Who is eligible for an SBA loan?

Any small business independently owned and operated for profit.

What are the qualifications for obtaining an SBA loan?

There are five basic qualifying criteria.

Credit- Loan requests are subject to an evaluation of the personal creditworthiness of the owner(s).

Cash flow ‑ Based on past years' performance of an existing business or reasonable projections on a start‑up business backed by a complete and thorough business plan. Net income should cover the annual loan payment plus an additional 25% or more.

Concept ‑ This is particularly important on applications for a start‑up business. The applicant’s experience and qualifications relating to the business he or she is starting are key factors. Established franchises are favorably considered.

Collateral ‑ Loan requests are generally not turned down due to lack of collateral.  However, if additional collateral is available it is usually required to secure the loan.
 
Conditions- Loan requests are evaluated based on their feasibility in relation to current economic conditions.

Capital ‑ On a start‑up business, SBA requires a one‑third equity injection from the principals. Existing businesses may qualify for an equity injection as low as 15% depending on the type of collateral offered and the nature of the business.

Contact Lone Star Bank at 713-358-9400. We are happy to provide answers to your questions, assist you with qualified guidance and get you started with Lone Star Bank's SBA Loan Application process.