With so much information out there, it's difficult to know where to begin. At WaFd Bank, there are several application paths to choose from, depending on the size and type of SBA 7(a) loan you need, as well as SBA 7(a) loan uses. Read on for answers to common questions as you navigate the process.

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How Can You Get an SBA Loan?

The application process for an SBA 7(a) loan is similar to that for a regular business loan or line of credit. Your business banker can guide you through the process and answer any questions you might have! In a nutshell, the steps to getting an SBA loan are:

  1. Determine your lending needs
  2. Review your credit history
  3. Research banks and possibly get quotes
  4. Gather documents; you may need to provide this and other information:
    1. Business plan, if your business is new
    2. 2-3 years of tax returns, potentially both personal and business
    3. Personal financial statement
    4. Financial statements such as a current balance sheet, profit and loss statement, and current and historical cash flow statements
    5. Bank statements from the past 6-12 months if you are applying where you do not have business bank accounts
    6. Legal documents such as your business license, registration, and any relevant legal contracts and documents
    7. Collateral, such as property or equipment, if required to secure the loan
    8. Social Security numbers of anyone who owns 20-25% or more of the business, depending on the business type and lender
  5. Submit your application

How Much Do You Have to Put Down on an SBA 7(a) Loan?

In most cases, it's up to your lender to decide how much equity, or down payment, to put down on an SBA 7(a) loan. The exception is that the SBA requires at least 10% for any applications involving a startup, a business acquisition, or a partner buyout.

What Banks Do SBA 7(a) Loans?

You might be surprised how many banks offer SBA 7(a) loans, but check to see if they are a preferred lender and what their program looks like. WaFd Bank offers a comprehensive approach to its SBA lending program, offering SBA 7(a) loans ranging from $2,500 to $5,000,000 and everything in between.

How Long Does It Take to Get Approved for an SBA 7(a) Loan?

Generally, it takes approximately 60 to 90 days from the time you submit a completed application to the closing and funding stage. Several factors can impact the timeline, including your responsiveness as the business owner and that of anyone else who may own the business with you when answering questions and providing additional information as requested. A responsive applicant often leads to a shorter turnaround time.

WaFd Bank is Here to Help

Our knowledgeable business bankers are available to help you manage success and have the expertise to become a trusted advisor to you and your team. With products that grow with your business and comprehensive tools to seamlessly manage it all, WaFd Bank is built for business. After over 100 years, we know what it takes to help you succeed, from start to legacy. Visit your local branch or give us a call at 800-324-9375 to experience the difference WaFd Bank can make for you.

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Loans subject to credit approval, terms and conditions may apply.