Quick Introduction to SBA

“Created in 1953, the U.S. Small Business Administration (SBA) helps small business owners and entrepreneurs pursue the American dream. SBA works to ignite change and spark action so small businesses can confidently start, grow, expand, or recover. They do this through providing counseling, capital, and contracting expertise.” CrossFirst Bank has a team of dedicated full-time bankers who focus solely on providing extraordinary service to SBA clients. In fact - CrossFirst Bank is proud to be an SBA Preferred Lender. Under the SBA Preferred Lenders Program (PLP), CrossFirst Bank has been delegated authority by the SBA to approve loans, resulting in faster service to local small business owners in need of capital. With this lending authority, SBA has authorized CrossFirst Bank to make the credit decision without prior SBA review on many types of loans.

In this blog, we’re going to go over four common myths that may be preventing you from realizing the advantages an SBA loan can provide.

Myth #1: SBA is Only for Start-Ups

SBA loans are not only for start-ups. Established companies can apply for SBA loans. According to the SBA, “In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Normally, businesses must meet SBA size standards, be able to repay, and have a sound business purpose. Even those with bad credit may qualify for funding.”

Here are the three types of SBA loans:

  • 7 (a) Loans – A group of SBA loans which are partially guaranteed by the SBA, have limits on the interest rate, and limit fees
  • 504 Loans – Long-term, fixed-rate financing to purchase or repair real estate, equipment, machinery, or other long term assets
  • Microloans – SBA’s smallest loan program, providing $50,000 or less to help businesses start up and expand. CrossFirst Bank will be glad to provide you with a list of SBA Micro Lenders.

Myth #2: SBA is Only for Troubled Businesses

SBA resources are not only for troubled businesses. Whether your business is in good shape, relatively new , or still in the planning stage, we recommend reaching out to one of our CrossFirst Bank SBA bankers to see what you may be eligible for.

Myth #3: SBA Requires You First Be Denied by Another Bank

SBA does not require a denial from any other bank or different financing program before applying for SBA resources. SBA is not a “second chance” program or “last ditch” option to achieve your business goals. In fact, applying for an SBA-guaranteed loan may provide some unique benefits over a traditional commercial loan:

  • Competitive terms: SBA-guaranteed loans generally have rates and fees that are comparable to non-guaranteed loans.
  • Counseling and education: Some SBA loans come with continued support to help you start and run your business.
  • Unique benefits: Lower down payments, flexible overhead requirements, and no or limited collateral needed for some loans.

Myth #4: SBA Requires Excessive Collateral

SBA loans do not require excessive collateral, and do not force you to go through endless hoops to apply. Just like any significant loan application, the process is thorough and can be confusing, but that’s exactly why CrossFirst Bank has a team of SBA experts who will walk you through the process step-by-step. This process will include verifying your:

  • Business Plan
  • Business Cash Flow
  • Personal Income
  • Credit history
  • Assets
  • Liabilities

Let’s Get Started!

CrossFirst Bank would be honored to be your SBA loan provider. Since 2007, we’ve been committed to serving our communities in extraordinary ways through unparalleled service. Reach out to one of our SBA bankers today!

Disclosure: All loans are subject to application and approval. CrossFirst Bank does not currently offer SBA Microloans.