What does the Small Business Administration do?

SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, preserve free competitive enterprise and maintain and strengthen the overall economy of our nation.

What qualifies as an SBA small business?

What Is the Definition of a Small Business? The answer varies by industry, but a small business is one that has fewer than 1,500 employees and a maximum of $38.5 million in average annual receipts, according to the SBA.

How much money is considered a small business?

SBA’s Table of Size Standards provides definitions for North American Industry Classification System (NAICS) codes, that vary widely by industry, revenue and employment. It defines small business by firm revenue (ranging from $1 million to over $40 million) and by employment (from 100 to over 1,500 employees).

Is it hard to get an SBA loan?

The reality is that qualifying for an SBA loan is extremely hard. If only because lenders can set their eligibility requirements high, lending only to the best candidates. Plus, the application process for an SBA loan is longer, requires more documentation, and is more involved than with any other loan.

How many employees qualifies as a small business?

In the United States, the Small Business Administration establishes small business size standards on an industry-by-industry basis but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7.5 million in annual receipts for most non-manufacturing businesses.

Is the SBA loan based on credit score?

The SBA itself doesn’t assign a specific credit score to qualify for this financing. For the SBA 7(a), this means a minimum score of approximately 640. But you’ll increase your chances to be approved for an SBA loan with a minimum credit score of 680 or higher.

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