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July 27, 2023   /   K. Lee Graham

What’s New in the SBA Small Loans Guidelines for 2023?

The Small Business Administration (SBA) has increased the maximum loan amount from $350,000 to $500,000 under their guidelines for processing ‘Small Loans,’ SBA loans meeting a maximum threshold are eligible for expedited and streamlined processing.

This change is intended to disperse small business financing across a wider pool of applicants while making it easier and faster to obtain funds.

As a result of the changes, if you’ve previously been approved for an SBA 7(a) loan of $350,000, you could qualify for additional loan proceeds with the same streamlined application previously only available for smaller loans.

The 2023 SBA loan program changes create a significant opportunity to access affordable capital, boost your working capital, retain employees, and fuel the growth of your business.

Why Did the SBA Small Loan Program Change in 2023?

The ‘Small Loan’ guidelines for the SBA 7(a) loan program enable business owners to access government-guaranteed financing faster and with less paperwork than standard SBA 7(a) Loan programs. With the new changes, you can access even more through the Small Loan Program, giving you the freedom you need to grow your business.

The most significant impacts of the 2023 SBA loan program changes include:

  • Increased financing limits for the streamlined SBA loan process.
  • Reduced paperwork for loans of $500,000 or less compared to Standard SBA 7(a) Loans.
  • Minimal collateral requirements for ‘small loans’, including no personal real estate or life insurance as collateral.

Plus, for loans with terms of 10-years or less, there are no prepayment penalties. You can access the affordable capital for immediate use and repay the loan as swiftly as you like, offering superior cash flow flexibility. Additionally, these loans are re-amortized at the beginning of each calendar year, unlike a mortgage, to ensure the loan payments are spread out amongst the remaining loan term. Therefore, prepayments have a tangible impact on your monthly loan payment in the following year.

Fast-Track to Additional Funds

The changes are now in effect for the SBA 7(a) loan program, which means your increased loan amount could be available as soon as your lender can process your application. At West Town Bank & Trust, we value growing with our existing customers and are proud to offer expedited loan processing to current and previous borrowers.

If you are an existing Small Loan borrower with us, you can expect to receive your additional funds on average 30-40 days after submitting our fast-track loan application, sometimes within 20-30 days.

Ready to Access Additional Capital? Next Steps…

The recent SBA 7(a) loan program changes are a game-changer for business growth. Let’s explore together how you can leverage these changes to fuel your success.

At West Town Bank & Trust, we are committed to helping you navigate these new opportunities. Book a free consultation with our team to discuss how these new financing opportunities can help drive your business forward.

Remember, success in business is about seizing opportunities. Don’t let this one pass you by. Contact us today to discuss how you can take advantage of this significant opportunity.

Check Your Eligibility for SBA Small Loan Financing

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About West Town Bank & Trust: A financing partner should reciprocate the level of trust you’ve built around your practice. With a 100-year+ community banking history, West Town Bank & Trust works with entrepreneurs across the US to grow their businesses with proven financial solutions.

Whether you’re interested in purchasing another book of business, facilitating growth without restricting cash flow, or getting a better interest rate on your existing loan, our team of industry experts is here to help you seize the opportunity.