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How to Apply for an SBA Loan
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With the exception of handicap loans, the SBA does not make loans directly. So, while the SBA can help you determine which loan is right for you, help you find the nearest provider, and may even act as your loan gaurantor, it is completely up to you to contact the banks, certified development companies, or Small Business Development Center to apply for a loan.

Once you know which loan you are applying for, you will need to fill out the appropriate paperwork, including several forms that must be completed prior to submitting your application.

Contact  your local SBA office, certified SBA lenders, or local lending institutions for more details.

Sample documents:
  • Past two years of tax returns
  • Recent pay stubs
  • Home mortgage statement
  • Copy of business license
  • Personal credit references
  • Quote for equipment purchase
  • Customer purchase orders
  • Contracts

Timing
Timing for approval of an SBA loan varies depending on the loan. Some loans, such as the 7(a), have a two to three day turnaround, while others may take up to two weeks. Your local SBA office can provide more details.

Fees and Interest Rates
Interest rates are generally negotiated between the borrower and lender but must comply with SBA maximums that are tied to the prime rate.

The Small Business Administration charges lenders a guaranty and servicing fee for each approved loan. Lenders may pass these fees, which are determined by the amount of the loan guaranty, on to you. Details of the most current fees can be found at  your local SBA office.

And finally, all SBA loans are subject to a 50-basis point (or .5 percent) annualized servicing fee that is applied to the outstanding balance of SBA's guaranteed portion of the loan. To determine the fee, multiply the balance by .5 percent.

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