Yes, with the help of FastwaySBA, businesses with shown losses are able to obtain SBA backed 10 year loans. When SBA banks will not issue loans to businesses with losses on their tax returns, FastwaySBA can! SBA lending requirements have changed to include businesses that show losses on the last filed tax return. The key here is that not every SBA approved lender will offer a loan to a business that shows losses. That’s exactly why it's important to work with an SBA partner like FastwaySBA. We show the quickest path to the best SBA loans.
When SBA banks will not issue loans to businesses with losses on their tax returns, FastwaySBA can!
Even with losses that are reflected on the last business tax return, FastwaySBA requires that the losses do not exceed 15% of Gross Sales.
So if the business generated $500,000 in total gross sales, the losses could not be higher than $75,000.
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When applying for a business loan, traditionally the business would need to show profitability to be approved for funding. This is because the lender needs to verify that the business can afford to make the loan payments. A conventional loan does not have a chance of getting approved if the business isn’t cash flowing. Even with losses, the SBA will still guarantee a loan, but keep in mind that the other requirements need to be met, such as minimum credit score and time in business.
The most common reasons for declined SBA business loans are poor applicant credit, insufficient cash flow and outstanding tax liabilities.
To explore SBA options for your business: apply here.
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