We cracked the code for SBA Funding for Businesses in these Specific Industries

“Nearly 50% of SBA 7(a) Approvals in 2023 were for businesses in; Food Service/Hospitality, Healthcare, Retail and Construction Industries"

- Nick Granger - Client Success, FastWaySBA

In 2023 the SBA approved capital contributions overwhelmingly to businesses in the Restaurant and Hospitality, Retail, Healthcare and Construction industries. The massive rates of approving businesses in these industries sheds some light on current internal SBA qualification trends. This also should be a huge wakeup call to business owners in this industry that currently do not have an SBA loan, since there is a high likelihood of approval because of these approval trends.

TOP APPROVABLE INDUSTRIES FOR SBA LOANS RIGHT NOW

-HOSPITALITY AND FOOD SERVICE

-RETAIL

-CONSTRUCTION

-HEALTH CARE

Source: Forbes Advisor, U.S. Small Business Administration

What This Tells Us About Borrowing Trends

The SBA, similar to Traditional Banks, often fluctuates their approval methodologies as it relates to underwriting small businesses applying for SBA guaranteed loans. There are key factors that the SBA looks at to issue an E-Tran score. The E-Tran score is issued after the SBA performs a baseline qualification on the business. The weight that each factor holds to garner a particular E-Tran score is unknown and is guarded SBA processes. The top keys factors are: Owner Personal Credit, Gross Sales, Profitability, Time in Business, Industry, and Location. These key factors can change based on SBA policy. The staff here at FastwaySBA monitor these changes to better approve our applicants.

“If you haven’t applied for an SBA loan, the process FastwaySBA has created is truly exceptional. Usually banks take months to close an SBA loan, FastwaySBA does it in a fraction of time” - Nick Granger

What This Means For Your Business

If you own a business in these industries, statistically your business will see a HIGHER approval likelihood right now. This trend may not last, so applying swiftly is defiantly advised. As shown in a recent Forbes Advisor Article, the largest reason (43%) business owners applied for a business loan in 2023 was for ‘Business Expansion’. With all the approvals for these industries right now, the competition is expanding.

Source: Forbes Advisor, U.S. Small Business Administration

Here are the Baseline Qualifications

FastwaySBA has streamlined the SBA approval and funding process; focusing on Speed and Ease.
To start here is the rough breakdowns of approval qualifications for an SBA guaranteed loan.
Personal Credit: 670+
Time in Business: 2+ years
Annual Gross Sales: $300,000
No Personal or Business Tax Liabilities (State or Federal)
Business Profitability is NOT a requirement

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“Many American Small Business Owners’ first time experiencing the SBA was from the Covid-Era EIDL process. Since then we are seeing a true renaissance for the SBA, as there is a large push to continue to help support US Small Businesses’ - Matthew Elling, Program Development at American Capital Group