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SBA Loans from Bankwell

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Grow your Business with the Help of an SBA Loan

SBA business loans can be a great way to grow your current business, purchase an existing business or sometimes to start a brand new business. These business loans are not made directly by the Small Business Administration - instead they are made by approved lenders according to certain criteria set by the SBA. 

Bankwell is proud to be an SBA approved lender and we are dedicated to supporting small businesses in Connecticut and nationwide. 

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Understanding SBA Loans

SBA Loan Eligibility and Requirements:

Some of the requirements to be eligible for funding from the SBA include that your business:

  • Be located in the U.S.
  • Be creditworthy and show a reasonable ability to repay the loan
  • Operate for profit (ie, no non-profit organizations)
  • Is not an ineligible business type (including lenders, pawn shops, private clubs, adult entertainment etc.)

How SBA Loans Can be Used

SBA 7(a) loans are the most common type of SBA loan. These loans can be used for: 

  • Acquiring, refinancing or improving real estate / buildings
  • Working capital (short term and long term)
  • Refinancing current debt
  • Purchasing equipment, machinery, fixtures, inventory
  • Purchasing an existing business (complete or partial)

SBA Loan Amounts

The 7(a) loans mentioned above have a maximum loan amount of $5 million. If the loans are made as “express” loans (which require less application paperwork and can be funded faster) the maximum loan amount is $500,000

Terms / SBA Loan Duration

Typical SBA loans have a term of 10 years or less. If the loan is for real estate or certain types of equipment the terms can be longer - in the range of 25 years. 

Interest Rates for SBA Funding

The rates for SBA funding will vary based on the business profile, term length and the current interest rate environment.  The maximum that can be charged is set by the SBA - ranging from base rate + between 3% and 6.5% depending on the amount of the loan.

SBA Prepayment Penalties

Most SBA loans do not have prepayment penalties. However, for loans with maturity of 15 years or more there may be penalties depending on the timing and amount of the prepayment.

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