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RE: Main Street Lending — SBA Loans · Loan Summary

Loan Summary

SBA Loans.

Lower-cost capital backed by the Small Business Administration.

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— At a glance

At a glance

$50,000 to $5,000,000+
Loan size
Up to 10 years for working capital, up to 25 years for real estate
Term
Best for
Established businesses with strong credit and a clear long-term need
Repayment
Fixed monthly principal and interest over the SBA term
— What it is

What it is

The two most common programs are the SBA 7(a) loan, which can be used for working capital, expansion, equipment, refinance, and partner buyouts, and the SBA 504 loan, which is purpose-built for owner-occupied real estate and large equipment purchases. Approval requires Main Street, your business, and the SBA all to underwrite the deal, which is why the process takes longer than non-SBA options. Our SBA team handles the file end to end.

Main Street is an SBA lender. SBA loans are issued by approved lenders and partially guaranteed by the U.S. Small Business Administration, which lets us offer longer terms and lower monthly payments than we could on a conventional loan of similar risk. SBA financing is often the lowest-cost option for established small businesses with strong credit and a clear use of funds.

— Pros and cons

Pros and cons

Pros

  • Often the lowest payments and longest terms available to small business
  • Wide range of allowed uses, including refinancing higher-cost debt
  • Available for owner-occupied commercial real estate and major equipment
  • Strong fit for acquisitions and partner buyouts

Cons

  • Documentation and underwriting are heavier than on other products
  • The SBA itself underwrites in parallel, which adds steps the lender alone does not control
  • Personal guarantee and often collateral required
  • Stronger credit profiles needed than on short-term products
— Documents we'll ask for

Documents we'll ask for

  • Two to three years of business and personal tax returns
  • Year-to-date financial statements (P&L and balance sheet)
  • Six months of business bank statements
  • Personal financial statement for each 20 percent or greater owner
  • Business debt schedule and use of funds
  • Articles of organization or incorporation and operating agreement
— Common questions

Common questions

What does the SBA underwriting process look like?

SBA closings take longer than non-SBA loans because the SBA itself underwrites in parallel with the lender. We are an SBA lender, so the underwriting and credit committee sit on our side of the table, and we set a realistic expectation for your file when we open it.

Do SBA loans require collateral?

The SBA requires lenders to take available collateral up to the loan amount. For working capital loans, that often means a UCC-1 lien on business assets and a personal guarantee. Real estate loans are secured by the financed property.

Can I use an SBA loan to refinance higher-cost debt?

Often yes. SBA 7(a) is frequently used to refinance high-cost short-term debt when the borrower qualifies and the refinance produces a meaningful payment reduction.

Are there fees on top of interest?

SBA loans include guaranty fees and standard closing costs. We walk you through the all-in cost of the SBA offer so you can compare apples to apples with other options.

— Related products

Term loan

A traditional installment loan from Main Street with a clear amortization schedule and predictable monthly payments.

Line of credit

A revolving credit line from Main Street you can draw from, repay, and reuse as you go.

Equipment

Finance trucks, machinery, kitchen equipment, medical and dental gear. The equipment secures the deal.

Signed by Main Street Lending LLC

Est. 2019 · The lender on your block

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