GET STARTED

FIRST THINGS FIRST

Applying for an SBA loan is generally more complicated and time consuming than applying for a regular business loan.  Fortunately, at Peoples Bank, we guide you through the whole process, striving to make it as straightforward and simple as possible.

The first (and best) step is contact us to learn more about SBA loans and how we can help you with your application.  Unlike many offering SBA loans, we are not a broker.  We are a bank.  We are a bank with real people, who answer the phone.  We encourage your call.

WHAT YOU NEED TO GET STARTED

Most of the documents you’ll need to provide in order to apply for an SBA loan are things that you would need anytime you apply for a standard small business loan.  Things like:

  • Bank Statements

  • Business and Personal Tax Returns

  • Balance Sheet

  • Profit & Loss Statements

  • Proforma (Projections for next three years)

  • Business Plan

  • Valid government issued photo identification

 

In addition to these items, there will also be SBA-specific forms required. Such as:

  • SBA Borrower Information Form

  • SBA Personal Financial Statement Form

  • IRS Transcript of Tax Return Form

 

Once Peoples Bank approves your application, contingent upon SBA approval, additional documentation may be required.  Items like:

  • Title Insurance

  • Appraisals and/or Business Valuation

  • Information about affiliated businesses

  • Environmental questionnaire

 

All of the documents listed above do not constitute an exhaustive list. Additional information will most likely be required, depending on the nature and complexity of the request.

THE SBA PROCESS 

 

The process for obtaining an SBA loan through Peoples Bank works like this.

 

1

 

You provide us with the initial information we need to do a preliminary check of whether or not your business is a candidate for an SBA loan. 

 

2

 

We will furnish you with a list of the documents we need to underwrite your loan internally.  Once we have the necessary documentation and information, we will approve (contingent upon SBA approval) or deny your request. After receipt of all initially requested documents/information, we will usually have an answer as to our bank’s contingent approval or denial within a week.

 

3

 

If your loan is approved, contingent upon SBA approval, we will begin the process of submitting your application for SBA approval.  This process generally involves back and forth information sharing between you and our SBA loan specialist, as we complete the required application material to be submitted to SBA.

 

4

 

Upon receipt of all required documentation and information we will submit your application to SBA for approval.  Depending on the nature and complexity of the request, the approval time from SBA generally runs between 30-45 days from the time we submit your application to them.

 

5

 

Upon receipt of Authorization from SBA, we contact you to schedule a closing date.

 

The overall time it takes to go from initial inquiry to closing depends on several factors.  It is our experience that applicants are rarely waiting on us.  The faster you get requested documents/information to us, the shorter the start-to-finish time will be.

 

 

TYPES OF BUSINESSES ALLOWED BY SBA 

SBA loans are not for everyone.  The SBA (7a) program exists to help businesses that typically do not meet standard bank policy underwriting requirements. So, if you have the capacity to meet all of the underwriting requirements of a bank’s standard small business loan, then SBA may not be for you.  If you aren’t sure, feel free to contact us to find out.

In additions to having a demonstrated financial need, applicants must be:

  • A for-profit business located within the U.S. or its Territories.

  • The primary owners of the business must be U.S. citizens or permanent legal residents

  • Considered a small* business

 

*SBA has restrictions on the size of a business. The size standards for business eligible for an SBA loan depends on the type of business, as defined by the North American Industrial Classification System (NAICS) Code.  While the size standards are pretty generous, this is something we can determine for you quite easily on the front-end.

 

Additionally, as part of their stated guidelines, there are some types of businesses that do not qualify for an SBA guarantee, regardless of their underlying financial strength or weakness.  Ineligible businesses include the following:

  • Non-profit

  • Financial businesses

  • Non-owner occupied commercial real estate 

  • Passive business (Some exceptions are allowed) 

  • Life Insurance Company

  • Pyramid sales distribution plans

  • Legal gambling businesses

  • Businesses limiting access (Private club)

  • Government-owned businesses

  • Businesses engaged in teaching religious beliefs 

  • Sexual oriented businesses

  • Businesses engaged in political or lobbying activities 

  • Speculative businesses (I.E. Real estate development)

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© 2019 Peoples Bank SBA

 

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