What Every Small Business Owner Should Know
Not all SBA lenders are the same, and it is important for small business owners to understand the key differences before applying for an SBA loan. Each lender sets its own underwriting criteria, often shaped by their past experiences with specific types of businesses, classified by NAICS codes. This means a business that qualifies with one lender may not meet the requirements of another.
SBA lenders also use different credit scoring models, such as SBSS or E-Tran, which consider both the guarantor’s personal credit and the business’s credit profile. In addition, lenders have their own guidelines for loan amortization periods, interest rates, cost of capital, and closing fees, all of which affect the total cost of borrowing.
Debt Service Coverage Ratio (DSCR) requirements and collateral expectations vary from lender to lender, impacting on your eligibility and the terms of your loan. Because of these variations, it is crucial to have SBA Express on your side to compare multiple SBA lenders and understand their unique processes and requirements to find the best fit for your business needs.
With SBA Express vast National SBA Lender Network, entrepreneurs save time and potentially damaging credit inquiries by having their application placed with the right bank based on their earnings, credit, collateral (if applicable), and business type. This powerful advantage can often be the difference between being approved or declined for the credit needed to help small businesses thrive.
