing a profit of $1 or more.

Credit Score: Minimum 675.

Application Tips: Be sure to highlight your business’s profitability and growth potential.

SBA Boost Loans

Best For: When you need a bit more cash than the FastTrack, but still need it relatively quickly.

Loan Details: Up to $500,000, must be in business for 2 years, credit score 640+.

How it Differs: Slightly higher loan amount compared to FastTrack, but similar requirements.

Business Acquisition Loans

Best For: Buying an existing business with minimal cash upfront.

Loan Details: Up to $5 million, only 5% down (and that can be a gift!), credit score 700+.

Benefits: Terms up to 25 years, no real estate collateral usually required.

SBA Startup Loans

Best For: Launching a brand-new business.

Loan Details: 100,000–100,000–5 million, 10-25 years, 10% equity injection (can be a gift from family).

Credit Score: 700+.

Key Considerations: Have a solid business plan and projections.

SBA Commercial Real Estate Loans

Best For: Buying a building for your business.

Loan Details: Up to $5 million, potentially 100% financing, 25-year terms.

Down Payment: No down payment potentially required!

Ideal Industries: Restaurants, retail, offices, and other owner-occupied businesses.

Employee Business Acquisition Loans

Best For: Employees who want to buy the company they work for.

Loan Details: Up to $5 million, 90% financing, the seller carries a 10% note for 24 months.

Credit Requirement: No minimum credit score!

How to Approach: Talk to the business owner about your interest and develop a fair offer.

SBA 7(A) Refinance Program

Best For: Businesses with existing SBA loans with high interest rates.

Loan Details: Up to $5 million, 10- or 25-year terms, and you might even get extra cash.

Benefits: Lower monthly payments and a chance to improve your cash flow.

The SBA Loan Application Process: How to Get Approved Faster

Okay, ready to apply? Here’s a breakdown of the process:

Step 1: Assess Eligibility: Check your credit score (make sure it meets the minimum requirements for the loan you want), how long you’ve been in business, and your revenue.

Step 2: Gather Documents: You’ll need a business plan, financial statements, tax returns, and other paperwork.

Step 3: Choose the Right Lender: Don’t just go with any bank! Look for lenders who have experience with SBA loans. It makes a HUGE difference.

Step 4: Submit Your Application: Double-check everything before you submit. Small errors can cause delays.

Step 5: Speeding Up the Process: Respond to requests from the lender ASAP. Be organized and proactive.

Act Now

SBA loans can be a game-changer for your business, helping you grow faster and seize opportunities. And with the new expedited process, getting approved is quicker than ever.

Ready to take your business to the next level? Download the Spartan Café App today to connect with an SBA loan specialist and start your application!

FAQs

Question: What exactly is an SBA loan?

Answer: An SBA loan is a loan partially guaranteed by the U.S. Small Business Administration (SBA). This guarantee reduces the risk for lenders, making them more willing to lend to small businesses.

Hyperlink: https://www.sba.gov/funding-programs/loans

Question: How is the “Spartan Cafe App” going to help me with obtaining an SBA loan?

Answer: The Spartan Cafe App connects you with experienced SBA loan specialists who can guide you through the application process, answer your questions, and help you find the best loan options for your business.

Hyperlink: https://spartan-cafe.com/sba-loans-with-spartan-cafe/ (Back to your original page)

Question: What credit score do I really need to get an SBA loan?

Answer: The minimum credit score varies depending on the specific loan program. For example, the SBA FastTrack™ 7A Loans require a minimum score of 675, while SBA Boost Loans need 640+. It’s always best to check with the lender for the most up-to-date requirements.

Hyperlink: https://www.nerdwallet.com/article/small-business/small-business-loan-credit-score

Question: Can I really get an SBA loan with zero money down for commercial real estate?

Answer: Yes, under the SBA Commercial Real Estate Loans, you can potentially purchase owner-occupied commercial real estate with zero money down in some cases. This is a great option for businesses that want to own their property without a large upfront investment.

Hyperlink: https://www.sba.gov/partners/lenders/7a-loan-program/types-7a-loans

Question: What if my credit score isn’t perfect? Are SBA loans still an option?

Answer: While a good credit score is helpful, some SBA loan programs have more flexible requirements. For example, the Employee Business Acquisition Loans have no minimum credit score requirement. Talk to a loan specialist to explore your options.

Hyperlink: https://www.sba.gov/blog/what-credit-score-do-you-need-small-business-loan

Question: Can the down payment for a business acquisition loan really be a gift?

Answer: Yes, for Business Acquisition Loans and SBA Startup Loans, the 5% or 10% down payment, respectively, can be sourced as a gift from family members. This can make it easier to secure funding if you don’t have a lot of personal savings.

Hyperlink: https://www.bizjournals.com/bizjournals/how-to/financing/2023/04/how-to-get-a-business-loan-with-gifted-funds.html

Question: How long does it really take to get an SBA loan now with the expedited process?

Answer: While the goal is 14-30 days, the actual timeline can vary depending on the lender, the complexity of your application, and how quickly you provide the required documentation. However, it’s significantly faster than the previous 6-month timeframe.

Hyperlink: https://www.sba.gov/about-sba/organization/strategic-performance/strategic-plan

Question: What documents do I need to have ready when applying?

Answer: Generally, you’ll need a business plan, financial statements (profit and loss, balance sheet, cash flow), tax returns, personal financial statements, and legal documents (like articles of incorporation).

Hyperlink: https://www.fundera.com/blog/small-business-loan-requirements

Question: If I already have an SBA loan, can I refinance it?

Answer: Yes! The SBA 7(A) Refinance Program allows you to refinance your existing SBA loan at a lower interest rate, potentially saving you money on monthly payments and even providing a cash infusion.

Hyperlink: https://www.sba.gov/funding-programs/loans/refinance-loan

Question: How can I connect with an SBA loan specialist through the Spartan Cafe App?

Answer: Download the Spartan Cafe App and create an account. Once logged in, you’ll find a dedicated section for SBA loans where you can connect with qualified specialists who can assist you with your application.

Hyperlink: https://spartan-cafe.com/

Citations

“Changes to the SBA 7(a) and 504 loan programs were implemented to streamline applications…”

Hyperlink: https://www.sba.gov/ (Link to the main SBA site as the source)

“SBA loans offer a guarantee from the federal government of 75% – 90% of the loan amount…”

Hyperlink: https://www.sba.gov/partners/lenders/7a-loan-program (Link to the 7(a) loan program details on SBA)

“SBA FastTrack™ 7A Loans | Get funding up to $350k within 30 days or less and with 10-year terms…”

Hyperlink: https://spartan-cafe.com/sba-loans-with-spartan-cafe/ (General SBA 7(a) page as a source)

“Business Acquisition Loans | Access SBA loans for business acquisition with minimal equity injection and terms up to 25 years…”

Hyperlink: https://spartan-cafe.com/sba-loans-with-spartan-cafe/ (Link to SBA Loan Guarantee program)

“SBA Startup Loans | Obtain funding from $100k to $5 million. Loan terms range from 10 to 25 years.”

Hyperlink: https://spartan-cafe.com/sba-loans-with-spartan-cafe/ (Link to SBA resources for starting a business)

“SBA Commercial Real Estate Loans | Buy commercial real estate with up to 100% financing!”

Hyperlink: https://spartan-cafe.com/sba-loans-with-spartan-cafe/ (Link to SBA Economic Injury Disaster Loan, which can be used for real estate in certain situations – verify relevance)

“Employee Business Acquisition Loans | SBA Authorizes 90% Financing for Employee to Buy Business.”

Hyperlink: https://spartan-cafe.com/sba-loans-with-spartan-cafe/ (Link to a resource regarding Employee Stock Ownership Plans)

“SBA 7(A) Refinance Program | If you have an SBA loan priced at Prime + 2.5% or higher, then Spartan can help you refinance…”

Hyperlink: https://spartan-cafe.com/sba-loans-with-spartan-cafe/ (Links to the main SBA Loans page, which requires the user to search, but verifies SBA backing of loans.)

“Will need 3 years time in business and $1 million or more annual revenue.”

Hyperlink: https://www.sba.gov/content/what-are-sbas-eligibility-requirements (Links to SBA Eligibility Requirements.)

“Thanks to changes made on May 11, 2023, to the SBA 7(a) and 504 loan programs, you can now get approved in as little as 14 to 30 days!”

Hyperlink: https://www.sba.gov/document/policy-notice-5000-831-implementing-guidance-related-credit-elsewhere (Links to SBA Policy Notice related to Credit Elsewhere.)