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Understanding SBA Loans

Important updates on the Paycheck Protection Program

New federal legislation extends the Small Business Administration's (SBA) deadline to approve new Paycheck Protection Program (PPP) loan applications from March 31 to May 31, 2021, or sooner if funding runs out. The legislation also enables the SBA to continue processing pending PPP loan applications for an additional 30 days after its May 31 deadline; however, lenders must complete processing and submit all applications to the SBA by May 31.

With this program extension, Bank of America is now accepting new applications for first draw and second draw PPP loans.

 
 
 

Understanding more about loans backed by the Small Business Administration (SBA) can help you decide if an SBA loan is the right solution for your business.

SBA loans are provided by Bank of America

When you apply for an SBA loan, you do so through a financial institution like Bank of America. While we’re providing the actual loan, the SBA is guaranteeing a portion of that loan, which enables you to get access to capital with more flexible terms.

SBA loans are available for a variety of purposes

The SBA’s various loan programs can enable you to finance commercial real estate, ground-up construction, equipment acquisition, business acquisition, partner buyout, tenant improvements and working capital. The program that’s right for you (504, 7a or express) will depend on your business’s specific need.

SBA loans offer more flexible terms

SBA loans are designed to be flexible so you can obtain financing with longer terms (up to 25 years) and lower down payments (as little as 10%).

We make applying for an SBA loan easy

A Bank of America SBA specialist can advise you on choosing the right SBA program for your specific capital needs and will guide you step–by–step through the application process.

The SBA application package typically includes a personal financial statement, three years of business and personal tax returns, the SBA–required forms, information about all owners and an explanation of how a loan will help the business.

 
 
 

Get the funding your business needs

Our recommendation tool can help you find the right financing. Simply answer a few quick questions and we’ll recommend the best product for your business.