Frequently Asked Questions
Why SBLS ?
You should choose SBLS because we are not a bank. As business men and women ourselves, we understand the obstacles that small business owner’s face and will work to help make you and your small business a success. We are not subject to the constraints of banking regulations, either federal or state. In addition, since we are a non-depository lender, we do not require your other banking business (checking accounts, etc) be held with SBLS. Small business lending is all we do at SBLS. Put us to work for you, and we will be there to assist you as a fellow entrepreneur without a "Banker's" attitude.
Service is a word we really understand. We make the SBA application process as quick and painless as possible by working with our clients to offer the highest level of assistance available from the structuring of your loan request to the closing of your loan. At SBLS, we prove that we understand the importance of quick decisions by providing credit decisions within five business days of submission of your complete loan package. We believe borrowers appreciate straight talk and we always make it a point to provide honest and direct answers.
As an SBA, Non-Bank lender, we can process and close loans quickly, typically within 45 - 60 days.
Through the SBA 7(a) program, SBLS can provide your small business loan terms of up to 25 years with no balloon notes. As the borrower, you are the only one who can request early payment of your loan balance.
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What is the SBA and the 7(a) Program?
The U.S. Small Business Administration (SBA) was established in 1953 to provide assistance to Americans who want to start a small business or grow their existing business. The SBA is the nation's largest single financial backer of small businesses in the United States. Last year, the SBA offered management and technical assistance to more than one million small business owners. The SBA does this through a number of different programs including the 7(a) program.
The SBA 7(a) program, which SBLS participates in, provides short- and long-term loans to eligible, credit-worthy, start-up and existing small businesses that cannot obtain financing on reasonable terms through normal lending channels. The SBA provides financial assistance through its participating lenders in the form of loan guaranties, not direct loans. The agency does not provide grants for business start-up or expansion. Loans under the program are available for most business purposes, including purchasing real estate, machinery, equipment, and inventory, or for working capital. Generally the interest rate cannot exceed 2.75 percent over the prime lending rate as published in The Wall Street Journal. Loan maturities can be up to 25 years for loans collateralized by real estate.
For more information about the SBA 7(a) Lending Program, follow the link below to the official SBA Website.
The Small Business Administration's 7(a) Lending Program
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Is my business eligible?
The majority of businesses qualify for SBA financial assistance. The primary rules regarding eligibility are that:
- The small business must be operated for a profit.
- The business must be operated in the United States or its possessions.
- The owners must have equity to invest and must have utilized their available personal resources.
The following is a sample of the types of businesses that are eligible for financing with SBLS through the SBA 7(a) program:
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This list is just an example of the most common eligible businesses. If you are still unsure if your business qualifies after reviewing this list, please contact us.
Ineligible Businesses
- Real Estate Held For Investment (Rental properties)
- Academic Schools
- Lending Activities (Leasing Companies, factors, finance companies)
- Pyramid Sales Plans
- Gambling Activities (Casinos, race tracks, etc.)
- Charitable, Religious, or Other Non-Profit organizations
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What are the loan terms?
Existing Businesses:
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Start-up Businesses:
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How long does it take?
Approvals:
Upon receipt of a complete SBLS loan package, SBLS can provide an applicant a conditional approval within five business days.
Closings:
Each loan request is unique and may require additional information. Typically, SBLS can help you close your loan within approximately 60 days.
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What information is required?
Generally speaking, the required documentation for SBA lending is no more cumbersome than for a conventional loan when you have experts in SBA loan packaging and closing working for you. Our staff will work to the best of our ability to expedite the entire loan process. A complete loan package checklist is included in our application package found in our Forms section. However, we can often begin the loan process and possible issue a loan proposal with just the following information:
- Completed SBLS application forms.
- Existing businesses should provide tax returns for the past three years.
- Existing businesses should also provide a recent interim financial statement, no more than 60 days old.
- Start-up projects should provide a well thought out business plan, as well as detailed financial projections. Projections should be month-by-month for the first two (2) years operations.
- Personal tax returns for the past three years for all shareholders of 20% or more of the applicant business.
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How do I apply?
You can apply for a loan with SBLS one of two ways. The first is using the SBLS QuikApp. This link will take you to our online abbreviated application. Upon submission, SBLS will follow-up with you via e-mail or phone about the eligibility and structure of your loan request.
The second way to apply is just as easy. Just download our SBLS Application Package using Adobe Acrobat Reader. Once downloaded, print the forms. Included in the forms is a checklist of information for you to obtain. Once completed, just mail the application packet and the items on the checklist to:
Small Business Loan Source, LLC
Attn: John Wright
9801 Westheimer
11th Floor
Houston, TX 77042
How do I refer loans to SBLS?
Does SBLS accept Loan Referrals?
Yes, we are a very broker friendly firm and welcome all contact from referral sources.
Does SBLS pay referral fees?
Yes, we normally pay a set referral fee, however, there are certain relationships that can warrant a referral fee to be negotiated based upon the volume and quality of the loan packages submitted to SBLS.
Who do I contact to refer a loan and/or to set up a referral partnership with SBLS?
Please contact Kristin Welch by phone at 1-866-362-SBLS to refer a loan or explore a referral partnership with SBLS.
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