All You Need to Know About SBA Bolt Loans

All You Need to Know About SBA Bolt Loans

SBA Bolt loans are a popular choice for businesses seeking faster funding and less paperwork compared to traditional 7(a) loans. These loans, issued by CreditBench, the small-business lending division of BayFirst Financial, offer a streamlined application process with funding times that are significantly quicker.

Qualifying for an SBA Bolt Loan

To qualify for an SBA Bolt loan, businesses must meet standard SBA loan requirements. This includes being a U.S.-based business operating for profit, meeting the SBA's definition of a small business, operating within an eligible industry, and being unable to obtain financing on reasonable terms from nongovernment sources.

Additionally, businesses must have a minimum personal credit score of 700 or higher and at least two years in business. SBA Bolt loans do not require physical collateral or a down payment, but a personal guarantee and a UCC lien on business assets may be required.

BayFirst Financial prefers to work with certain types of businesses, including day cares, assisted living facilities, home health care, nail salons, engineering services, certified public accountants, veterinary services, physicians, dentists, store retailers, wholesalers, furniture/home furnishing, HVAC, plumbing, manufacturers, and businesses in non-preferred industries may be evaluated on a case-by-case basis.

Applying for an SBA Bolt Loan

The SBA Bolt loan application process starts with filling out a prequalification form on BayFirst's website. The prequalification form asks for basic details about the applicant, business, and other business owners with a 20% stake.

Once prequalified, applicants will be asked to provide additional documentation such as profit and loss statements, balance sheets, and personal tax returns for all owners with at least 20% ownership. Additional information required includes a breakdown of use of proceeds, business assets' fair market value, management team description, copies of driver's license, business tax returns, personal tax returns, SBA Form 413, and a current business debt schedule.

Key Features of SBA Bolt Loans

SBA Bolt loans have a 10-year term with a monthly repayment schedule. They can be used for working capital needs such as utilities, payroll, office supplies, and marketing costs.

One of the main advantages of SBA Bolt loans is their fast funding times. While funding times can vary, SBA Bolt loan funding can be received in just days. It's also worth noting that SBA Bolt loans do not have a prepayment penalty.

However, SBA Bolt loans have some limitations. They can only be applied through BayFirst and its referral partners, and they are only available up to $150,000. Additionally, SBA Bolt loans cannot be used for equipment purchases or debt refinancing.

Alternative Financing Options

For businesses needing more than $150,000 or wanting to use funds for equipment purchases or debt refinancing, SBA Express loans may be a suitable alternative. SBA Express loans offer faster access to funds than standard 7(a) loans and can be processed and issued without the SBA's approval.

Online business loans may offer funding in as little as 24 hours, with more flexible qualification requirements and potential for working with startups and borrowers with bad credit. However, online loans typically have higher interest rates and shorter repayment terms.

SBA microloans, processed and issued by approved intermediaries, typically nonprofit and community organizations, offer funding up to $50,000 with repayment terms for up to seven years.

In conclusion, SBA Bolt loans offer a faster and more streamlined financing option for businesses. However, it's important to carefully consider your business's needs and the specific requirements of each loan type to make the best decision for your business.

[1] Small Business Administration [2] BayFirst Financial [3] SBA 7(a) Loan Program [4] SBA Express Loans [5] SBA Microloans

1. For personal finance management and planning, consider downloading a finance app that offers calculators for credit card payments, loans, and investments.
2. If you're running a small-business and require investments for expanding your operations, evaluating the potential return on investing in SBA Bolt loans could prove beneficial.
3. To avoid business funding delays, apply for an SBA Bolt loan with CreditBench, the small-business lending division of BayFirst Financial, as it offers significantly quicker funding times compared to traditional SBA 7(a) loans.
4. Growing businesses with credit scores above 700 and at least two years of operation history might qualify for SBA Bolt loans, which do not require collateral or a down payment but sometimes necessitate a personal guarantee and a UCC lien on business assets.
5. Alternatively, if your small-business needs more than $150,000 or wants to use funds for equipment purchases or debt refinancing, you could consider exploring other financing options such as SBA Express loans, online business loans, or SBA Microloans.

Read also: