SBA (Small Business Administration)
SBA (Small Business Administration) is a Federal Government Institution that manages a credit portfolio for Small and Medium Enterprises of around US$ 800 million per year. SBA sets priorities by sectors of economic activity while its external partners – private financial institutions – carry out risk analysis and manage financing for companies.
SBA backs the loans granted with guarantees. Loans for working capital are granted for a term of up to 10 years and for fixed assets for up to 25 years.s.
Although the SBA qualification standards are more flexible than those for other types of loans, lending institutions require the following documentation to proceed with the evaluation of applications for working capital, machinery and equipment, furniture and improvements, land and buildings, and debt refinancing.
- Business Profile – Document that describes the branch, annual sales, number of employees and time in the Market under the current administration.
- Credit Application – Description of the use of funds. Purpose, type and amount of credit.
- Colateral – Description of the guarantees offered to secure the credit, including participation in the Capital, third-party funds and liquid assets.
- Financial statements – Complete financial statements for the last three years and the most recent internal financial statements.
- Personal Financial Statements – Statements of the owners, partners, directors and managers and of the shareholders who own more than 20% of the capital of the company.
SBA defines a small business as one that is independently owned and does not have a dominant influence in its competitor's market.. A small business must also meet the employment and sales volume requirements required by the SBA, based on the North American Industry Classification System (NAICS). In general, the criteria applied by the SBA are as follows:
- Wholesaler – no more than 100 employees;
- Retail or Services – Average sales over the last three years or billing ranging from US$6.0 million to US$29.0 million, depending on the type of business;
- Manufacturing – Generally no more than 500 employees, but in special cases up to 1500;
- Construction – Average sales over the last three years or billing ranging from US$12.00 million to US$28.5 million, depending on the type of business.
When it comes to a business that is not owned by more than 51% by American citizens or legal residents (Green Card holders), SBA requires that the loans be satisfactorily insured and that it is evident that the business has a behavior consistent with healthy managerial practices. The representation of the majority shareholder must, in any case, exercise control of the management and assume the daily operations of the company.
For more information visit: www.sba.gov
Business Development Officer
Wells Fargo SBA Lending
333 SE 2nd Avenue, 38th Floor
Miami, Florida 33131
Tel 305-523-2511|Cell 786-459-7831|Fax 866-665-6621
Assistant Vice President
200 S Biscayne Blvd
Miami, FL 33131
Tel: 305-789-1271 | Fax: 305-357-3483 | Cell: 305-407-7447