Coastal Community Bank explores some of the common questions people have about SBA loans.

Coastal Community Bank explores some of the common questions people have about SBA loans.

Why SBA loans are worth a second look

Answering common questions about SBA lending

Despite our strong economy and pro-business atmosphere, many business owners shy away from SBA lending because of some misperception or past experience. Here are some common concerns we often hear:

“I’ve heard there’s too much paperwork and SBA loans take too long to fund?”

The SBA has introduced a simplified application that’s used to access all SBA loan programs. In addition, many community banks are now among the financial institutions recognized as SBA Preferred Lenders, providing expedited in-house approvals. By reducing the amount of paperwork and localizing the approval process, gaining access to SBA guaranteed funds is easier and faster than before.

“Aren’t SBA Loans designed for businesses that can’t qualify for a bank loan?”

Well, yes and no. Yes, SBA loans are designed with more flexible terms so they can appeal to a borrower who, say for example, needs a longer repayment term. But many businesses might fall into a category in which the SBA can support their lending needs. For example, there are SBA programs that support export businesses specifically as well as incentives for businesses that operate in economically disadvantaged areas.

“SBA Loans have too many limitations can restrict how much you can borrow.”

While each program is structured a bit differently, the 7(a) Guaranty Loan Program is the primary and most flexible SBA loan program, providing guarantees on loans up to $5 million for a wide range of purposes, such as:

• Purchase real estate to house the business

• Construction, renovation or leasehold improvements

• Acquisition of furniture, fixtures and equipment

• Acquisition of a business

• Purchase of inventory

• Working capital

“I’ve been turned down for an SBA loan already. Is it worth applying for one now?”

SBA doesn’t loan money itself. Instead they guarantee a certain portion of your loan with a financial institution. While there are many rules and requirements, individual banks have some leeway in the decision making process, and one bank may have stricter requirements than another. Don’t stop with one decline and think an SBA loan isn’t right for you.

Coastal Community Bank | Member FDIC | Equal Housing Lender

Talk to us

More in Marketplace

Using compost to create a yard to be proud of

Cedar Grove helps create a healthy, green lawn, fertile garden beds without fertilizers, pesticides

Everett spine surgeon pioneers newest robotic technology

Dr. Ali Anissipour, of Western Washington Medical Group in Everett, is the… Continue reading

Crash course: How will the bills get paid after a serious accident?

If you’re injured in a motor vehicle collision you may need treatment… Continue reading

The Remedy Tulalip budtenders have lots of great ideas for Valentine’s Day. Stop by the store to catch great love-bird specials!
Love potions and romance remedies!

This Valentine’s Day, spice things up with green flowers and adults-only chocolate

5 ways to find a mattress store you can trust

Need a new bed? Rest easy once you find the right help

Keeping communities safe: Snohomish County planning for disaster

Updated Hazard Mitigation Plan identifies prevention projects as county grows, changes

Tools and equipment shipped right to your jobsite

Everett manufacturer and hardware supplier has been providing solutions for more than 40 years

Local Healthcare Providers – why it’s important to our community

Hear what one Western Washington Medical Group doctor has to say about being local

Legal help available through free online service

Your chance to win pro football tickets comes with signing up for MyTrafficMan.net’s Busted911.com

Kitchens a great place for family bonding

Engineered stone countertops can be a key ingredient in your family’s cooking adventures

Geriatric mental health: Finding the right home is important

Assessment, creation of a care plan are valuable next steps in process, specialist says

Fantastic food can spice up holiday gatherings

Selecting the right caterer can make your special event memorable, from Bellingham to Bothell