How to Apply for SBA Small Business Loans

Contact a Banker about How to Apply for SBA Small Business Loans

Application Process

Using the required documents and initial information (see the lists below), your SBA loan officer at Highland Bank will determine the best program and structure for your loan request. Your business experience, cash flow, collateral, credit and other financial strengths will all be considered.

Following a positive initial analysis, your loan officer will guide you through the process of getting your loan approved and funded. The process begins with our 48-hour response to your complete application. Total duration varies with each loan program.

Required Documents

Preparation is key to a quick loan approval. You can get ready by collecting the following documents and information:

Start-up Business

Business plan
Past 3 years of personal tax returns for all owners
Personal financial statement for all owners
Resumes for all principals, guarantors and key managers
Source and amount of down payment
Available collateral
Ownership documents

Existing Business

Past 3 years of business tax returns
Interim financial statement
Past 3 years of personal tax returns for all owners
Personal financial statement for all owners
Business debt schedule

Ownership documents

Main Benefit
Qualifications
Additional Benefits to Borrower
Maximum Loan Amount
Use of Proceeds

- SBA 7(a) Program
- Maximum flexibility in structure, terms and uses
- Must qualify as a small business according to SBA guidelines. Size varies by industry type. Limitations are set by total revenues or number of employees, depending on industry. More than 95% of U.S. businesses are classified as “small” by SBA standards. Most manufacturing, wholesale, service and retail businesses are eligible for 7(a) financing.
- - Loan terms up to 25 years and lower payments
  - Fully amortized terms with no balloon payments
  - Flexible use of loan proceeds
  - Competitive rates
  - Export working capital loans available
  - Preferred SBA Lender Program for quicker approval
- Loans up to $5M with SBA limits of $3.75M on the guaranteed portion for any one business and its affiliates
- - Real estate purchase
  - Acquisition
  - Renovation
  - Construction
  - Equipment purchase
  - Start-up capital
  - Refinance
  - Franchise financing
  - Working capital
  - Expansion
- SBA 504 Loans
- Lower down payments, fixed rates and longer terms for businesses with net worth under $15M
- Tangible net worth may not exceed $20M and after-tax net profits must have averaged less than $5M during the previous 2 years of operation.
- - Loan terms of 10-25 years and lower payments
  - Below-market fixed rates on SBA financing
  - Debenture allows larger projects
  - Fully amortized terms with no balloon payments
  - Smaller down payment required
  - Flexible eligibility requirements
- Loans up to $5.5M for manufacturing businesses or energy-efficient projects valued at up to $11M
- - Real estate purchase
  - Acquisition
  - Renovation
  - Construction
  - Equipment purchase
  - Expansion
- SBA Express Loans
- Streamlined application and underwriting for amounts under $500,000
- Must qualify as a small business according to SBA guidelines. Size varies by industry type. Limitations are set by total revenues or number of employees, depending on the industry. More than 95% of U.S. businesses are classified as “small” by SBA standards. Most manufacturing, wholesale, service and retail businesses are eligible for SBA Express financing.
- - Terms up to 10 years
  - Working capital lines of credit
  - Streamlined loan review process
  - Competitive rates
  - Flexible eligibility requirements
- Loans up to $500,000
- - Revolving line of credit to finance short-term business working capital