How to Decipher Your SBA Loan Offer

If you're a small business owner in the market for an SBA loan, these are often available in a range of amounts, anywhere from $30,000 up to $350,000.  Once you've submitted your application and have completed the underwriting process, you'll likely receive a personalized SBA loan offer.   Here is how you can make sense of that offer and make your final borrowing decision.

Your SBA Loan Offer

Once your loan has gone through the underwriting process, the application will be either approved or declined.  The chances of being declined after this stage become much less as a lot of your history and background have now been reviewed and approved.  When you receive your loan offer, you'll want to verify the following items:

  • Loan Amount - Verify that you have been approved for the total amount of your financing request.
  • Monthly Payment - This is the amount that you'll need to pay back each month on the loan.
  • Term - This is the length of the loan payback.  Some alternative lenders can provide an SBA loan with a longer term, which can lower your monthly payments.
  • Interest Rate - This is the interest rate that you'll pay on your business loan.
  • Fees - Determine if there are any one-time fees and closing costs that will be paid when the loan is funded.

Making a Borrowing Decision

Once you receive your SBA loan offer, it's important that you make a decision as soon as possible.  While there is no set time limit on the offer, if you delay too long it's possible that the lender will require you to go through some of the underwriting process again.  This is something that you'll want to avoid as it could change your loan decision.

The Final Steps

If you've decided to move forward with your SBA loan, you'll simply need to finalize the process.  This will vary depending on the lender.  You may be able to complete this electronically, or you will go to an office to sign loan paperwork. 

SBA loans provide a simplified process for small business owners to get much-needed funding for their ventures.  Contact us to learn more about our SBA loan program or our other alternative financing solutions for small businesses.