Click on one of the questions listed below to view the answer.
Q. How does the program work?
A. The SBA guarantees a percentage of the loan, rather than actually
providing the money. With the SBA’s guaranty, lenders grant loans they may not
otherwise consider. Newtek provides you with the capital. As your lender,
Newtek processes and services your loan, answers your questions and maintains a
relationship with you over the term of the loan.
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Q. What can the loan money be used for, and for how long?
A. Whether you already own a business or you’re starting, expanding, or purchasing one, you can use the funds:
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To provide working capital. The term for these loans can be up to seven years.
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To purchase equipment, inventory, refinance, or acquire a business, and for
leasehold improvements. The term for these loans can be up to 10 years.
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To purchase real estate. The term for these loans can be up to 25 years.
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Q. How much can a business borrow?
A. Under Newtek’s SBA program, you can borrow from $25,000 to $2,000,000.
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Q. Can I finance equipment with SBA loan proceeds?
A. While SBA loans are ideal for small business owners who are looking for acquisition/start-up financing and operating capital, equipment is generally best financed through a lender that specializes in equipment loans.
For instance, Professional Solutions Financial Services focuses on the equipment financing needs of small businesses. Professional Solutions gives you exclusive privileges like a fast approval time and funding. When documents are in by noon,
approved
funding is typically sent via EFT that same day. Click here to learn more about
equipment financing from Professional Solutions..
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Q. What fees are involved?
A. The SBA charges a one-time guaranty fee that ranges from 2% to 3.75% of the loan amount.
All SBA loans are fully amortizing — there are never balloon payments. Newtek charges a
one-time packaging fee between $1,000 and $2,500, depending on the loan amount.
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Q. Is financing available to both start-up and existing businesses?
A. Yes. SBA's less stringent requirements for owner's equity and collateral and the longer
terms at better interest rates make the SBA an excellent option for both start-up and
existing businesses.
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Q. Can SBA proceeds be used for salaries, operating expenses or working capital?
A. Yes. Proceeds can be used to fund these items.
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Q. How does a business plan factor into the application process?
A. Because business plans are critical for start-up businesses, the SBA program requires
one as part of the application process. Newtek can help you write one.
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Q. How do you view student loans?
A. Newtek will consider loan applications from recent graduates using normal credit and underwriting standards such as sufficient equity injection, a good credit history, sufficient collateral and adequate business cash flow. In addition, recent graduates will need to be licensed by required boards and carry required insurance, if applicable.
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Q. How do you view below standard credit ratings?
A. While Newtek does look for strong personal credit ratings from all owners or guarantors of the loan, we will work with those who have below standard credit ratings to see if there are logical and sufficient reasons to explain the present ratings.
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Q. How do I get started?
A. You can fill out the Express Online Request to have a Newtek representative call you within one business day.
Or, you can call Newtek toll free at 1-888-392-8756 for straight answers and quick decisions.
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