SBA loans are often called the “gold standard” of small business financing. They offer longer repayment terms, lower interest rates, and flexible use of funds. But ask most business owners and you’ll hear frustration: “The paperwork is overwhelming. I don’t know what lenders really want.”
The truth is, SBA loans are not impossible — they’re misunderstood. Lenders aren’t rejecting businesses because the ideas are bad. They’re rejecting because the files are messy, incomplete, or don’t tell a clear story. That’s why Glenzy exists: to prepare decision-ready packages that speak lenders’ language.
SBA 7(a) vs 504: Which Program Fits?
- SBA 7(a): The all-purpose option. Use it for working capital, equipment, tenant improvements, acquisitions, partner buyouts, or refinancing.
- SBA 504: A specialized program for major fixed assets like real estate or heavy equipment. Typically a partnership between a bank and a Certified Development Company (CDC).
If you’re unsure, start with your purpose: day-to-day needs → 7(a). Buying property → 504. Glenzy helps route you to the right fit.
What Lenders Actually Review
- Cash Flow & DSCR: Lenders want proof you can service the debt. The magic number is the Debt Service Coverage Ratio (DSCR). Above 1.25× is the benchmark.
- Use of Funds: Every dollar should have a destination. Vague requests like “expansion” make lenders nervous.
- Ownership & Resumes: SBA requires bios for anyone with 20%+ ownership. Show experience, credibility, and commitment.
- Credit & Character: Credit pulls matter, but thin files or past hiccups aren’t deal-breakers if explained. Lenders value transparency.
Your SBA Document Checklist
- Business financials: YTD P&L, balance sheet, 2–3 years of tax returns
- Personal financials: tax returns (2 years), personal financial statement, schedule of debts
- Corporate docs: EIN letter, formation documents, ownership chart
- Debt details: existing loans, leases, lines of credit
- Use-of-funds backup: invoices, quotes, purchase contracts
Common Pitfalls (and Fixes)
- Numbers don’t match: Reconcile your P&L and tax returns, add a variance explanation.
- Missing ownership docs: Collect IDs and statements for every 20%+ owner.
- Vague purpose: Provide a one-page “sources & uses” table.
- No buffer: Add 2–3 months of working capital to your request.
How Glenzy Makes This Easier
Think of Glenzy as the AI layer between you and lenders. Instead of throwing documents over the fence, we build a clean, lender-grade package:
- ✅ Complete checklists (no missing forms)
- ✅ Doc validation and consistency checks
- ✅ Encrypted, lender-ready sharing
- ✅ Status transparency so you know what’s pending
SBA loans are worth the effort — but only if your file is clean. By showing cash flow coverage, documenting use of funds, and packaging your story clearly, you’re ahead of most applicants.
Check your SBA eligibility with Glenzy. We’ll prepare your decision-ready package and connect you to SBA-approved lenders.
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