 TITLE: Here’s What It Takes to Get a Small Business Loan CONTENT: See if You Qualify\n------------------\nNot sure if you're eligible for a small business loan? To qualify, you have to meet certain criteria, though it varies quite a bit depending on which type of loan you're applying for. For example, SBA loans require the business to be for-profit and of a certain size. In addition, as the business owner, you must have invested equity and exhausted other financing options.\nSome lenders will require you to put up collateral, such as real estate or equipment, especially if you're a newer business or otherwise deemed risky. This means if you default on the loan, the lender can take ownership of those items. That makes it even more important to only take out a loan that you can afford to repay.\nWhile business loan requirements vary, lenders typically look at:\n*   **Your credit score**: The minimum credit score allowed varies significantly depending on the lender. For example, SBA loans typically require a minimum personal credit score of 620 to 640, but some SBA lenders require higher scores. Keep in mind that the better your credit, the lower interest rate you can qualify for. On the flip side, worse credit can land you a higher annual percentage rate (APR).\n*   **Your business income**: It's common for small business lenders to require your business to have a certain amount of income or cash flow. This is to help confirm that you'll be able to repay the loan. If your business isn't very profitable or income is inconsistent, it will be harder to get a small business loan.\n*   **Your time in business**: Some lenders may not have a minimum requirement for how long your business has been around. But others won't entertain your application if you're not an established business. For example, SmartBiz, an online SBA loan lender, requires two or more years of business history. END