Are You All Set: Quick check on the documents
A loan applicant is probably asked to furnish his/her personal details as about his/her background, his/her address, names that he/she uses his/her educational background and criminal record, if any. Prior criminal history is not necessary disqualification. Special committee make the final decision. He/She also has to produce his/her business experience to assess his/her efficiency in the business he/she has suggested and acquiring loan for. He/She should be able to submit prior years business financial statements. projecting the financial statements, profit and loss, cash flows and balance sheet. Most of the time, applicant is required to produce his/her personal and business income tax returns from last 3 years. Other documents may include business credit report, financial and bank statements and some other legal documents like business licenses and registrations required for to conduct business, Articles of Incorporation, copies of contracts with any third parties, commercial leases and franchise agreements.
What is the typical cost for SBA 7(a) Loan
- $70,000 to $350,000 are the typical SBA 7(a) Loan size.
- Loan amount for typical of $350,000.
- For 10 years for Interest & Principal repayment term,
- Monthly payment $3,929.80, Interest rate 6.25% APR including fees 7.73%.
- The most typical rates are 6.25% to 7.25% interest rate is variable and based on Prime Rate plus 2.75% to 3.75%.
Your SBA resource Specialist can advise and suggest the various other options and exceptions are available.