What is the Approval Process?
Several different factors are considered when approving a Small Business Administration (SBA) loan. 1st Source Bank has certain credit policies that must be met, but in the case of an SBA loan, some of those requirements are relaxed. We still need to meet all SBA credit and eligibility requirements, but your 1st Source banker is trained to guide you through the process and advocate for you.
How does the application process work?
You can apply online, over the phone or in person. We’ll make the process as convenient and hassle-free as possible for you. Make sure you discuss your specific needs with your banker, so they understand those needs and offer the best guidance.
Is collateral required?
SBA loans are designed to help small businesses gain access to financing when it might not otherwise be available. The SBA is very flexible about collateral. The requirements depend on the specific SBA loan and both the amount and purpose of your loan. Most often, only collateral that is available to be pledged is required for loan approval.
Will poor personal credit history prevent me from getting an SBA loan?
It depends. The credit history of the business owner(s) is one of the many factors considered during the underwriting process. It’s an important consideration because the bank and the SBA must be reasonably assured that the loan can be repaid. If your loan is not approved because of a low personal credit score our bankers will work with you to help make the needed improvements to ensure a positive outcome the next time you apply.
How long before I can access my funds?
It varies, depending on the loan amount, the recommended SBA program type, and the purpose of the loan. Since we are a preferred lender, the SBA process adds only about two additional days to our standard process for conventional loans. As soon as we get the information from you we move the application forward as soon as possible.