Get answers to our most frequently asked questions
What is your rate?
SBA loan interest rates vary based on the specific product. In general, SBA rates are some of the most competitive on the market. However, loan rates fluctuate so it’s best to speak with one of Live Oak’s lenders to determine what your interest rate will be. For an SBA 7(a) loan, interest rates are the daily prime rate, which is determined by the Federal Reserve, plus a lender spread which is calculated depending on the loan amount and the loan term. Our lending team will gladly walk you through any questions you may have about specific interest rates, depending on the unique needs of your business.
How much is required for a down payment?
There is no simple answer to this question – talk through it with someone from our lending team. This amount depends on your business type and use of funds. Live Oak can guide you after we learn a bit more about you and your business.
What documents will I need to give you?
Whether you’re looking to buy, build or expand, you can expedite the financing process by taking these simple steps now.
- Know your credit history. Your personal credit is more than just a score, so be ready to answer questions about any items that appear on your credit report.
- Have your business and personal tax returns in PDF format. Once you’re ready to move forward, having digital copies readily accessible will help reduce the time it takes to complete a loan application.
- Understand your financial standing. Most banks will ask for information regarding your personal financial resources, assets and obligations when you’re applying for a loan.
- Be prepared to articulate your business plan. Banks are looking to lend money to people who believe in their project and have completed thorough due diligence.
Additional necessary application documents may include (but are not limited to):
- Driver’s License
- Voided Business Check
- Bank Statements
- Balance Sheet
- Profit & Loss Statements
- Business Debt Schedule
What assets can I pledge as collateral?
We are cash flow lenders and view collateral as a last resort means of repaying a loan. So, we are first ensuring that cash flow is sufficient to repay the proposed debt, and we are looking at collateral second. That being said, there are certain collateral requirements that need to be met depending on the loan product, size of the loan and the use of proceeds. Some common examples of collateral that might be required are: home equity, retirement accounts, commercial real estate, equipment and automobiles. Be sure to speak with your lender about potential collateral requirements.
What types of financing are available?
We can help you navigate the many financing options and make sure it’s a good match for you. One of the resources that we often utilize is the Small Business Administration, which is a government agency. A portion of SBA loans is guaranteed by the government and as mentioned above, the most common SBA loan programs include 7(a) and 504 loans. We can also combine those SBA loans with conventional loans, lines of credit and more. Let’s talk through your goals and we’ll craft a personalized loan package, together.