Business Loan Eligibility
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BusinessLoanRequirements2.docxBUSINESS LOAN REQUIREMENTS 3
Introduction
Our team has gathered information on the requirements for an SBA loan from Bank of America. Upon researching, contacting various managers from different branches, we have learned that Bank of America is an international finance institution that offers non-banking and banking services to individuals and companies (CNN Money, 2017). It serves around 47 million clients. It was founded in 1904 and its head office is in North Carolina. Good enough, the bank offers loans guaranteed by SBA.
Qualifications
Our responses when contacting different branch managers about the qualification guideline were similar. Tanena as informed that the person requesting the loan must own the business, be profit-oriented, legal, reported if there is a partnership, a limited liability company, if the requestor is the sole proprietor, or if it is a corporation. Furthermore, a business that borrows SBA loan is not eligible for conventional credit. The bank's maximum SBA loan limit is $3.5 million dollars.
When it comes to an SBA loan qualifications Bryant was informed, there are major factors that Bank of America requires which are how a business earns money, character of ownership, and where they operate. It will difficult for business owners to obtain a SBA loan if there has been a recent change in business ownership, a shortfall in collateral to secure the loan, business principals who have a low net worth or the need for extended payment terms. Bank of America as most banks looks for the 5 c's; Capacity, Capital, Collateral, Conditions, and Character. If there is difficulty in approving a client due to any of these factors, a business can use a line of credit to help address cyclical cash flow issues.
References
https://www.sba.gov/7a-loan-program
www.CNN.com
