What are SBA Loans?

Defining SBA Loans   An SBA loan, contrary to what the name might suggest, is not a loan from the SBA directly. Rather, what you get with an SBA loan is a more traditional loan but one that is partially backed by the government. For instance, let’s say you go to...

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Alternatives to an SBA Loan

What to Do If You Are Unable To Get an SBA Loan   Due to the restrictions, the requirements and the overall process, SBA loans can be quite challenging to get. Many have tried, but ultimately are unable to procure SBA funding. Don’t be discouraged! There are...

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Small Business Administration loans better known as SBA Loans are loans made by lenders to small businesses which are submitted to the Small Business Administration to receive a government guarantee for the loan. The SBA does not lend money to businesses. However, to entice lenders to provide enterprises with longer-term loans and increase the chances that companies will not fail due to undercapitalization, the Federal Government delivers these guarantees to lenders. If a company defaults on the loan, the lender is guaranteed up to 85% of the loan value.

SBA Loans are not more difficult to get than other long-term loans, but for lenders, it is a go-to if possible due to the guarantee against default. This guarantee allows lenders to give otherwise unfavorable or riskier (to the lender) loans to businesses which include lower rates for more extended periods.

There are a few different types of SBA Loans that lenders can provide depending on the business’s situation.

The most common and newest SBA Loan that First Union Lending offers is the Express SBA Loan which is the fastest of the SBA Loans to fund and requires the least amount of effort to get. Express SBA Loans can close in 1-2 months and require a minimum of $5,000 in business collateral unlike its older brother the SBA 7a which can take up to 6 months to fund and require enough collateral to secure the entire amount of the loan.

Express SBA Loans can range from $20,000 to $350,000 for up to 10 years with an average interest rate of 7.5% APR.

At First Union Lending, unlike traditional banks, most of the process is handled by our technology which means that the process is much easier and faster for the borrower. Within 10 minutes of a borrower submitting minimal documentation, which consists of our one-page application and two years of business tax returns, First Union Lending will have a pre-approval or denial and terms your SBA Loan.

The rest of the process is seamless, and First Union Lending will walk you through it step by step until funding.

SBA Loans can be used for the following:


  • Debt Consolidation – Take multiple existing debts and convert them into one long-term note,
    with one monthly payment.

  • Working Capital – Use the proceeds from an SBA Loan to take care of payables,
    by new inventory, payroll, and equipment.
  • Expansion Capital – Use the SBA Loan to expand your current operations, whether hiring new employees,
    opening a second location or expanding the current one.
  • Improvements – Your restaurant or store looking a little shabby, use the SBA loan to buy new furniture, refinish the bar and add a fresh coat of paint to make your place look like new again.

At First Union Lending, we make the process super simple and fast. If you pass our initial qualifications, there is a 90% chance of completing the process and having the loan fund.

Want to find out if you qualify for an SBA Loan? Give us a call or fill out the form below.