SBA Loan

Unlock funding opportunities for your business.

What You Need To Know

The SBA, or Small Business Administration, is a governmental agency that has been conceived to provide support to upcoming entrepreneurs alongside new small businesses. Don’t be fooled, though – the SBA will NOT be providing a loan to you! They simply provide essential guidelines to lenders on how they can best support a business’ financial needs.

An SBA loan acts as a guarantee to both Monark (as a lender) and your business (as a recipient) that payments will always be made!

We get it – sometimes, your financial situation might change unexpectedly. This is especially true for new businesses as they become more established; it’s difficult to predict how a business will change in coming months, so it’s absolutely crucial to have some form of a safety net for the parties involved. When you apply for an SBA loan, you can benefit from a partial guarantee: the SBA will cover a portion of the repayment that you might not be able to.

How does it work?

There might be situations in which you can’t afford your monthly repayment amount or installments and usually, if you miss a payment, you’ll incur additional fees, charges or even penalties. An SBA loan can actually help you to avoid these risks – the SBA will make a payment on your behalf to ensure that the bill is paid.

This doesn’t just provide you with the peace of mind that other loans can’t, but it also provides the lender with an additional sense of security! The loan is deemed less of a risk, meaning that you may actually qualify for a higher loaned amount that traditional lenders would not consider you for.

Funding Amount

$100,000 to $5,000,000

Payment Terms

10 years or 25 years

You Get Funds

As fast as 2 weeks

Why choose an SBA Loan?

There are many reasons to use an SBA loan, though the primary benefit is that it will ensure that your bill will be paid in the event of your financial situation changing. Recipients of an SBA loan will only need to contact their lender, explaining the situation – from here, the SBA will make a payment up to a certain amount.

Another benefit of an SBA loan is that it helps to reduce the risk of lending to a business! When anyone applies for an amount of credit, they’re assessed on whether they are considered a ‘risk’ to the lender. If a lender has any concerns that the payments won’t be made, they’re much less likely to approve a loan.

An SBA loan can help to reduce this risk: the lender will understand that there is a guarantee in place, just in case a payment can’t be made, ensuring that they will receive the agreed repayment by the due date

This will make you more likely to be approved for lending, while reducing the risk of you incurring any unnecessary charges.

How much can you borrow?

If you choose to apply for an SBA loan with Monark, you could borrow anywhere between $100,000 to $5,000,000 – as these are considerably high-value loans, you should only submit your application if you’re sure you need the cash.

There are plenty of alternative options if you need a smaller amount of money up-front!

Credit Score

As low as 620

Time In Business

2 years minimum

Monthly Revenue

$5K (minimum)

When will you get the funds?

Applying for an SBA loan is a much longer process than other types of lending. Due to the nature of the guarantee, there will be a larger amount of time required for approval; as such, it’s essential that you have all of the documents on hand before you apply.

Applicants can expect to receive the funds in as fast as 2 weeks!

Payment Terms

Repayment terms also differ slightly from other types of lending that Monark can offer; your repayments will be either a 10-year term or a 25-year term. It largely depends on the amount of money that you’re looking to borrow, along with how much you earn on a monthly basis.

If you are interested or have questions about SBA Loans, please give us a call or fill out our contact form. We are always here to help!

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