Question 1

What is an SBA loan and how does it work?

Accepted Answer

An SBA loan is a government-backed program that helps small businesses secure long-term financing at low-interest rates. The Small Business Administration (SBA) guarantees a portion of these loans, reducing the risk for lenders and making it easier for small businesses to get approved. While the SBA doesn't directly lend money, their guarantee encourages banks and financial institutions to offer these loans. Terms and fees can vary between lenders.

Question 2

What can an SBA loan be used for?

Accepted Answer

SBA 7(a) loans ranging from $25,000 to $350,000, facilitated by banks partnered with Indymae, serve versatile purposes like refinancing certain high costing loans and working capital. Working capital usage spans operational expenses, marketing, hiring, and more.

Additionally, these loans can fund new equipment purchases.

Question 3

Where can I apply for an SBA loan?

Accepted Answer

You can apply for an SBA loan through the SourceOne online platform. We connect you with a network of Preferred SBA lenders, each with unique credit requirements. Our advanced software matches you with the lender most likely to approve and fund your loan, simplifying the application process and increasing your chances of success.

Question 4

What are the costs associated with an SBA loan?

Accepted Answer

SBA loans are known for their low-interest rates and extended repayment terms, making them a cost-effective financing option for small businesses. Interest rates can vary depending on the lender, but the SBA sets a maximum limit. For debt refinancing and working capital loans, the maximum rate is the Prime Rate plus 2.75% to 4.25%.

Question 5

What fees are involved with an SBA loan?

Accepted Answer

SBA working capital loans through SourceOne come with some fees. For loans up to $350,000, there's usually a one-time packaging fee capped at $2,500. The SBA also charges a guaranty fee: 2.0% for loans up to $150,000, and 3.0% for larger amounts. Loans in eligible Rural Areas or HUBZones may qualify for reduced fees. Additionally, there may be bank closing costs around $695, including standard fees and potential third-party report charges.

Question 6

How can I check if I'm eligible for an SBA loan?

Accepted Answer

To be eligible for an SBA 7(a) loan through SourceOne, your business must meet these criteria: - Operate for over two years - Business owner's personal credit score above 650 (675 for commercial real estate) - U.S.-based and owned by a U.S. citizen or lawful permanent resident aged 21+ - No outstanding tax liens, bankruptcies, or foreclosures in the past 3 years - No recent charge-offs or settlements - Up-to-date on government-related loans - 51% owner-occupied real estate for commercial real estate (CRE).

Question 7

Complete the online application form

Accepted Answer

Upload necessary documents securely online. The SourceOne team representatives are ready to address any inquiries and assist you throughout the process. Here are some frequently requested documents:

• Personal & Business Tax Returns
 • Personal Financial Statements, required from each individual owner of the company
 • Profit and Loss Statement
 • Balance Sheet
 • Business Debt Schedule

Additional documents like business licenses, articles of incorporation, commercial leases, or franchise agreements may be requested based on the specific loan application. Consider seeking assistance from an accountant or tax preparer to compile and submit the necessary information.

Question 8

SourceOne will match you with the lender most likely to approve and fund you

Accepted Answer

Our skilled financial experts, coupled with our advanced technology platform, connect you with a reputable lender from our network, maximizing the likelihood of securing funding for your business. Approximately 90% of the qualified applications we refer result in successful funding.

Question 9

Bank Issues  Your Business an Approval

Accepted Answer

The bank reviews your application and credit profile to approve your application

Question 10

Time for Loan Funding

Accepted Answer

Loan proceeds are disbursed. Once the application is approved, funds can be deposited into your bank account in as fast as 7 to 14 days.

Question 11

What is an SBA loan?

Accepted Answer

SBA loans, backed by the government, are specially crafted for eligible U.S. entrepreneurs and are typically offered through banks and financial institutions. Boasting extended terms and favorable rates, SBA loans deliver outstanding value for small businesses looking to expand.

Question 12

Am I a good candidate for an SBA loan?

Accepted Answer

If your business demonstrates strong financial health, has been running for over two years, and boasts a robust credit history, and your personal credit is rated good or better, you're likely an ideal candidate. The fastest way to confirm is by submitting an application.

Question 13

What documents do I need to apply for an SBA loan?

Accepted Answer

You can start your application right now and upload the following documents:

- Most recently filed 3 years business and personal tax returns
- Most recent 6 months business bank statements (all open accounts)
- Color photo front and back of your driver's license
-Voided business check

Note: All owners more must apply regardless of % of ownership and provide personal tax returns and identification

Question 14

What options are there should I be declined for an SBA loan?

Accepted Answer

Our extensive network of reliable banks and lenders offers diverse options for businesses that may not currently meet SBA loan criteria. In most cases, a single application is sufficient; we'll provide you with alternative financing offers.

Question 15

What if I have an EIDL or other SBA loans?

Accepted Answer

Having outstanding SBA loans, such as the EIDL or other SBA loans, does not necessarily preclude you from obtaining additional SBA loans.

SourceOne has achieved success in securing additional loans for many clients through its extensive network of SBA lenders, even as soon as 90 days after their initial funding.