SBA Loan Calculator: How Much Can Your Small Business Take Out & Better Loan Options

Why is it so hard to find cash when you know your idea is out of this world? It just is, and you’re not alone. Most small businesses struggle to access the funding and capital they need to scale and succeed. In fact, just during the pandemic, about 4 in 10 small business owners haven’t obtained any capital in the form of loans or lines or credit.

With nearly 32 million small business owners in the country, that means that almost 8 million of them haven’t been able to access capital in the past two years. That’s insane! We believe in you, and we know you believe in yourself. Often, the issue is either a) the background and credit checks needed to get debt funding investors on board or b) the idea of paying the money back in installments after you’ve secured the funding.

At Wealth Stack, we’ve created an ecosystem within our platform where you can access not only our in-house investment banker for expert advice on how to increase the value of your business but also find the right investors you need to help you access alternative sources of capital. 

However, while you’re waiting to join our platform, you can also look into an SBA loan from Lendio here: Access Capital form Wealth Stack Lendio  . Loans from the Small Business Administration are called SBA 7(a) loans, and here’s what you need to know about them.

Already know you’re ready to start increasing the value of your business and accessing alternative forms of capital through Wealth Stack Veteran Capital Access Platform? Apply here.

What is an SBA 7(a) Loan?

The SBA 7(a) program is a government-backed financial lending program for small businesses. This especially includes those owned by women and minorities, as well as other economically under-served entrepreneurs.

While there are many loan types offered through the SBA program, such as microloans and disaster loans, the main point you want to understand is that these loans are geared towards providing access to capital for brand new business owners and business owners who have been deemed as “weak” as a borrower (whether due to a lack of credit history, a poor credit score, prior bankruptcy, etc.).

All loans taken out through the SBA 7(a) program are at least partially offered by private lenders, too. This incentivizes certain lenders and investors to work with underserved minority groups and small business owners who need access to the cash in order to fund really great business ideas and movements.

Already know you’re ready to start increasing the value of your business and accessing alternative forms of capital through Wealth Stack? Apply here.

Requirements for an SBA 7(a) Loan

There are no real strict requirements for an SBA 7(a) loan. It appears that the SBA truly wants to look at every applicant on a case by case basis. That way, they’re accurately determining who should get loans and who shouldn’t. That being said, you do need to prove some basic things. Those include proof that you:

  • Will be doing business within the United States
  • Need the funding
  • Have a well planned out business proposal (or, at the very minimum, a business proposal in general)
  • Have previously tried to fund your business through other means and it hasn’t worked out

That’s it, really! Most small business owners meet these basic requirements. And if you don’t, it’s worth still contacting the SBA to chat about your options.

Other than that, though, there is one more thing you can do to help increase your chances of being approved for an SBA 7(a) loan. They love to give out loans to people who are opening small businesses (hence the name of the agency!). The term “small” can mean different things in different industries. In general, it’s any business that employs fewer than 1,500 employees and has less than an annual revenue of about $38 million.

Already know you’re ready to start increasing the value of your business and accessing alternative forms of capital through Wealth Stack? Apply here.

SBA Loan Calculator: What’s the Maximum You Can Borrow?

If you want to cut to the chase and see how much you can borrow, check out the handy SBA loan calculator tool here. However, we can provide you with the actual number right now:

The maximum amount you can borrow with an SBA 7(a) loan is $5 million. If you decide to borrow the maximum amount, the SBA will fund $3,750,000 of the loan and a private lender will cover the rest. 

Don’t need that much of a small business loan? No worries! You can apply for the exact amount you think you’ll need and then the lender will work with you to figure out how you can use your loan to fund business-related expenses. This usually includes everything from purchasing equipment and supplies, renting out office space, and refinancing existing business debt to actually acquiring other businesses.

To learn more about the uses of an SBA loan and to get a free quote, Access Capital form Wealth Stack Lendio.

Are There Better Alternatives to SBA Loans?

As mentioned above, Wealth Stack is a digital advisory platform offering financial solutions to small business owners and startups. We provide retirement solutions and advisory services like capital introductions. So, if you don’t want or don’t qualify for an SBA loan, there are alternative sources of capital that you can access! 

As a member of the Wealth Stack platform, we’ll introduce you to the right investors in our network so that you can easily access the capital you need to grow your startup to success. 

On top of that, if you’re a member of the PRO pack, you’ll get five hours a week with Andrew, our Founder & CEO, who just so happens to be a former investment banker. He’s crunched the numbers, made the deals, and managed over $1 billion during his career. He can absolutely help you too.

When you reach that point, Wealth Stack is here for you. The Wealth Stack Growth Pack is designed to help you:

  • Access the funding you need at the terms you want
  • Learn how to use that cash to increase the value of your business
  • Attract top talent
  • Increase business productivity
  • Retain your best employees

To start investing in yourself, your employees, and your business, learn more about the Wealth Stack VetCAP Pack here.