SBA loan requirements
The Small Business Administration (SBA) backs loans to help small businesses qualify for low rates and large funding amounts. In a nutshell, an SBA loan is a small business loan that’s backed by the government. Depending on the loan you go with, you could borrow anywhere from $500 to $5 million.
But SBA loans involve taxpayer money, so tighter requirements are associated with them than a typical business lender. For example, the SBA restricts what types of business qualify, how large or small your business can be and your business must be located in the US.
But on the plus side, they don’t require a minimum credit score.
At a minimum, you must meet the following criteria to qualify for an SBA loan:
- Be a for-profit business
- Meet specific SBA size standards
- Eligible industry or business type
- Operate in the US or territories
- Exhausted all other financial resources