{"id":6997,"date":"2019-07-03T17:00:16","date_gmt":"2019-07-03T14:00:16","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=6997"},"modified":"2019-11-26T10:06:39","modified_gmt":"2019-11-26T08:06:39","slug":"how-many-sba-loans-can-you-have","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/how-many-sba-loans-can-you-have\/","title":{"rendered":"Can You Get Multiple SBA Loans?"},"content":{"rendered":"\n

Improving your small business can cost a pretty penny, and business loans can help cover those costs. Small Business Administration (SBA) loans have some of the best terms available for small businesses searching for additional financing. Since SBA loans are so attractive, the question \u201ccan you have multiple SBA loans?\u201d is bound to arise. Below, we break down that question to give you an insightful answer. Keep reading…<\/span><\/p>\n\n

Can you have multiple SBA loans?<\/span><\/h2>\n\n

The short answer as to whether or not you can have multiple SBA loans is: <\/span>yes, it is possible<\/b>. But, it\u2019s important to address two other questions that will also come into play.<\/span><\/p>\n\n

The second question that a business owner may want to ask is, \u201c<\/span>Should<\/b> I get multiple SBA loans?\u201d The answer to <\/span>that <\/span><\/i>question has more details and factors, which ultimately will relate back to the \u2018borrowing business\u2019 in question.<\/span><\/p>\n\n

If the answer to the second question is \u2018yes\u2019, then the next question that naturally arises in a business owner\u2019s mind is, \u201c<\/span>Can I qualify <\/b>for multiple SBA loans?\u201d Once again, the answer to that question will depend on specific details relating to the business that is applying for the SBA funding.<\/span><\/p>\n\n

In order to flesh-out these answers some more, let\u2019s tackle one question at a time.<\/span><\/p>\n\n

Should you get multiple SBA loans?<\/span><\/h3>\n

The question of whether or not you should get multiple SBA loans is one that needs to be approached with careful consideration. The reason is that the risks involved with taking out multiple loans at a time (known as loan stacking) may not be worth the potential benefits. Will several SBA loans help your business do better? That\u2019s really a matter of how you use the loans, and how responsible you are with your money in a general sense.<\/span><\/p>\n\n

On a very fundamental level, every business owner needs to be cautious not to stretch themselves too thin by borrowing more money than they can realistically pay back on time. If your business is doing well, and you can afford to take several SBA loans in close succession, then the risk involved is of course lower.<\/span><\/p>\n\n

Bottom line:<\/b> Use your best judgment regarding what you can afford to borrow, and make sure that you abide by all of the SBA\u2019s regulations and rules along the way.<\/span><\/p>\n\n

Can you qualify for multiple SBA loans?<\/span><\/h3>\n

Can you have multiple SBA loans? Yes.<\/span><\/p>\n

Should you get multiple SBA loans? Perhaps, depending on your business\u2019s financial health.<\/span><\/p>\n

Can you qualify for multiple SBA loans? Let\u2019s find out!<\/span><\/p>\n\n

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Important:<\/b> You will not be permitted to exceed the SBA loan program limits. Be sure to review the borrowing limit and qualifications for each of the specific <\/span>SBA loans<\/span><\/a> programs before applying a second time (more on that below).<\/span><\/p>\n<\/blockquote>\n\n

Consider the following questions:<\/span><\/p>\n\n

1. Is your cash flow strong?<\/b> Lenders will want to make sure that you\u2019re able to repay the loan(s) that they approve, otherwise they\u2019re putting themselves at risk of not getting paid back! Just like you don\u2019t like <\/span>dealing with non-paying customers<\/span><\/a>, neither do lenders. Having a consistently positive cash flow is important to get approved for your first SBA loan, let alone a second or third. A healthy cash flow is also crucial to making sure that your business doesn\u2019t stretch itself out too thin.<\/span><\/p>\n\n

2. How does your credit score look?<\/b> Qualifications for SBA funding varies between the different types of SBA loans. Broadly speaking, the minimum credit requirements to qualify for an SBA loan are a personal credit score of 650 and a business credit score of at least 140 (FICO).<\/span><\/p>\n\n

If you\u2019re aiming to get approved for another SBA loan after obtaining your first one, there\u2019s a good chance that the lender may require a credit score higher than 650. To improve their odds of SBA loan approval, business owners can <\/span>improve credit score by using credit cards<\/span><\/a>.<\/span><\/p>\n\n

3. Do you have valuable assets to secure another SBA loan?<\/b> The perspective of most lenders is the more debt you have, the riskier you appear as a borrower. To balance that risk, many lenders will require you to put up collateral. That way, if for some reason you can\u2019t or don\u2019t repay the loan, the lender will be able to seize your valuable assets. If you don\u2019t have valuable assets to use as security for a loan, consider applying for <\/span>unsecured business loans<\/span><\/a>.<\/span><\/p>\n\n

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In short: <\/b>Is it hard to get an SBA loan? For businesses that have a poor cash flow, low credit score, and lack valuable assets to use as security, qualifying for multiple SBA loans will be more difficult.<\/span><\/p>\n<\/blockquote>\n\n

\"Multiple<\/p>\n\n

Why would you need multiple SBA loans?<\/span><\/h2>\n\n

There are numerous reasons why a business owner may need to take out multiple SBA loans. For example, if the first SBA loan you obtained was used to turn a very bare-bones business into a fully-operating enterprise, a second SBA loan might be desirable for:<\/span><\/p>\n\n