What size SBA loan can I get? As bankers, we are asked this question nearly every day. Often there are misconceptions about the SBA loan programs and that they are either for smaller or larger loans. Simply put, SBA loans come in all sizes and a good banker can find the loan program and loan size that works for your business.
Many times, a small business seeking just $50,000-$100,000 may feel that a SBA loan is too large for their business - or that the loan is too small for a bank to consider. Likewise, some larger companies seeking a loan of $5,000,000 may not know there are advantageous SBA loan programs for larger loan amounts. For borrowers in need of both a smaller or larger loans, not considering an SBA option often leaves them without some of the best financing sources.
Recent data published by the Federal Reserve shows that SBA loans ranged from $1,000 to $5,000,000+ over the past few years. Overall, the SBA loans had an average size of about $633,000. Further the data shows that large national banks had an SBA loan average in the $500,000 range while community banks average SBA loans were closer to $100,000. Breaking down the data further, small and community banks offered more SBA lines of credit than large national banks.
What all this data points too is that SBA loans come in all sizes and no business owner should feel that their company is too large or two small for an SBA loan. The SBA loan is a great product to make sure all businesses have access to capital. Talking with your local PyraMax Banker will insure you have the right sized SBA loan.