As a preferred SBA lender, National Small Business Week is an important time for me to recognize everything small businesses do for our communities. Whether it’s a one-woman legal consulting business or a 400 employee manufacturer, small businesses play a significant role in our state and national economies. In fact, according to the Small Business Administration, there are 28.8 million small businesses in the United States, accounting for 99.9 percent of all businesses. The percentage is similar in Iowa, where 266,384 small businesses make up 99.3 percent of our state’s businesses.

Despite these large numbers, many businesses owners do not realize the benefits they’re entitled to as a small business – particularly in understanding who can qualify for SBA loans. In general, the small business size defined by the SBA is:

  • For most manufacturing businesses, qualifying companies must have less than 500 employees.
  • For most wholesale businesses, they must have less than 100 employees.
  • For most retail businesses, average gross sales cannot exceed $7MM.

Does one of these three definitions match your small business?

who qualifies for SBA loans infographic with small business statistics

Reasons to Use an SBA Loan

Whether you’re just starting your business or have been operating successfully for years, there are many reasons to take advantage of an SBA guaranteed loan. In fact, lots of small business owners use SBA guaranteed loans because they can offer more flexibility than conventional financing. With benefits such as longer repayment, lower down payment and flexible repayment options, you can see why major companies such as Apple, Nike, Ben & Jerry’s and Under Armor used SBA guaranteed loans in their infancy.
SBA loans are great for business owners who want to:

  • Buy an existing business.
  • Expand their physical location.
  • Need equipment for their business.
  • Have longer or flexible repayment terms or lower down payment.
  • Increase their inventory or term out stale line of credit balance.
  • Build credit for the future.

Consider your business goals for the next year, five years, or even 10 years. Would an SBA guaranteed loan help you reach your objectives?

Learn more about SBA lending in my article Nine Myths about SBA Loans or view our other Small Business articles here on the Bankers Trust Education Center. Or, contact me to discuss how this type of loan can help your business.