Quick Summary: SBA loans are government-backed business loans with 10- or 25-year terms, used to grow or to refinance business debt. Lexington Capital's general guidelines are 2 years in business, a 650 credit score and at least $120,000 in yearly revenue, and a loss on your tax returns doesn't automatically rule you out. Expect more paperwork and more time than other loans, in exchange for longer terms.
When people hear "SBA loan," they often picture a mountain of forms and a long wait. There's some truth to that. There's also a reason so many owners go through it anyway: long terms that keep the monthly payment manageable while the business grows.
What an SBA Loan Is
The Small Business Administration doesn't usually lend the money itself. It backs part of the loan, which makes lenders willing to offer terms that other business loans don't.
Through the program Lexington Capital arranges, SBA loans come with 10- or 25-year terms. Owners use them to:
- Open a second location or buy an existing business.
- Invest in the business they already have.
- Refinance business debt that costs too much today.
What Lexington Capital Generally Looks For
Under Lexington's general guidelines, which can change:
- 2 years in business.
- A credit score of 650 or higher.
- At least $120,000 in yearly revenue.
A loss on your tax returns doesn't automatically rule you out, which surprises many owners. Plan on providing your business tax returns.
Patricia has run a daycare in Hudson County for six years. She found a second building nearby, but the short-term loans she was offered had payments her budget couldn't carry. A longer SBA term would spread the cost out so the new center has time to fill up. (This is an illustration, not a real client.)
Kevin helps you get ready and submits the application. Lexington Capital makes the decision.
What Few People Tell You
- It takes longer. SBA loans ask for more documents and more review than most programs. If you need money next week, this isn't the one.
- Lenders often ask for life insurance on the owners. It protects the loan, and your family, if something happens to you. Because Kevin is also a licensed life insurance agent, he can explain how that piece works. It's your choice where you buy it.
- Long terms are long commitments. A 25-year loan is a 25-year promise. Borrow what the business needs, not the most you could get.
Note: Financing is provided by Lexington Capital, not by Kevin Gaviria or Gaviria Life Insurance Solutions. Kevin is a referral partner of Lexington Capital, not a lender, and may receive a referral fee. Lexington Capital reviews every application and makes all credit decisions. Not every applicant is approved.
Is an SBA Loan the Right Fit?
It's usually a good fit when the business is established, the need is long-term and you can wait for the process. If the need is short-term, look at working capital or a line of credit instead.
When it's time to apply, Kevin sends you a private upload link for your documents. Please don't text or email bank statements, tax returns or credit reports.
A Simple Next Step
Take the 2-minute program check to see which programs may fit, or see what an SBA loan takes. You can also call or text Kevin at (848) 212-8787.
FAQs: SBA Loans
A loss doesn't automatically rule you out under Lexington's general guidelines. Lexington reviews the whole picture.
Through Lexington's program, 10 or 25 years, depending on the loan.
Growing the business, opening another location, buying a business, or refinancing business debt.
Lenders often want the loan protected if an owner passes away. That protects your family and your partners too. Kevin can explain how it works, and you can buy it wherever you choose.
Usually not. It asks for more paperwork and takes longer than most programs, in exchange for longer terms.