Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

August 20, 2019

What Business Owners Need To Know About SBA Loans

By Achim Neumann

As a business owner in America, it is important to know the possible financing options that are available for your company. Read on to find out about one of them, SBA loans.

What are SBA loans?

SBA loans are forms of financing available to small business owners from lenders such as banks, which are secured by the Small Business Administration (SBA). They can go as high as $5 million and come with significantly small interest rates not exceeding 10.25%, as well as longer repayment periods compared to most other financing outfits.

These loans are perfect for small business owners who are looking for the funds to expand their businesses with new locations, more employees and assets, or simply need to keep the cash flow going to cover an unusually large work order.

How can a business owner get an SBA loan?

First of all, before considering getting an SBA loan, a business owner has to be sure that the business is eligible to apply for the loan in the first place and has all the necessary documentation like tax returns both corporate and personal, financial statements for the business and the business owner, a historical documentation of loans taken, and a business certificate. A checklist with all the requirements can be found by visiting the SBA website. After locating all the documents, the business owner can choose from the approved SBA lenders and take in an application. Although most lenders abide by SBA guidelines, they also have their own specific criteria by which they consider loan applications.

What kinds of lenders offer SBA loans?

Primarily, SBA lenders are traditional banks. They have a lot of experience with processing SBA loans and if a business owner chooses the right bank, their lending staff can make sure the entire process is as productive possible. The downside to this is that choosing the wrong bank as an SBA lender can turn out to be a huge hassle. However, online SBA lenders have become more common and have made it possible to get SBA loans with more ease and in less time. There is zero bureaucracy involved with these online institutions and even though their requirements are much more stringent than those of traditional banks, requiring true proof of a strong business with good financial ethic, those companies who pass their tests get access to funds in record time, etc.

How long does it take to get an SBA loan?

An SBA loan application can take weeks to get approved. In some cases, it can take months. The length of time and chances of approval are typically directly correlated with the financial health and reputation of both the business and the business’ owner. Companies that have been in business for multiple years, have made profits and shown themselves to be credit-worthy are most likely to receive their loans in the quickest possible time.

If you run a strong business and are looking for a realistic opportunity that will help you take your company to the next level, then you should consider applying for an SBA loan. However, if your business is not profitable and is in fact struggling, you will not be able to get an SBA loan and probably should not apply in the first place. Also, if your business needs to focus on working properly instead of raising funds, then that should take priority over the time-consuming process of applying for an SBA loan.

If you have any more questions about SBA loans or for small to medium-size business financing, please don’t hesitate to reach out to us by clicking here, and let one of our financing specialists help you.

About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or

Comments are closed.

Any questions? Please contact us at 732-872-6777
Call Now

Client Testimonials

“I had been in touch with Karin and Gary from A Neumann & Associates regarding some opportunities and was looking forward to meeting with them. Hence, when they organized a seminar in Princeton, NJ, I was quick to sign up. The seminar was very informative as the team walked the attendees through various scenarios and referenced real life buying/selling situations they had been through. The sessions by Gary, Karin and Achim were crisp and focused and brought clarity to potential seller and buyers. I strongly recommend the team and look forward to continue working with them.”

Gaurav Tyagi

“Thank you for your Event on "How to value, Sell, and Buy A Business for Maximum Profit" and the insight into ANA’s approach on what is involved in the Business Exit for sellers. Garys Hervieiou's "Business Valuation", Achim's "Deal structure" presentation and Karin’s "Preparing the Package" are real street knowledge shared. They answered attendees questions which makes it more interesting for learning from others. Great for small businesses like us. The presentations were totally worth our time and travel for the event to Princeton, NJ from Rockville MD. Ravi Bhutani, President, CIPS”

Ravi Bhutani

“Gary, this is to thank you for an excellent job done in selling our business. We could never have done it without your professional expertise, dedication and time put in without reservation to make it happen. We will gladly and highly recommend you to anybody in our position.  It was a pleasure to work with you.”

Pat Iammatteo, Owner

“Your vetting is simply outstanding, among the best I've seen from a broker.”

Eric H., Investor

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Marc, who explained the process in detail. After meeting with Marc in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using to sell my business for max value. Working with Marc at A Neumann & Associates was very easy and professional. I did not know all that was going to be involved in selling my business but they helped me through the process. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. I highly recommend this firm to anybody who wants to sell now or down the road. Marc not only knows his stuff, but actually is a real nice guy.”

Double Diamond

“Used A Neumann & Associates to sale my business. could not imagine having done it with out the patience and experience Gary provided. Thanks Gary,”

Dennis Frazier

“Working with Marc and his company was a pleasure. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. Marc handled most of the interaction and he has one of the greatest demeanors. Again, it was a pleasure working with him and his firm.”

Douglas DiCeglio

“I recently completed an acquisition using A Neumann & Associates. Tony Valentino was very helpful and accessible during the entire process. They do a thorough job vetting both parties and got us to the finish line.”

Srini Mudambi

“Claus out of Florida helped us with the sale of our business. We had never done anything like this and him and his team walked us through the process from start to finish. We had some challenges through the process and Claus continued to show up even in the difficult conversations.”

Colby Harris, Co-Owner, Del Mar Designs

“Claus Madsen thoroughly helped us with selling our company. From the 1st introductory meeting explaining to us what was possible, to providing us with resources to assist with the sale. Claus was invaluable throughout the whole sales process. Claus was with us every step of the journey and always made himself available for any questions or issues that came up along the way. If you are interested in selling your business, I encourage you to reach out to Claus and the ANA team so that they can let you know what’s achievable. These guys will make it happen!”

Ron Harris, Co-Owner and Vice President, Del Mar Designs
view all testimonials

Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

call us now
Contact Us for a Free, Confidential Consultation

Experienced M&A Advisors available

Full Name
Email Address
Phone Number