In the past couple of weeks, we have released two installments of our series, “SBA Loans – A Comprehensive Guide for Somerville National Bank’s Current and Future Clients”. In these installments, you have been provided with basic information pertaining to Small Business Loans and a loan application checklist for the most basic of SBA Loans, the “General SBA Loan: 7(a)”. This week, we will outline the eligibility requirements for the 7(a) Loan Program. Somerville National Bank has numerous branches in the State of Indiana and Ohio. Should you need assistance in determining if you are eligible for the 7(a) Loan Program, we encourage you to visit or call one of our branches. At the end of this brief installment, you will be provided with direct contact information.
Eligibility for the 7(a) Loan Program
SBA Loans are provided, ultimately, by the Small Business Administration through a banking institution, such as Somerville National Bank. The loans are provided to various types of businesses; therefore, the eligibility requirements are based on certain aspects of the business, as well as the principals associated with the business. The top determining factors include the way in which the business receives an income, the characteristics associated with the ownership of the business, as well as the region or area in which that particular business performs its operations. According to the Small Business Administration, to be eligible for the 7(a) Loan Program, businesses must:
- Qualify as a “small business” as outlined by the Small Business Administration.
- Operate in which a way that profits are received.
- Operate or propose to operate within the United States.
- Have a reasonable level of equity already invested in the business.
- Have used other types of financial assets to fund the ownership and operation of the business prior to reaching out for financial assistance.
- Be able to successfully outline why the financial loan is required and how the loan will, ultimately, be utilized.
- Must outline that the funds obtained from the 7(a) Loan Program will be used for the purpose and intent of a business purpose that is considered to be “sound”.
- Must outline the fact that the business does not currently possess any type of debt or financial-based obligations to the Government of the United States.
As you can see from the information contained in this installment, the eligibility requirements associated with the SBA 7(A) Loan Program are very reasonable. In fact, many businesses consider this to be the easiest type of loan to obtain when additional funding is necessary. At Somerville National Bank, we pride ourselves in having a high approval rate when it comes to Small Business Loans. If you want to start a business or fund a business that is currently in operation, you may visit one of our branches or call us to discuss the application process. We serve both the State of Ohio and the State of Indiana. Be sure to visit next week for Part 4 of our series. To contact us today, simply dial: 513-726-6471