Guide · Business
SBA loans: long terms to grow at your own pace
The Small Business Administration (SBA) backs part of these loans. That's why banks are willing to offer long terms other loans don't.
What are they for?
Growth: opening another location, buying a business, investing in the one you have, or refinancing business debt that costs too much today. Terms can be 10 or 25 years, which keeps the monthly payment manageable.
What does it take?
Under Lexington's general guidelines: 2 years in business, a credit score of 650 or higher and at least $120,000 a year in sales. Showing losses on your tax returns doesn't rule you out. Be ready to provide your business tax returns.
What few people tell you
SBA loans ask for more paperwork and take longer than other loans. In exchange, the terms are usually better. And lenders often ask for life insurance on the owners, so the loan doesn't fall on your family if something happens to you. Because Kevin is also a life insurance agent, he can help with both.
The truth: a 25-year loan is a 25-year commitment. Borrow what the business needs, not the most you can get approved for.
See the requirements for SBA loans · All guides
These are Lexington Capital's general guidelines and can change. This guide is education, not an offer of credit.
Is this a fit for you?
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Financing is provided by Lexington Capital, not by Kevin or Retire With Kevin. Kevin is a referral partner of Lexington Capital, not a lender, and may receive a referral fee. Lexington Capital reviews every application and makes all credit decisions. Not every applicant is approved, and terms depend on the lender and your situation.