Latest news with #SBA-approved
Yahoo
19-05-2025
- Business
- Yahoo
KeyBank's SBA Loans Provide Capital To Fuel Small Business Growth
KeyBank's Small Business Administration (SBA) specialists work closely with business owners offering tailored and smart financing solutions aligned to their goals CLEVELAND, OH / / May 19, 2025 / Starting a small business takes a vision and resources that not every entrepreneur has at their fingertips. As the foundation of our communities, small businesses often require a full suite of financial of solutions* to meet their needs. That's why KeyBank's Small Business Administration (SBA) Specialists take the time to understand each business owner's needs and create tailored financial solutions that help them achieve their goals KeyBank's SBA Loans Put Businesses First As one of the nation's top SBA Preferred Lenders for over 20 years1, KeyBank offers a full suite of SBA loan programs, including the SBA 7(a) loan, the SBA 504 loan, the SBA Express Loan Program. We work closely with entrepreneurs to identify the right loan solution that fits their business goals, whether that's navigating ownership transitions or securing* growth financing to purchase new equipment, facilities, or inventory. With a fully dedicated SBA lending platform, from loan origination through closing, KeyBank ensures that business owners can efficiently access the capital* they need while receiving the highest level of service from our specialized SBA lending staff. The goal is to provide custom support to make accessing capital easier, faster, and more personal for small business owners at every stage of growth. "Getting capital* into the hands of more small businesses is a critical part of KeyBank's purpose of helping the communities we serve thrive," said Jim Fliss, National Manager of KeyBank's SBA Program. "These small businesses are the backbone of our economy and they have shown such resiliency in recent years. We are committed to helping more small businesses take advantage of the benefits the SBA lending programs have to offer." KeyBank's SBA Loans Make Real Impact SBA lending programs are pivotal to meeting the evolving needs of small business owners, and KeyBank's impact is evident in its reach. Since 2015, KeyBank has provided $2.8 billion in SBA-guaranteed financing to thousands of small business owners, with $1.2 billion financed within just the past four years.2 $11 billion in critical funding has also been dispersed through SBA-approved PPP loans.3 Visit more information. KeyBank's Commitment to Small Businesses KeyBank is committed to investing in the communities we serve by helping the businesses that power them thrive, and Key's continued growth reflects the real impact of that commitment. Complementing our industry-leading SBA offerings, Key is proud to be a true relationship bank that offers holistic financial solutions including treasury*, merchant*, and wealth management services for the company, the entrepreneur and the company employees. By emphasizing an advice-driven philosophy, KeyBank aims to strengthen relationships with business owners and help them achieve long-term success in an increasingly complex financial landscape. To learn more about how KeyBank can serve your business, visit CFMA #250513-3215228 1Source: U.S. Small Business Administration (SBA) from August, 1997 to October, 2024. 2 Source:Statistics released by the U.S. Small Business Administration (SBA) October, 2024 for total approved loans through the SBA's 7(a) lending program during the federal fiscal year ending 9/30/2024. 3 Source: KeyBank Doubles SBA 7(a) Lending Volume, Remains a Top Small Business Lender in the Country *All credit products, merchant services, treasury products are subject to collateral and/or credit approval, terms, conditions, availability and subject to change. SBA loans subject to SBA eligibility. View additional multimedia and more ESG storytelling from KeyBank on Contact Info:Spokesperson: KeyBankWebsite: info@ SOURCE: KeyBank View the original press release on ACCESS Newswire
Yahoo
28-04-2025
- Business
- Yahoo
How long does it take to receive an equipment loan?
It can take anywhere from one day to 90 days to get equipment financing, depending on the lender and type of loan Large banks and the SBA take the longest to fund equipment loans Submitting a complete application with the required documentation can expedite loan processing How long it takes to get an equipment loan can vary significantly, ranging from one day to 90 days based on the lender you choose and the type of loan. Since equipment loans are a frequent need for many business owners, you have many options from bank and online lenders to equipment manufacturers. Larger banks and SBA loans typically take the longest to get an equipment loan, though they offer the lowest interest rates. Online or alternative lenders may only take a day to get approved, but you will likely see higher rates than traditional banks. No matter which option you choose, spend time comparing lenders to find the best terms and rates for your business. You can get an equipment loan as fast as within 24 to 48 hours if you apply with the right lender and have all your business documents in order. However, funding timelines vary between the type of lender and loan. Funding timelines can range anywhere from one day for online loans up to 90 days for SBA loans. However, you may pay more in interest for the speed of an online lender compared to bank business loans. So, if you aren't in a rush for funding and qualify, an SBA or bank loan will often have a more competitive rate. Although banks and credit unions offer more competitive rates, they may take longer to fund an equipment loan. The entire process from application to funding could take as fast as a week or up to 30 days, depending on the lender. In general, the application may be more intensive and require more documentation than other lenders. And the underwriting process could take longer because many banks use humans to evaluate a loan rather than the underwriting software many online lenders use. SBA 7(a) and 504 loans have a typical funding time of 30 to 90 days. The Express loan is much faster since the SBA doesn't need to directly approve the loan. The Express loan timeline depends on the lender's usual process for approving loans, which can take a week or more. Some SBA-approved alternative lenders can get your equipment loan approved and funded much faster than the normal for SBA loans. Meanwhile, large national banks may take the full 30 to 90 days to fund your equipment loan. Online lenders can often approve equipment loans within 24 to 48 hours, making them the fastest funding option. Online lenders are also willing to work with startup businesses or business owners with bad credit scores of 500. Lenders like Taycor Financial and Triton Capital offer funding within a day — and Balboa Capital may be able to fund your loan on the same day you apply. No two lenders are alike, so you'll want to compare lenders' funding timelines along with their terms and rates. However, the process may take longer if the lender needs to inspect your equipment or you don't have the documentation required to submit when applying. If you apply for funding through an equipment manufacturer, you may be able to get your loan funded quickly. A manufacturer or seller usually has preferred lenders they work with. Like all equipment loan options, it will depend on the type of equipment and the seller itself. Although using an in-house financing option can be quicker, you may receive a higher rate due to the convenience. The process of getting an equipment loan is relatively straightforward. They are a common loan option for businesses of every size, so you should be able to complete the process in a few steps. Check the requirements. Every lender has its own eligibility requirements. For example, the lender may set a specific time in business, minimum credit score and minimum annual revenue that it requires to work with you. Confirm that your business meets or exceeds the minimum before applying. Compare lenders. In addition to general requirements, pick the best equipment loan based on each lender's fees, processing time and interest rates. Comparing and finding low rates and fees is essential to help you pay the lowest cost possible for your equipment loan. Apply with multiple lenders. Once you have a handful of lenders that you qualify for, complete the application. There are common business loan documents you will need to submit, and having these documents on hand will speed up the application process. Wait during the underwriting. Banks and SBA loans have a longer underwriting period than online or alternative lenders. You may need to wait anywhere from a few hours to 30 days for your application to be processed and approved or denied. Receive your loan funds. If approved, the lender will transfer the funds to your business bank account. This process may also take a few days, so keep up with your balance to confirm when your loan funds are available. Bankrate insight If you can't get equipment financing as fast as you would like or would like to research your options, you can find alternatives to equipment loans. You'll find benefits and drawbacks to every option, so research your options before applying to find the best fit. Organization and choosing the right small business lender will have the biggest impact on how long it takes to get an equipment loan. It can take anywhere from one day to 90 days to get an equipment loan, and banks and credit unions tend to take a week to 30 days. However, you may pay higher interest for fast equipment loans, while bank and SBA loans offer competitive rates. Compare your options with different lenders to find the best terms and rates available along with the funding timeline you need. How long after my loan is approved do I receive the money?It depends on the lender and how quickly your financial institution processes deposits. Typically, loan funds are available within one to two business days of the lender depositing the funds. However, your bank may take up to a week to process large deposits. What does an equipment loan cover?Equipment loans typically allow you to purchase new or used equipment with the loan funds. The loan is backed by the equipment as collateral, so you'll likely be limited in how you can use the funds. How long is the average equipment loan?Equipment loan terms often range from one to five years. However, you can find some equipment loans that offer terms up to seven years. If you need longer terms, you may be able to get a standard term loan which offers terms up to 10 years or longer. Sign in to access your portfolio
Forbes
28-04-2025
- Business
- Forbes
Rolling Back Biden Era SBA Rules Isn't Enough, SBA Must Also Modernize
SBA administrator Kelly Loeffler, center, looks at a submarine being manufactured at GSE Dynamics in ... More Hauppauge, New York, on April 24, 2025. (Photo by James Carbone/Newsday RM via Getty Images) The Small Business Administration (SBA) has announced it will eliminate a package of Biden- era policies that dramatically reduced underwriting standards within the 7(a) loan program, which the Trump administration maintains sacrificed its financial integrity and drove up taxpayer liability. As discussed below, the SBA also needs to focus on much-needed technology and underwriting updates. The agency's SBA 7(a) loan program guarantees a portion of a loan made by an approved SBA lender to a small business. The agency guarantees up to 85% of loans of $150,000 or less, and up to 75% of loans greater than $150,000 (with the maximum loan amount being $5 million.) SBA 7(a) loans are designed to help small businesses access financing for various business purposes. Made through SBA-approved banks and other lenders, the loans are known for their flexibility, allowing small businesses to use the funds for a variety of purposes, such as: The SBA itself does not lend money directly to borrowers. Lenders play a crucial role in the program, both in processing loan applications and in managing the loans after they are funded. The agency says it is 'restoring robust rules to end the era of reckless lending – preserving access to capital for America's small business owners and safeguarding taxpayer dollars,' according to an April 22 press release. 'The last Administration inherited a thriving 7(a) loan program but left it in critical condition – dismantling every common-sense guardrail that kept it solvent and self-sustaining,' said SBA Administrator Kelly Loeffler, adding that the agency is acting to 'restore prudent lending criteria, rein in risk, and save the 7(a) program before it collapses under the weight of bad policy.' The Trump administration wants to set the bar a little bit higher by upping lender fees, which cover the costs of borrower defaults. This is important because the 7(a) loans provide government-backed capital from private lenders for qualified small businesses that are likely unable to borrow elsewhere. However, in doing so, the SBA is required to operate at 'zero-subsidy,' and historically pays for itself through lender fees. However, the Biden Administration eliminated lender fees and adopted an underwriting standard known as 'Do What You Do,' which erased longstanding lending criteria and enabled lenders to approve underqualified borrowers for government-guaranteed loans. The result? The lending program saw a rise in defaults and delinquencies, which the SBA was unable to cover due to decreased fee income. By 2024, the 7(a) loan program had a negative cash flow of about $397 million – the first instance of negative cashflow in 13 years. 'The Biden-Harris administration's failure to respect public funds left taxpayers on the hook for $400 million last year, the first negative cash flow since 2011 – during the Obama Administration. These new efforts completely realign the SBA's vaunted 7(a) program with responsible lending practices, safeguarding taxpayer dollars and ensuring the lending program's long-term viability for American small businesses and entrepreneurs.' Last month, the SBA took aggressive action to stop the bleeding and restore lender fees within the 7(a) loan program. The new SOP 50.10.8 will reject the 'Do What You Do' underwriting rules and revert lending criteria to the higher, pre-Biden standards. Additionally, the new rule will reinstate and streamline the Franchise Directory to help lenders determine whether certain businesses are eligible to receive an SBA loan. The Biden administration wanted to do as many loans as possible. While the intentions may have been noble, the result was that loans became too easy to get, in large part due to its mandate to pursue DEI goals. Ultimately, the overall performance of the 7(a) program deteriorated. This week, I met with the Small Business Committee in the Congress and discussed Biden era SBA lending policies. When loans come too easily, you get bad actors, and that hurts SBA lending overall. For instance, with microloans, non-performing assets jumped up from 1% to close to 5%. By eliminating the lender fees, the SBA suffered the losses. Throughout its history dating back to the Eisenhower administration, the SBA has helped fuel the American Dream of entrepreneurship and the U.S. economy as a whole by empowering job-creators with the resources and support they need to start, grow, and expand their businesses and/or recover from a declared disaster. However, the agency is not as efficient as it can and should be. Improving SBA lending criteria and technology will benefit small businesses dramatically by making it less painful to secure capital, which is the life blood of any growing enterprise. In speaking with officials in Washington, I've told the current administration that they need to move away from tax return-driven underwriting and instead focus on cash flow-based underwriting. That's what fintechs have always done; it's the biggest change happening in lending today. Small businesses have become more asset-light. They need more working capital rather than long-term loans. The problem is that the SBA cannot figure out a way to underwrite working capital loans. The best way to underwrite working capital loans is by examining cash flow data at any given point of time by looking at monthly statements and quarterly statements. Unfortunately, the government is slower to move than the private sector is. The good news is that Trump administration is trying to revamp SBA lending. Reinstating the lender fees that cover bad loans is a first step. Regardless of who is in office, the government needs to digitize the process, thereby making it faster and reducing lender risks with greater focus on data analytics to make better informed lending decisions. This will lower the cost of processing loan applications and reduce the time it takes to underwrite these loans. Business owners often look to borrow money because they need it fast. Meanwhile, SBA loans take the longest time of all types of funding because so much government-required paperwork is involved. When interest rates climbed higher during the Biden administration, the arbitrage between an SBA loan and other types of small business loans went down. SBA loans required so much paperwork that the process became painful, and government standard operating procedures have not been changed in the last 30 years. Related: Digitization Of Small Business Lending Helps Fill The Lending Gap Current SBA officials realize that it overdue for technology upgrades to reduce the cost and the time both for these loans, and to provide a better customer experience. Upgrading technology will enable SBA lenders to conduct important ongoing portfolio monitoring. They haven't modernized in decades, and the time to do it is now.
