Updated: January 18, 2023 | By: LendVer Staff –
SBA or Small Business Administration loans can be a great, low interest rate financing option for small business owners. There are also a ton of SBA lenders to choose from that specialize in different things. The problem with almost all SBA lenders is that they focus on borrowers with credit over 700 who have above average businesses. This means most borrowers with lower credit scores don’t usually get to take advantage of one of the best loan programs available. Are there SBA lenders who provide financing to borrowers with lower credit? The answer is…yes!
We’ve located a lender that specializes in providing SBA loans to borrowers who have credit under 700 and in some cases even down to 600. The lender we outline below can often enable small businesses shutout from SBA financing, to access superior market loan terms.
Subprime SBA Loans
South End Capital is the lender that we’ve identified through our research that has a demonstrated track-record of assisting lower credit borrowers with SBA financing. South End Capital offers options to borrowers with less than perfect credit looking to access SBA financing. South End Capital is a direct SBA lender, but will leverage its loan marketplace to tap certain institutional lenders to provide SBA financing to borrowers it can’t finance directly or who won’t be considered by other conforming SBA lenders. The good news is that non-conforming SBA rates and terms are often the same bankable terms offered to higher credit business owners:
- Loans Sizes from $25,000 to $5,000,000
- Interest Rates from Prime + 2.75%
- Monthly Loan Payments
- No Prepay Penalty Options
- 10 to 25 Year Amortizations
- 600 Credit Minimum
- 1 Year Minimum Time in Business
- Few Restricted Industries
- Debt/MCA Consolidation
- Unrestricted Working Capital
- Construction Financing
- Nationwide Program
South End Capital has closed non-conforming SBA loans secured by most commercial real estate including land, golf courses, motels, funeral homes, self-storage properties, resorts and even oil refineries. The lender has also provided non-conforming SBA financing to borrowers with recent foreclosures and bankruptcies, past-due income taxes, no real estate collateral, and other difficult to overcome issues. Although South End Capital can provide SBA financing to businesses that normally don’t qualify, there are still many requirements that must be met for eligibility and financing approval is not guaranteed.
Conclusion
Just because you may have lower credit, weaker business cash-flow, your collateral may be special-purpose, or your use of proceeds unique; does not mean you cannot take advantage of the competitive pricing and terms offered under SBA loan programs. Be sure to partner with an SBA lender that has significant experience navigating the SBA loan process and can help your business grow.
Want to learn more about SBA loans? Contact South End Capital.