What are the SBA loan Eligibility Criteria?

1. For-Profit Business: Your business must operate for profit. Non-profit organizations are not eligible.
2. Meet SBA Size Standards: The business must meet the SBA’s size requirements, which vary by industry. Generally, this means being classified as a small business according to SBA definitions.
3. Invested Equity: Owners must have invested their own time or money into the business.
4. Exhausted Other Financing Options: Applicants must demonstrate that they have sought and been unable to obtain funding from other sources before applying for an SBA loan.
5. Business Operations: The business must operate in the United States.
6. Good Credit: A personal credit score of 650+ is often recommended for approval, and the business should be profitable.
7. Approved Uses of Funds: SBA loan funds can be used for land, equipment, inventory, renovations, working capital, and debt refinancing, but not for owner compensation or dividends.
8. Documentation: Applicants should be prepared to provide financial statements, tax returns, business plans, and other supporting documents.

Certain industries and business types may be excluded, such as those engaged in illegal activities or speculative investments.

Check out this article for more details. Understanding the SBA Requirements for Loans.