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SBA Financing Provides Money For Acquiring A New Business, Starting  A New One, or Expanding An Existing One.

SBA Loan Programs For Business Acquisition or Expansion


SBA 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, Inc. .

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 due.

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 Funding, Inc..

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 time?

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 programs.

9. What if the lender declines me for a SBA Guaranteed loan?

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 .

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Lightning Commercial Funding - Small Business Loans, SBA Loans San Diego