SBA Loans

Westfield Bank is a proud partner of the U.S. Small Business Administration (SBA) and will assist you in navigating your way through the options available to your small business. Click here to contact a Westfield Bank Commercial Lending Advisor.

What is an SBA Loan?

An SBA-backed loan is a loan to a small business that is otherwise unable to secure financing on reasonable terms through normal lending channels. The program operates through private-sector lenders that provide loans, which are guaranteed by the Small Business Administration (SBA) -- the SBA has no funds for direct lending or grants. For a complete history of the SBA, click here.

How does the SBA program work?

A lender (Westfield Bank) provides the commercial loan to the borrower. The SBA guarantees a portion of the loan (between 50%-85% depending on the program) acting much like a co-signer. This relationship gives lenders confidence in the borrower and allows them to move forward with a loan that they might otherwise not approve. Some examples of this may include, a loan to a borrower that has less collateral than a bank requires or a loan to support business growth.

Is an SBA loan right for my business?

Here are several reasons to consider an SBA guaranteed loan:

• Longer terms (up to 7 years for working capital; up to 25 years for real estate)
• Flexible repayment options
• Lower down payments
• Improved cash flow, so you can use your cash in your business

What are my options when selecting an SBA loan?

SBA offers many types of loan programs. Here are just a few examples of loans the SBA can guarantee if your small business qualifies.

• Women
• Veterans
• Native Americans
• Opportunity Gaps
• Young Entrepreneurs
• International Trade
• En Espanol
• 50+ Entrepreneurs

For a complete listing of SBA loans, click here.

Does my business qualify for an SBA Loan?

Westfield Bank and other lending agencies expect your business to repay the loan from the cash flow of your business. During the qualification process the SBA typically looks for management capability, collateral pledged and owner's equity contribution as part of the deal. If you own 20% or more of the company, you will be required to personally guarantee the loan. You must also be free of felony convictions. Additionally, there are some industries that are not eligible for an SBA loan.

How do I apply for an SBA loan?

At Westfield Bank, one of our Commercial Lending Advisors would be happy to assist you in applying for an SBA Loan. At Westfield Bank our philosophy is simple: when we help our clients grow their business, we grow as well. We offer a variety of loans to fit your needs and grow your business.