Business Loan Financing Provides Money For Acquiring
A New Business, Starting A New One, Or Expanding
An Existing One
SBA 7A and 504, Small Business Loan Financing Overview
1. How do I apply for a SBA Loan Guarantee?
SBA has three different loan programs. Each of the programs
is designed to cover a variety of business needs, thus
providing the most options to small businesses. (More
on SBA's Loan Programs: As the programs are delivered
by SBA's partners and are not direct loans from SBA, businesses
should consult their District offices or contact the Lending
partners in their area before filling out any applications.
Contact Lightning Commercial Funding, Inc. and discuss
your loan proposal with
one of their loan officers.
Be prepared to discuss your proposal in detail with Lightning
Commercial Funding, Inc.. You should have the following
available for review; your business plan, your personal
financial statements, your
business financial statements (if already a business),
collateral available to secure the loan, assumptions used
in your projected earnings statements, management resumes
of those involved in operating the business, and pro-forma
balance sheets showing what the business would look like
if the loan were granted. Be prepared to discuss your
proposal in detail with Lightning Commercial Funding,
2. What do I need to qualify for a SBA Loan?
In order to get a 7(a) loan, the applicant must first
be eligible. Repayment ability from the cash flow of the
business is a primary consideration in the SBA
loan decision process but good character, management
capability, collateral, and owners equity contribution
are also important considerations. All owners of 20 percent
or more are required to personally guarantee SBA Loans.
3. What type of collateral do I need for a loan?
The SBA does not deny approval for a SBA guaranty loan
solely due to lack of collateral; however, it can be used
as a reason, in addition to other credit
factors. SBA is required to lien all available collateral.
4. How does the SBA guarantee loan program work?
Under the guaranty concept, commercial lenders make and
administer the loans. The business applies to Lightning
Commercial Funding, Inc. for their financing. The Lender
decides if they will make the loan internally or if the
application has some weaknesses which, in their opinion,
will require an SBA guaranty if the loan is to be made.
The guaranty which SBA provides is only available to the
lender. It assures the lender that in the event the borrower
does not repay their obligation and a payment default
occurs, the Government will reimburse the Lender for its
Loss, up to the percentage of SBA's guaranty. Under this
program, the borrower remains obligated for the full amount
5. Where do I obtain an application
for a SBA loan?
After filling out a standard 1003 on this site, we will
procure a Letter of Intent from a Preferred SBA lender,
then an SBA application will be sent to you and submitted
to the lender of choice on your behalf by Lightning Commercial
6. What is the interest rate on SBA loans?
SBA does not set the interest rate on the loans, only
the maximum rate the bank may charge. The actual rate
is negotiated between Lightning
Commercial Funding, Inc., the lender and the borrower.
7. How do I get a small business grant at this
Congress has not set aside any monies for grants to start
and/or expand a small business. The U.S. Government does
have grants that meet other purposes not related to business
needs. SBA does however provide a loan guaranty program
for loans made by your local lender. The SBA guarantees
loans that the lender could not normally approve.
8. How long do I have to repay a SBA loan?
The repayment term is generally between five and twenty-five
years depending on the life of the assets being financed
and the cash needs of the business. Working Capital Loans
(inventory and accounts receivable) should be repaid in
five to ten years. The SBA also has short-term loan guarantee
9. What if the lender declines me for a SBA Guaranteed
SBA no longer has direct funds to lend and cannot provide
financial assistance without a participating lender. Lightning
Commercial Funding, Inc. will submit your application
on your behalf to the best lender for your project. In
the event that you are turned down other lenders will
be pursued as well as other commercial
products instead of the SBA Business Loan or Small
Business Loan .
For immediate attention regarding your Small
Business Loan please click here.