INELIGIBLE USE OF PROCEEDS
There are certain restrictions for the use of SBA loans. The following is a list of purposes which SBA loans can not finance:
AVAILABILITY OF FUNDS FROM OTHER SOURCES
The Federal Government does not extend credit to businesses where the financial strength of the individual owners or the company itself is sufficient to provide all or part of the financing. Therefore, the utilization of both the business and personal financial resources is reviewed as part of the eligibility criteria. If business and personal resources are found to be excessive, the business will be required to be use those resources in lieu of part or all of the requested loan proceeds.
How It Works
Once a small business borrower meets the lender’s requirements for credit, the lender may request a guaranty from the SBA through SBALowDoc procedures. It’s a quick, two-step process:
The borrower completes the front of the SBA’s one-page application, and the lender completes the back.
The lender submits a complete application to the SBA and receives an answer within 36 hours.
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