SBA financing sources
 

 

FAQ (Frequently Asked Questions)

 

1. Why do you not list the borrowers name or business name in the database?

To make sure they are not contacted directly about their loan.  We feel that having the city, the type of business, loan amount and terms and the bank that did the loan should be sufficient information.

2. Why should be purchase this on this website instead of going directly to the SBA or USDA Rural Development?

You're more than welcome too.  If you don't mind paying at least ten times as much for the information, waiting for a week or two to get it, not being able to charge the transaction and having to export it to another format to make it usable, it is your perogative.

3. How old is the data that we are purchasing?

Usually  not older than ninety days old for SBA loans, the USDA Rural Development database is usually year end of the previous year.

4. Why is this as a pdf file and not an Excel spreadsheet?

There are too many versions of Excel on different platforms to be assured that all computers and operating systems could view the document.  Almost all computers have Adobe Reader (If you do not have Adobe Reader click here to download the latest version of it).  The document can be resized and adjusted to be able to view all columns and information.

5. What format is the database?

It is saved as in a 2004 Excel format. Most people will be able to view this.

6. Can I view this with a Mac?

Yes. You should be able to view the .xls format although the default format for a Mac is .xlsx.

7. Can I purchase this from the SBA?

Yes. You can contact their FOIA (Freedom Of Information Act) officer which can be located on the SBA (www.sba.gov) website. Be prepared to pay much more for the data and wait for weeks if not months to receive it on a CD. It also will not come in multiple sorted categories such as available with the purchase.

8. Can you send this to us in another format if we can not view the file?

Yes. We will make every attempt to get to you a format that your computer will recognize.

9. What does showing the amortization indicate?

If you have a longer amortization period (20-25 years) it should indicate that it is a real estate backed loan. If you have a shorter amortization period (5-10 years) it should indicate that it is either a business only, equipment, inventory or working capital loan.

10. Why do they call it an SBA loan if SBA does not lend the money?

Because the loans which are done by banks and non-bank lenders are guaranteed by the SBA (Small Business Administration)

11. Which is better, an SBA or a USDA Rural Development loan?

They both have advantages and disadvantages. USDA Rural Development (B & I) loans are generally not available in cities where there are more than 50,000 residents. Preferential treatment is given to areas where there are less than 25,000 residents. SBA is available nationwide in all States, counties and cities. USDA Rural Development loans frequently have a longer amortization period (up to thirty years, compared to 20-25 years with SBA) regarding transactions with real estate.

12. You list construction projects. Are these the banks that lent money for the construction or for the permanent financing?

In some cases it is both, but frequently it is the lender that did the permanent or take-out financing.

13. How can I find a contact at a bank that might be listed?

The corporate headquarters should be listed. You can also call the local SBA offices (there is a link on the site with local contact numbers) and you can call them for contacts at the respective banks.

14. What can SBA loans be used for?

Please refer to the SBA page specifically address what proceeds may and may not be used for. http://www.sba.gov/content/use-7a-loan-proceeds

15. Can SBA loans be used for investment properties?

In general, no.

16. What is the significance of dealing with a PLP (Preferred Lender) or a CLP (Certified Lender)?

The most active and expert lenders qualify for the SBA's streamlined lending programs. Under these programs, lenders are delegated partial or full authority to approve loans, which results in faster service from SBA. Preferred lenders are chosen from among the SBA's best lenders and enjoy full delegation of lending authority in exchange for a lower rate of guaranty. This lending authority must be renewed at least every two years, and the lender's portfolio is examined by the SBA periodically. Preferred loans account for more than 10 percent of SBA loans. Certified lenders are those who have been heavily involved in regular SBA loan-guaranty processing and have met certain other criteria. They receive a partial delegation of authority and are given a three-day turnaround by the SBA on their applications (they may also use regular SBA loan processing). Certified lenders account for nearly a third of all SBA business loan guaranties.

17. Can the SBA deny me a loan because I have no collateral?

Repaying the loan from the cash flow of the business is a primary consideration in applying for an SBA loan, but the borrower's character, management abilities, collateral and the equity into the transaction are also factored into the underwriting process. The actual lender can have more conservative lending guidelines than what is indicated in the SBA's SOP.

18. What is the interest rate on an SBA loan?

The SBA does not set what the interest rate would be on a loan, only the maximum that a bank may charge. The lender and the borrower actually negotiate the rate. For more information, visit the following link: http://www.sba.gov/financing/subfiles/7a_interest_rates.html

19. Do you have to be turned down for a conventional loan in order to apply for an SBA loan?

No. This is a rumor.

20. Do SBA loans take longer to approve than conventional loans?

No. This is a rumor. An SBA loan is approved by a bank. These same banks approve conventional loans. An SBA loan can take longer when there are morals issues (prior arrest records) and environmental issues.