Yes, it is allowable to have multiple loans if you qualify and meet the requirements. If your business previously qualified for a SBA loan and you continue to be in good standing with your current SBA loan there should be limited problems in getting approved for another one.
To be eligible for another SBA loan, your business should be profitable, the business owner’s credit should be good and your existing loan must be in good standing, this includes actively repaying the EIDL debt. A single business owner can have multiple SBA loans with a limit of $5M not dependent on the program.
Did you receive an EIDL during or after the COVID-19 epidemic? As long as you are current on your EIDL payments, securing additional working capital for the business will not be an issue, as long as the business can afford to payback additional debt.
Multiple SBA loans can be beneficial for your business due to their low interest rates and long repayment periods. Terms go up to 25 years and are broken down into monthly payments. Typically you are less likely to default on an SBA loan, allowing you to maintain a healthy financial record.
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How to be eligible for another SBA loan?
Applying for a second SBA loan generally means continuing to meet the requirements. If you were eligible for the first loan, you’d likely qualify for the second, but it’s not a sure thing. Considering some of the tips below may help you qualify the second time around.
- Meet the basic loan requirements
- Business operates in the United States
- The business has to be a for-profit venture
- The business must belong to an SBA approved industry
- Maintain a good credit score (minimum 650, but higher is better)
- Stay current on existing loans
- Demonstrate potential for long-term success
Want to learn more about how multiple SBA loans could benefit your business? Contact us today to explore your options and determine the best path forward for your company's needs.
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