SBA Application FAQ's
Will applying affect my credit score?
You can pre-qualify for a KW SBA loan without any impact to your credit score. To determine if are qualified, our underwriters review a “soft pull” of your credit report. This does not impact your credit score.
However, when your loan application proceeds to funding, the SBA Lender will request a hard pull of your credit report, which will appear as an inquiry on your credit report. This hard pull will only occur one time during the loan process and will only be done to confirm agreed upon loan terms.
What type of business financial information do you need to apply?
Our underwriters will collect bank statements, current income statements, current balance sheets, past financial information, and outstanding loan information. You should be prepared to provide as much historic financial information as possible, including all filed tax returns for the principals and the business.
Is a subordination from my landlord required for loans?
Yes. If you borrow more than $26,000 for a working capital loan, you will be required to get your landlord to sign a subordination release that will be provided prior to funding. You will also be required to obtain an annual option to renew your lease if you do not already have one or if your lease term doesn’t match the loan term. Basically, you cannot borrow money for a period longer than your current lease rights.
Is a business valuation required for business acquisitions?
No formal business valuation or appraisal is required if you plan on acquiring a business with the loan proceeds. Our underwriters will perform a business valuation if necessary
What are your insurance requirements?
For loans $30,000 and higher, SBA lenders require certificates of insurance policies. The lender will also need to be named as a Lender’s Loss Payable on your policies.
What is the process to sign my loan package?
We’ll either put you in touch with a notary after all documents have been reviewed or you will be able to e-sign your closing documents.
Is a deposit required for third party closing costs?
If you are purchasing commercial real estate or acquiring a business, a deposit for costs such as appraisals or business valuations may be required.
How long does it take to get my funds?
After completing the application, you can receive your funds in as fast as 7 days. Most loans only take 2-3 weeks from the time that the application is complete – not from the pre-qualification approval. If you need funding to occur by a specific date, please specify the deadline in your application and confirm with your assigned loan officer. The faster you provide the underwriter with your supporting documentation, the faster your loan can be funded.