Webinar Presentation
What we’ll cover in this webinar:
- Background on the SBA 7(a) loan program
- Eligibility Requirements (Exciting updates to our program!)
- Live demonstration of the SBA loan application
- How to expedite your loan review
Webinar Q&A
General Questions
To apply, simply create your free NEWITY account by visiting portal.newitymarket.com/signup and submit your application. It takes less than 10 minutes and will not impact your credit score.
Creating a NEWITY account is free. There is no charge associated with creating your account or submitting your application.
Your NEWITY account should retain all your entered information. If your computer freezes or your internet connection disconnects, you can log back into your NEWITY account, resume your application, and submit it to receive custom loan options for your business.
Yes, in the closing process for your SBA loan our team will help you establish monthly auto-payments from your designated account. If you need to adjust the payment amount, our loan servicing team can help you make those changes.
Our team will reach out periodically to verify whether any changes have occurred to business location, operations, or collateral, as this may affect insurance requirements.
No, NEWITY + Northeast Bank currently offer access to the SBA 7(a) loan program. We do not yet offer access to the new SBA line of credit program.
If you do not qualify for an SBA 7(a) loan, some of NEWITY’s funding partners provide lines of credit.
Yes! We provide access to SBA 7(a) loans for businesses all across the nation.
Eligibility Questions
The current minimum credit score for an SBA 7(a) loan through NEWITY’s platform is 660. Please note that credit score alone does not determine eligibility for a loan.
Yes, businesses that operate out of a home can qualify for an SBA loan.
There is no time limit associated with applying for an SBA loan after receiving a non-SBA loan, however, existing debt is used to determine your eligible SBA 7(a) loan amount. Note, SBA 7(a) loans can be used to refinance high interest rate debt.
Yes, businesses do not need to have any W-2 employees to receive an SBA loan. Further, SBA loans can be used to cover 1099 payments in addition to payroll, rent, utilities, supplies and more.
At NEWITY, we understand some businesses experience seasonality. We will look at your past two years of revenue to determine your loan amount.
If your payment plan is in good standing, you may be eligible for an SBA 7(a) loan. If you defaulted on a government loan, you are not eligible until it is in good standing.
Yes, if the business continues to operate similarly before and after the entity change, in most circumstances we can rely on the previous operations of the business to help you qualify for an SBA loan.
Yes, if the business has been in-operation for at least two months, it can qualify for an SBA loan whether it has operated in a brick and mortar location or in another place in the US. Note, the loan itself can be used for working capital for the new brick and mortar location to purchase inventory, supplies, marketing materials and pay rent, utilities, payroll, 1099 payments and more.
Yes, the team will review your last two full years of revenue and three most recent business bank statements to help determine your loan amount.
The requirements described in the webinar presentation are the basic minimum requirements to receive an SBA loan. Our underwriting requirements that determine your full eligibility for an SBA loan incorporate numerous factors that can impact your final qualification for a loan.
If one owner has a higher ownership percentage than all other owners (e.g., the 51% owner in a 51/49 split or the 40% owner in a 40/20/20/20 split), only that majority owner’s FICO will be used to determine eligibility.
If there is not a single owner with the highest ownership percentage, a weighted average of the relevant FICOs will be used to determine eligibility.
In the second scenario, it is possible for one or more owners to have a FICO below the 660 threshold and still qualify, assuming the weighted average is still at 660 or above.
Yes! You can reapply for an SBA loan every 90 days. By applying through NEWITY, your credit score will not be impacted by your applications.
Yes! We can help you secure more than one loan for your businesses. Please note, NEWITY + Northeast Bank are bound to certain affiliation requirements that are established by the SBA, but we are happy to help you determine whether one or all of your businesses qualify.
The minimum FICO to secure an SBA 7(a) loan through the NEWITY + Northeast Bank program is 660. Credit scores are generally re-evaluated every 90 days. Excellent payment history and high income can help contribute to an increased credit score.
While this does not apply for startup loans, average annual income over the past two years must be at or above $50,000.
If the trust is a majority owner (20%+), the majority beneficial owner of the trust would need to sign a personal guaranty on the loan, similar to the SBA requirement for any individual owner of 20%+.
Yes. If you are making payments on your PPP loan, they must be current in order to qualify for an SBA 7(a) loan. If your PPP loan was forgiven, there is no impact on your SBA eligibility.
Use of Funds Questions
Yes, SBA loans can be used to purchase an existing business, but NEWITY does not provide access to these loans.
Yes, SBA 7(a) loans offered through NEWITY’s platform, including startup loans, can be used for payroll, 1099 payments, rent, utilities, inventory, marketing, supplies, and more.
Startup Loan Questions
If you have two months in operation and do not have tax filings yet, you can still apply for a startup loan using your business bank statements. If you operate with an EIN, we will request a copy of your EIN letter from the IRS.
For SBA 7(a) startup loans through the NEWITY platform, your loan amount will be calculated using the most recent 2 to 3 months of bank statements. The annualized revenue on those bank statements must be at least $50,000 to qualify for a startup loan.
The operating history of the business determines whether you meet eligibility requirements. If the business has been in-operation for at least two months and bank statements show at least $50,000 in revenue on an annualized basis, you may qualify for an SBA 7(a) loan.
Yes! We can help you secure an SBA 7(a) loan as low as $17,500 with as little as two months in operation.
Currently, the business’ owner(s) must have a 720+ FICO score per the above calculation methodology to receive an SBA 7(a) startup loan. Our platform does provide access to alternative financing options if you do not meet the initial FICO requirements. Some of these options can help build your credit score.
Underwriting & Loan Review Questions
If your business has two different bank accounts, you will need to supply the past 2-3 months of bank statements for both accounts.
We use the bank statements to verify your reported revenue and your general cash flow.
If your loan amount requires a business debt schedule, we will provide you with a template to complete. The template requests the type of debt, maturity date, monthly payment amount, interest rate, outstanding amount, whether it is collateralized, and if the payments are current.
You can prequalify for an SBA 7(a) loan in less than 10 minutes and receive an estimated loan amount. Final approval and funding for an SBA 7(a) loan can happen in as little as three weeks.
