Commercial SBA loans in Indianapolis vary greatly in many ways. And, that’s definitely a good thing because it means far more options. So, it’s possible to find the best fit for your particular needs. Read on to learn more about Commercial SBA loans in Indianapolis. Commercial SBA loans in Indianapolis are available in various forms. In other words, these are not necessarily one size fits. Which is a huge benefit to companies, whether large, small, just starting up, or needing new funds to grow? Whatever the reason, commercial SBA loans in Indianapolis can be just the right answer.
About Commercial SBA Loans
Let’s begin with a simple explanation of what commercial SBA loans are and aren’t. First of all, the Small Business Administration does not loan money. Instead, the lending is done by banks and other financial entities. The SBA merely backs part of these commercial loans and provides guidelines. Commercial SBA loans can be as much as $5 million in size. Repayment schedules range from short-term up to 10 years and even up to 25 years (usually the latter is for commercial real estate transactions). Borrowers make monthly payments and the funding time runs between 30 to 90 days, generally.
Commercial SBA Loan Requirements
Now, we’ll take a quick look at eligibility for commercial SBA loans in Indianapolis and elsewhere. Usually, the lender will first attempt to qualify the borrower for a traditional business loan. If the borrower does not qualify, the lender will go to the SBA loan route. Here are the basic eligibility requirements of a commercial SBA loan:
- The business must have its location and operate in the US.
- The company applying must be a for-profit entity and operate in an eligible industry.
- The borrower must be invested in the business itself, having a certain level of equity.
- The business must be the right size, with a certain number of employees, and earn a certain amount of annual revenue. (In other words, it must be a small business.)
Of course, this is just a general overview and more factors may or may not come into play when applying for a commercial SBA loan in Indianapolis. Generally, applicants will need a number of documents, including a business plan, business tax returns, financial projections, and more. All of the required documentation will be listed by lenders. It’s best to be prepared and have what’s necessary in order to obtain a commercial SBA loan.