Conventional Business Loans vs. SBA Loans

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is a Conventional Business Loan?
How Does Conventional Lending Work?
How SBA Loans Work
Your business must qualify as a small business, as the SBA defines it. Your business must be for-profit. You must do business in the U.S. You personally must have invested equity into your business. You must have used other sources of financing including personal asset. You must be able to demonstrate a need for the funds. You must use the funds for business purposes.
Differences Between Conventional Business Loans and SBA Loans
Loan Rates
$0-$25,000: Prime + 4.25% $25,001-$50,000: Prime + 3.25% Over $50,000: Prime + 2.25%
$0-$25,000: Prime + 4.75% $25,001-$50,000: Prime + 3.75% Over $50,000: Prime + 2.75%
Loan Requirements
How Much You Can Borrow
How to Choose Between Conventional Business Loans and SBA Loans
Considerations for Both Conventional Business Loans and SBA Loans
About the Author
Susan Guillory is the president of Egg Marketing, a content marketing firm based in San Diego. She’s written several business books, and has been published on sites including Forbes, AllBusiness, and Cision. She enjoys writing about business and personal credit, financial strategies, loans, and credit cards. Follow her on Twitter @eggmarketing.
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