Growth takes more than ambition. Small businesses need the right financing. It takes access to capital and a knowledgeable banker who understands your market.
The SBA program has been helping small businesses obtain loans since the 1950s, and Preferred SBA Lenders in your community can help you navigate the program. As one of the fastest-growing SBA lenders in the nation and the #1 Kentucky-based SBA lender, Heritage Bank helps tri-state businesses move forward with confidence. Read more to see how local SBA expertise can support your next stage of growth.
Small business is the backbone of our economy. Across the tri-state, entrepreneurs create jobs, serve their communities, and drive innovation. From retail shops and trades companies to manufacturers and professional service firms, small businesses shape the strength and character of our region.
Although many banks—especially locally owned community banks like Heritage Bank—are able to solve many financing problems with a conventional loan, there are times when expertise in SBA lending makes the difference.
Why are SBA loans important to small businesses?
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Small business (SBA) loans are partially guaranteed by the U.S. Small Business Administration. Rather than issuing loans directly, in most cases, the SBA works with approved banks. Because the federal government shares the risk, banks are able to extend financing to small businesses who might not otherwise qualify. The result across a region and the nation means more small businesses who qualify have access to the capital they need to start, grow and thrive.
The potential advantages of SBA loans:
- Lower down payments
- Longer repayment terms
- Competitive interest rates
- Flexible use of funds
For many businesses, this structure improves cash flow while creating room for expansion. With more flexible terms, small businesses are better able to make payments on the loans while having the cash available to run their day-to-day operations. Conventional loans are generally less flexible.
SBA 7(a) and SBA 504 Loans
The two most common SBA programs are the 7(a) and 504 loans. The SBA 7(a) loan is the most flexible option and is often used for working capital, purchasing equipment, acquiring a business, refinancing debt, or buying commercial real estate. It is designed to meet a wide range of business needs.
The SBA 504 loan, on the other hand, is focused specifically on major fixed assets. Businesses typically use 504 financing to purchase or construct commercial real estate or acquire large equipment. These loans are structured to support long-term investment and stability, often with fixed-rate financing.
How Greater Cincinnati Businesses Use SBA Financing
Businesses across the region use SBA loans to:
- Purchase or construct commercial real estate
- Acquire equipment
- Refinance existing debt
- Fund working capital
- Support ownership transitions or acquisitions
Whether a company is purchasing its first building or investing in additional capacity, SBA financing can provide stability and flexibility at the same time.
What You Need to Apply: Key Requirements and Documentation Checklist
Financial Documents:
- Personal & Business Tax Returns: Last 3 years of federal returns.
- Financial Statements: Year-to-Date Profit & Loss (P&L) statement, balance sheet, and a 1-to-3-year projection of income and finances.
- Bank Statements: Personal and business statements for the last 12 months.
- Debt Schedule: A list of all current business debts.
Legal & Business Documentation:
- Business License/Certificate: Copies of your license or registration.
- Business Plan: A comprehensive plan detailing the use of funds.
- Leases: Copies of any commercial leases.
- Ownership Details: Information regarding any owners with 20% or more stake.
Personal Information:
- Resume: Personal resumes for all owners/principals.
- Personal Financial Statement: (e.g., SBA Form 413).
- Statement of Personal History: (SBA Form 912).
Loan Specifics:
- Use of Proceeds: Clear documentation on how the loan funds will be used.
- Collateral: A list of assets available to secure the loan, though not required for all, especially loans under $50,000.
Basic Eligibility Criteria
- Must be a for-profit business, officially registered, and operating within the U.S.
- Must meet SBA size standards.
- Owners with 20% or more stake must provide a personal guarantee.
- Must have reasonable invested equity and the ability to repay.
- Must have tried other financial options first.
Lenders may also check the FICO Small Business Scoring Service (SBSS) score, which often requires a score of 165 or higher for 7(a) small loans.
Why Local Expertise Matters
Effective SBA lenders understand documentation requirements, how to structure deals for SBA approval and how to navigate timelines.
In addition, a locally owned community bank is willing to work with small businesses or with local entrepreneurs without the red tape or decisions made in different markets or time zones. Every commercial loan officer at Heritage Bank is one call or text away from a key decision maker who calls the tri-state home, too. Heritage Bank’s SBA lenders understand the Greater Cincinnati market, from industry trends to local economic conditions. Decisions are made locally, and business owners have direct access to experienced professionals who are invested in the region’s long-term success.
Heritage Bank is a Preferred SBA Lender and the #1 SBA lender based in Kentucky. Thanks to our partnership with Venturus, we're also one of the nation's fastest growing SBA lenders. We're equipped to advise customers, walk them through their options and expedite financing in many situations.
Growth starts with the right guidance, and local expertise can make all the difference. Get started today.
Heritage Bank. Member FDIC.
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