SBA Lending: Do I Qualify for an SBA Loan? With Kathleen Kelly and Greg Giacopelli

Jennifer and Eric talk with Kathleen Kelly and Greg Giacopelli to get a full understanding of SBA loans and when it makes sense for business owners to apply for one. Kathleen is an SVP SBA Relationship Manager at Webster Bank and Greg is the VP of Business Banking Relationship Management at Eastern Bank. There are a number of considerations and rules to understand about SBA loans, how a bank sees a potential candidate, and which loan option might be best for you. In this episode, Kathleen and Greg do a deep dive into the different situations you need to be aware of before applying for this type of loan. 

Key Points

[1:40] What is an SBA loan?

[4:25] A banker or loan officer is going to look at three years of historical tax returns. This can be challenging if two of those years were COVID years.

[5:45] What factors are banks analyzing about the business before issuing an SBA loan?

[8:45] The bank first has to make an internal decision on whether they want to issue this type of loan to you.

[9:25] There are SBA rules and there are also bank rules. Some banks will not touch particular industries just because they've been burned on them in the past.

[11:05] What's the difference between an Express, 7(a) and 504 loan?

[17:55] Really be conscious of the types of income projections you have. The bank will be double-checking and scrutinizing that.

[26:45] When is it a good time for a business owner to talk to an SBA loan officer?

[31:20] Try to send financials over as early as possible.

[32:35] What is a term sheet or a commitment letter?

[37:30] If you want to get the best out of your loan, y