Small Business Administration (SBA) loans are important funding sources for Florida businesses. The SBA assists local lenders in providing small businesses with loans ranging from $500 up to $5.5 million, making it easier for borrowers to secure the capital they need to succeed.
SBA loans are disbursed to business applicants through SBA partners such as local banks. In Florida, banks such as Seacoast offer local expert guidance to applicants who want to tap into this program.
Read on to learn about SBA loan eligibility, uses, requirements and FAQs.
The SBA sets guidelines for specific types of loans that its partner lenders administer. The SBA secures portions of these loans, reducing lenders’ risk and incentivizing them to loan to businesses that may have a hard time securing capital in other ways.
SBA loans differ from traditional loans in their accessibility and terms. Traditional loans are typically issued directly by banks and require strong credit, relatively robust cash flow and larger down payments or collateral.
SBA loans, on the other hand, allow for smaller and newer businesses to qualify more easily. SBA loans often come with longer repayment terms, require lower down payments and have capped, affordable interest rates.
Securing a small business loan in Florida can be challenging; for this reason, the SBA provides specialized programs designed to support business owners in accessing the capital they need.
The three main SBA loan programs are the 7(a) loan program, the 504 loan program and the microloan program. Seacoast Bank is a lender for the 7(a) program and the 504 program to Florida businesses.
SBA loans can apply to the majority of business purposes, including long-term fixed assets and operating capital, though some of the loan programs come with restrictions on the use of funds.
Common uses of SBA loans include:
To be eligible for SBA loans, borrowers must be a for-profit small business that operates inside the United States. The business owner must have invested some of their own equity—money and/or time—into the business, and must have exhausted the options for getting financing from other lenders.
To be eligible for an SBA loan, businesses must:
SBA loan documents that are typically required to apply for an SBA loan include:
To prepare for your SBA loan application, use Seacoast Bank’s SBA loan checklist. This resource outlines the essential documents and information you will need, helping you organize your materials and streamline the application process.
The general-purpose 7(a) Loan Program is SBA’s most prominent and popular program. This program is good for most business owners in Florida who are seeking an SBA loan. These loans provide Florida businesses with up to $5 million for wide variety of business uses. However, some of the sub-types of 7(a) loan programs carry restrictions on how funding can be used.
Among the uses for 7(a) loans are:
Many borrowers will qualify for 7(a) loans, although there are some complex eligibility restrictions. SBA loan forms required to apply for a 7(a) loan include:
The 504 Loan Program offers long-term, fixed-rate financing up to $5.5 million aimed at helping Florida small businesses expand or modernize. The 504 program provides an SBA loan for real estate and an SBA loan for equipment. These loans are intended to be used to:
Borrowers for SBA 504 loans in Florida must typically provide a down payment. They must also submit several documents:
Borrowers should work closely with their lenders to ensure they are getting the most appropriate SBA loan product for their needs and that they are following the right SBA loan application steps. SBA loan applications may be delayed or denied if they lack complete documentation or if their financial information is unclear or disorganized.
There are ways to strengthen your application to make SBA loan approval more likely:
Seacoast Bank offers local expertise and personalized support to Florida businesses interested in pursuing SBA loans in Florida.
Use our SBA loan application checklist to ensure you have all the necessary documents in order before submitting your application, including the required application forms.
Please note that applications must be submitted in person at a Seacoast Bank branch. Visit a Seacoast branch near you to learn more or to apply.
The SBA approves loans in up to 10 days, but the local lender will take extra time to initiate and finalize the loan application process.
Yes, startups can apply for SBA loans, particularly microloans and 7(a) loans. To succeed in getting a 7(a) loan, they must have a solid business plan, good credit history, a demonstrated ability to repay the loan and collateral, if required.
Collateral is not always required for SBA loans, especially smaller loans in the 7(a) and microloan programs. Larger loans typically require collateral.
Currently, Seacoast Bank requires SBA loan applications to be submitted in person at one of our branch locations. Please visit a Seacoast branch near you to begin your SBA loan application.
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