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Business Financing Challenges Revealed in SBCS Report
Business Financing Challenges Revealed in SBCS Report.
When Proactive Business Debt Refinancing Matters
Here’s everything you need to know about business debt refinancing, its benefits, and how LoanBox can help you find the right solution.
About Equity Buy-in Loans in 2025
An equity buy-in occurs when a non-shareholder, such as an employee or external investor, acquires less than 100% of a business’s equity through a stock or equity sale. For SBA rules Equity Buy-ins are treated the same as partial partner buyouts. A partial partner buyout is an existing shareholder purchasing equity owned by a partner resulting in the buyer owning less than 100% of the total equity.
House Collateral and SBA Loans in 2025
Small business owners value the trust and lower rates of traditional bank loans, with 67% preferring banks over online lenders, yet face low approval rates—14.6% at large banks and 20.3% at small banks in September 2023
Sell Your Business Faster With 95% Upfront Cash and 5% Standby Note
If your buyer will be using an SBA backed loan to finance the purchase of your business then the SBA new rules outlined in the SBA’s Standard Operating Procedures (SOP 50 10 8, effective June 1, 2025), then a seller note allows you to finance a portion of the buyer’s required equity injection for an SBA 7(a) loan, boosting their ability to close the deal while providing you with significant immediate cash and a low-risk, annuity-like payout.
For Smart Business Loans, Think Inside the LoanBox
Small business owners value the trust and lower rates of traditional bank loans, with 67% preferring banks over online lenders, yet face low approval rates—14.6% at large banks and 20.3% at small banks in September 2023 [1]. Worse, 43% of those rejected abandon their efforts after one or two attempts, risking their dreams [2]. This preference strengthens for larger loans, but alternative lenders’ small loans (averaging $50,000) and high rates (14.99%–99% APR) deter owners needing over $1 million, not under $100,000, without urgent cash flow issues [4].
Using SBA Loans for Partner Buyouts
A partner buyout loan finances the purchase of a partner’s equity in a business, allowing you to increase your ownership stake, either fully or partially.
SBA Franchise Directory Returns: What It Means for Franchisees in 2025
The SBA Franchise Directory is back thank goodness. The new SBA rules, effective on June 1, 2025, brings back this list of pre-approved franchise brands making life so much easier for banks, brands and the franchise borrowers. Let’s break down what it means for you and how LoanBox makes financing your franchise a breeze.
Understanding the SBA SOP 50 10 8 Changes for Your Small Business Loan
Are you a small business owner or franchisee looking to fund your venture with an SBA loan? The new SBA Standard Operating Procedure effective June 1, 2025, introduces critical updates to the rules governing 7(a) loans, affecting eligibility, underwriting, and application processes. Let’s break down the key changes and show how LoanBox’s platform helps you navigate them to secure funding efficiently.
Stricter Guarantor Requirements for SBA Loans
When financing your small business or franchise, whether for international trade or other ventures, a guarantor provides a safety net for lenders by personally or corporately backing the loan’s repayment. This commitment strengthens your loan application, especially for SBA-backed financing.
Navigating SBA Franchise Loan Eligibility in 2025
Are you a franchisee dreaming of launching or expanding your franchise with an SBA loan? The SBA’s updated rules, effective June 1, 2025, under SOP 50 10 8, introduce significant changes to franchise loan eligibility, reinstating the Franchise Directory, tightening ownership requirements, and enforcing stricter compliance standards. Let’s explore how the new rules affect your SBA loan eligibility.
No More Refinancing Merchant Loans With SBA Loans
Are you a small business owner or franchisee struggling with the crushing payments of a merchant cash advance (MCA)? You might be eyeing an SBA loan to refinance that high-cost debt and stabilize your finances. Unfortunately, the SBA’s rules, updated in SOP 50 10 8 (effective June 1, 2025), explicitly prohibit refinancing MCAs with SBA 7(a) or 504 loans. This restriction protects businesses from predatory debt cycles but ironically now prohibits SBA loans to help refinance out of predatory type lending.
Mastering the SBA Credit Elsewhere Test in 2025 with LoanBox
Are you a small business owner or franchisee aiming to fund your venture with an SBA loan? Whether you’re launching a new franchise or expanding a local retail shop, the Credit Elsewhere Test is a critical hurdle to secure SBA financing. This test ensures you genuinely need the SBA’s low-rate, long-term loans because you can’t obtain affordable financing elsewhere. The updated SBA SOP 50 10 8, effective June 1, 2025, makes this test more rigorous, demanding robust documentation and stricter underwriting.
Non-U.S. Citizens Ineligible for SBA Loans in 2025
The SBA’s updated SOP 50 10 8, Section B, Chapter 1, Paragraph B, introduces a strict ownership requirement, barring non-U.S. citizens from accessing 7(a) and 504 loans unless the business meets specific criteria. Here’s the breakdown:
New SBA Equity Injection Rules
As of June 1, 2025, SBA loans for startups and changes of ownership will require a minimum 10% equity injection of total project costs. While the SBA made significant changes it allows for exceptions for business expansion.
Top 10 Banks for Franchise Loans Over the Last 10 Years
Over the past decade, an average of 33% of the top 10 SBA franchise lenders change each year, based on total funded loan amounts. This means that, on average, one-third of the top lenders from one year are replaced by new entrants the next. Here are specific examples over the last few years:
Business Loan Credit Scores: What to Know in 2025
When it comes to securing financing for your business, your credit score plays a pivotal role. Whether you’re eyeing a traditional business loan or an SBA-backed loan, understanding where you stand credit-wise can make or break your application.
Most Business Borrowers Initially Contact Low Probability Lenders
Small business owners often start their SBA loan journey by reaching out to the lender least likely to approve their application. It’s a systemic issue nationwide: selecting the right SBA lender is a challenge many entrepreneurs don’t even realize they’re facing.
Are You Too Big for an SBA Loan? Not Likely.
The SBA loan program is a popular option for small businesses seeking funding for growth and expansion. But there is a catch: your business must meet size requirements to qualify. We’ll explain the SBA's size standards and how they apply to you.
SBA Lending to Existing Businesses > 2 Years Old
Existing businesses over 2 years old is by far the biggest recipient of SBA loans in general but the smallest recipient when it comes to franchise lending. Established business loans have accounted for 42% to 49% of funded SBA loans over the last few years. In FY2024, 45% of funded SBA 7(a) loans went to established businesses while only 15% of SBA lending went to established franchise businesses over 2 years old.