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SBA Loans FAQs

Get answers to the most commonly asked questions regarding SBA loans.

SBA Loans FAQs

What is a Small Business Administration (SBA) loan?

The SBA is a federal agency that helps new businesses get started and established businesses to grow. As a borrower, you’re borrowing from a financial institution like Cadence Bank, not from the SBA directly. Cadence Bank works with the SBA to provide loans to small business customers.

 

Am I eligible for an SBA loan?

SBA loans from Cadence Bank are for businesses that are:

  1. Owner-operated
  2. For profit
  3. Legally organized (as a sole proprietorship, partnership, limited liability company or corporation)
  4. Within the size guidelines designated by the SBA
  5. Generally unable to receive conventional credit under reasonable terms

 

Is an SBA loan only for a new business?

No. Cadence Bank also provides SBA loans to established businesses so they can grow and expand.

 

What is the difference between an SBA loan and a business loan from Cadence Bank?

A conventional business loan from Cadence Bank is solely the bank’s risk and is subject to the bank’s lending guidelines. An SBA loan, on the other hand, splits the risk between Cadence Bank and the SBA, which guarantees a portion of the loan. Because of the split risk, SBA loans are subject to the lending guidelines of both the SBA and Cadence Bank. As a result, Cadence Bank can take on more risk and provide more flexible terms to the borrower.

 

Is an SBA loan from Cadence Bank the same as an SBA loan from another bank?

No. An SBA loan is approved, in part, by the issuing bank, and each bank has its own lending criteria. You should discuss specific terms with a bank representative to understand all the terms of your loan. Additionally, not all banks are designated as an SBA Preferred Lender. A bank that is an SBA Preferred Lender is likely to provide you with a smoother application and closing process than a bank that is not an SBA Preferred Lender.

 

Is Cadence Bank an SBA Preferred Lender?

Yes. As an SBA Preferred Lender, Cadence Bank has expanded authority to make credit decisions, ultimately providing faster approvals to borrowers.

 

 

Still have questions about the SBA loan? Check out our article, "The 8 Most-Asked Questions About SBA Loans, Answered."

 

If you’re interested in learning more about our SBA loan offerings, contact our SBA Lending team today.

 

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