With small business activity on the rise, securing an SBA loan is more appealing—and competitive—than ever. Shirley Polanco, an SBA lending expert, provides her insights into how business owners can succeed in today’s fast-paced market.
As small businesses across the country respond to rising demand, securing capital has become a priority. Among the financing options available, Small Business Administration (SBA) loans stand out for their favorable terms, offering entrepreneurs a path to growth, expansion, or acquisition. However, with market activity surging, the process of obtaining an SBA loan has become increasingly competitive.
“Small businesses are booming right now, and that’s fantastic to see,” says Shirley Polanco, an SBA lending expert with Fidelity Bank. “But with the surge in demand for financing, business owners need to be more strategic than ever in how they approach the SBA loan process.”
Why SBA Loans Are in High Demand
SBA loans have long been a popular choice for small businesses. Their government backing allows lenders to offer terms that are more accessible than conventional loans, including lower interest rates, longer repayment periods, and smaller down payment requirements.
“These loans are designed to help small businesses succeed,” Polanco explains. “Whether you’re starting a new venture, acquiring an existing business, or expanding your operations, an SBA loan can be the ideal solution.”
However, the benefits of SBA loans also mean they are highly sought after, particularly in a thriving market. “In this environment, lenders are seeing an uptick in applications, which makes it even more important for borrowers to stand out,” Polanco notes.
What Makes a Successful SBA Loan Application?
According to Polanco, the foundation of a strong SBA loan application is preparation. Business owners should start by understanding their financial position and ensuring they meet basic eligibility requirements, such as credit score thresholds and collateral availability.
“Too often, I see borrowers who dive into the application process without fully understanding what’s required,” she says. “Taking the time to get your financials in order can make a huge difference.”
Polanco recommends assembling key documents early, including:
- Tax returns (both personal and business)
- Profit-and-loss statements
- Cash flow projections
- A detailed business plan
“A good business plan is especially critical,” she adds. “It should not only outline your company’s goals but also demonstrate how the loan will directly support those objectives.”
Understanding the SBA Loan Options
One of the most important steps in the process is selecting the right SBA loan for your needs. The two most common programs are the 7(a) and 504 loans, each tailored to different types of borrowers.
- SBA 7(a) Loan: Polanco describes this as the “Swiss Army knife” of SBA loans, ideal for working capital, acquisitions, and debt refinancing.
- SBA 504 Loan: This loan is designed for fixed assets like real estate and large equipment purchases. “It’s a great option for businesses that need to invest in infrastructure,” Polanco says.
Choosing the right loan type can be overwhelming, but Polanco encourages business owners to work closely with their lender to identify the best fit. “Your lender should act as a partner, guiding you through the options and helping you make an informed decision,” she explains.
The Role of the Lender
Polanco stresses the importance of working with a lender who specializes in SBA loans. “Not all banks are created equal when it comes to SBA lending,” she says. “An experienced lender will understand the nuances of the process and be able to navigate any challenges that arise.”
At Fidelity Bank, Polanco and her team focus on simplifying complex deals and ensuring a smooth experience for borrowers. “Our motto is ‘Do right by you,’ and we take that seriously,” she says. “For us, it’s not just about closing a loan—it’s about helping our clients achieve their long-term goals.”
Navigating Challenges
Despite their advantages, SBA loans come with their own set of challenges, particularly in today’s competitive market. Polanco points out that the application process can be time-consuming, often taking 60 to 90 days or more to complete.
“Patience is key,” she says. “But the best way to minimize delays is to stay organized and responsive. When your lender asks for additional documentation, be prepared to provide it quickly.”
Polanco also warns against common pitfalls, such as submitting incomplete applications or overestimating future revenue. “Be honest and thorough in your application,” she advises. “Lenders appreciate transparency and realistic projections.”
Looking Ahead
For entrepreneurs navigating a surging market, securing an SBA loan can be a pivotal step toward growth. Polanco’s advice? “Invest the time and effort upfront to prepare. The more you understand the process and work with the right lender, the better your chances of success.”
With her expertise and dedication, Polanco continues to help small business owners achieve their dreams, one loan at a time. “It’s incredibly rewarding to see my clients succeed,” she says. “When their businesses thrive, it’s a win for all of us.”
Shirley is here to make securing an SBA loan as smooth and efficient as possible. Click the link to connect and take your business to the next level! https://www.fidelitybanknc.com/sba-lending/team/shirley-polanco/
