When you’re a small business, obtaining funding to help your business expand is not always an easy task. That’s why the Small Business Administration (SBA) offers loans that are designed to help small businesses grow.
SBA loans typically offer more favorable rates compared to conventional loans. These SBA loans are guaranteed by the U.S. Small Business Administration and serve to help small businesses. Find out more about how this type of loan can help your small business in the Texas Gulf Coast.
Examples of Typical SBA Loan Uses
Businesses that meet certain SBA requirements can use the proceeds of their loan for various purposes. Consider these general examples of how you can use an SBA loan to fuel growth by supporting business operations.
- Business purchase
- Construction of facility
- Renovate, convert, or expand building
- Co-owner buy-out
- Equipment purchase
- Start business
- Acquire land
- Acquire and install fixed assets
- Acquire inventory
- Purchase supplies and raw material
- Refinance outstanding debts in certain situations
There are different types of SBA loans that each have their own criteria for the specific use of the funds. It’s important to be aware of the guidelines for “acceptable” or “prohibited” use of funds for the particular SBA loan that you apply for.
Typical SBA Applicants
Companies in many industries are good candidates for SBA loans. Some of the industries that can benefit from obtaining this type of funding include:
- Healthcare (e.g. medical, dental, and veterinary)
- Professional Services (e.g. CPAs and attorneys)
- General Service Providers (e.g. landscapers)
- Personal Care Services (e.g. gyms and salons)
- Specialty Trade Contractors
- Food & Beverage
- Supply Chain Logistics
- Fitness & Recreation
An SBA loan will be a better fit for companies in some industries compared to others. We encourage you to find out more about the opportunity to apply for this type of business loan to support your growth objectives.
SBA Loan Requirements
Our bank will help you determine if your business is eligible for SBA financing. We will review whether your business meets these basic qualifications:
- Business Size: Only “small businesses” are eligible as defined by the government. Requirements vary by industry and/or Net Worth and Net Income. For a full list of size requirements by industry, view this information on the SBA website.
- Business Type: Most business types are eligible, but they must be owner-operated, for-profit, and located in the U.S. Certain types are ineligible such as investment, lending, speculative, and gambling-related.
- Finances: Business applicants must meet minimum financial and background standards such as equity in the business or project, personal and business credit, criminal history, historical and/or projected revenues, net income, cash flow, and education and/or work experience.
Get Started on an SBA Loan
Texas Gulf Bank has helped many small businesses successfully secure SBA loans. To learn more about SBA loans, or to speak with a lender, call Texas Gulf Bank at 1-800-467-7216, email firstname.lastname@example.org, or visit one of our many local banking centers.
All loans are subject to credit approval. Your company needs to meet lender SBA loan-specific qualifications. It is best to have all of the documents and information required to apply collected prior to visiting with the lender. To view the SBA’s loan application checklist, visit their website to learn more. We will gladly assist you in this process.
Contact us today to experience the Texas Gulf Bank difference. We are committed to your growth.