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SBA Loans

SBA Requirements

Documentation requirements may vary; contact Southside Bank for specific information you must supply.

Common requirements include:

  • Purpose of the loan
  • History of the business
  • Financial statements for three years (existing businesses),
  • Schedule of term debts (existing businesses),
  • Aging of accounts receivable and payable (existing businesses),
  • Projected opening-day balance sheet (new businesses),
  • Lease details,
  • Amount of investment in the business by the owner(s),
  • Projections of income,
  • Expenses and cashflow,
  • Signed personal financial statements and personal resume(s).

What type of interest rate, terms and fees does the SBA require on its Guaranty Loan Program?
Your loan-repayment schedule depends on the use of the proceeds and the ability of your business to repay. The general terms are five to ten years for working capital; and up to 25 years for fixed assets such as the purchase or major renovation of real estate or the purchase of equipment (not to exceed the useful life of the equipment). Both fixed and variable interest rates are available. The interest rate is negotiated between the borrower and the lender/bank. However, lenders generally may not charge over the maximum rate of 2.25 percent over the lowest prime rate for a loan with a maturity of less than seven years and 2.75 percent over prime for a maturity of seven years or longer. For loans under $50,000, the lender's rate may be slightly higher.

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