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Business SBA Loan FAQs

1. What is small business?
2. What types of businesses are eligible?
3. Will I be able to purchase Real Estate with an SBA Loan?
4. Are start up businesses eligible? What do I need to submit to apply for a loan?
5. Can I consolidate other business debts?
6. What are the terms for an SBA Loan?
7. What is the fee to obtain an SBA Loan?
8. Will Shinhan Bank America charge an additional loan origination fee?
9. Is there a prepayment penalty?
10. I already have an existing SBA loan and heard that I cannot obtain an additional SBA Loan. Is this true?
11. My credit report shows late payment history. Am I eligible to obtain a SBA Loan?
12. I am not a U.S. citizen yet. Am I eligible to apply for a SBA Loan?
13. How long will it take to get a loan?
14. Is there a geographical limitation Shinhan Bank cannot cover?
15. How do I apply?


1. What is small business?

The SBA has size standards for each business to determine the maximum size of an eligible small business. Please contact us or visit www.sba.gov/size to see what options best fits your small business

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2. What types of businesses are eligible?

Most businesses are eligible. However, not-for-profit entities, illegal activity businesses, pyramid sale distribution planned businesses, non-US based businesses, and speculative businesses are restricted from being eligible

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3. Can I purcase real estate with an SBA loan?

Yes. To purchase real estate with an SBA loan, an owner-operator has to occupy more than 51% of an existing building. However, apartment buildings and investment properties are ineligible.

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4. Are start up businesses eligible? What do I need to submit to apply for a loan?

Yes a start up business is eligible for an SBA loan. However, to start the process of obtaining an SBA loan, you must have a business plan. If you don’t have one, please visit www.sba.gov to obtain information on how to prepare a business plan.

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5. Can I consolidate other business debts?

Yes. Most business loans can be refinanced with a SBA loan as long as it meets refinancing guidelines. Please contact our SBA specialists for more details.

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6. What are the terms of SBA loan?

Up to 25 years for real estate, 10 years for business acquisition/inventory/equipment, and 7 years for working capital.

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7. What is the fee to obtain an SBA loan?

The SBA charges a guaranty fee ranging from 2.0% to 3.75% of the guaranteed amount.

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8. Will Shinhan Bank America charge an additional loan origination fee?

No. There is no additional loan origination fee from the bank. However, for our services, the Bank will charge a $500~$1,000 packaging fee.

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9. Is there a prepayment penalty?

For loans with a 15 year or longer maturity, there is a 5/3/1% prepayment penalty for the first 3 years.

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10. I already have an existing SBA loan and heard that I cannot obtain an additional SBA loan. Is this true?

No, this is not true. You can obtain an additional SBA loan as long as the aggregated guaranteed amount does not exceed its maximum amount.

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11. My credit report shows late payment history. Am I eligible to obtain a SBA loan?

Yes. Credit score is only one of many credit decision factors.

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12. I am not a U.S. citizen yet. Am I eligible to apply for a SBA loan?

You must be either a U.S. citizen or a Lawful Permanent Resident of the U.S. However, applicants with other types of visas may be eligible for a SBA loan. Please contact our SBA specialists to discuss your situation.

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13. How long will it take to get a loan?

As a PLP lender, we provide quick decisions. Typically, you will hear from our SBA specialists within 3 business days.

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14. Is there a geographical limitation Shinhan Bank cannot cover?

Shinhan Bank America is nationwide PLP lender. Please contact our SBA specialists for available states.

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15. How do I apply?

Contact us at 718-281-7825~9 or 213-251-3014.

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