SBA Loan Alternatives for Small Business Owners
By Howard Heckler

Small business owners are rightfully drawn to Small Business Administration (SBA) loans. For the most part, they provide borrowers with business-friendly terms and low rates, but unfortunately, this isn’t always the case.

Simply put, investors will get turned down on a SBA loan for a number of reasons. Perhaps your business is too young or maybe you weren’t able to provide enough documentation to qualify. Other common issues involve the SBA restrictions on business size and use of proceeds.

Whatever the reason, there is no reason to lose momentum in funding your projects.

The good news is that borrowers who fail to secure an SBA loan still have the opportunity to qualify for a loan that has equally competitive rates and more importantly, meets their need for flexibility. Two of the more popular (and flexible) programs offered for these clients are bank statement and no doc streamline plans.

1. Bank Statement Programs

When applying for a SBA loan, borrowers may be required to provide tax returns to prove their credibility. If they fail to produce these documents, they are unlikely to qualify for a loan. At Alpine Funding Corp, we provide clients an alternative solution — our bank statement program. This gives borrowers more flexibility when it comes time to produce the paperwork needed to obtain a commercial loan.

So what exactly do you need to provide? Bank statement programs typically allow borrowers to submit business bank statements in lieu of tax returns when qualifying for a loan.

Our program at Alpine Funding offers increased flexibility in other ways as well. While SBA loans are amortized up to 25 years, our bank statements loans can be amortized for a full 30-year period. We also remove many of the business eligibility and proceed use requirements that keep prospective borrowers from securing SBA financing.

2. No Doc Programs

While some borrowers may choose to use bank statements to prove their income, there are other small business owners that might want even more flexibility regarding income verification. Traditionally, these borrowers tend to think they have one option—a hard money loan that comes with rigid terms­—but there are more lenient solutions available in today’s market.

A “no doc” commercial loan allows business owners to secure financing without having to provide tax returns, bank statements, leases rent rolls, or historical operating statements. In fact, at Alpine Funding all we need to start a transaction is a completed loan application and a credit report.

It should be noted that certain documentation, like bank statements and a purchase contract, is required for real estate purchases. And real estate appraisers may ask for additional information during the course of their property review. Nevertheless, the requirements for a no doc loan are far less than those of an SBA alternative.

Our no doc solution involves an underwriting process based on the cash flow that will be produced instead of your personal income.

SBA loans are an attractive option for many borrowers, but when they don’t qualify, there are other financial solutions to be considered when searching for a commercial loan. At Alpine Funding Corp, we are able to guide those small business owners who wish for more flexibility and a SBA alternative choice, whether that’s a bank statement program or a no doc loan.

Interested in getting started with Alpine Funding? Contact us today – we can discuss your business needs and goals and help you choose the loan that is right for you.