Conventional Loans

Conventional business loans are traditional financing options provided by banks, credit unions, and increasingly, online lenders. Conventional loans are commercial loans that are not backed by an SBA guaranty. Because this loan type is not backed by an SBA guaranty none of the SBA rules apply but the flip side is that these loans have a higher qualifying and cash flow criteria. This translates to more stringent eligibility requirements but can also offer faster approval processes, lower interest rates (currently anyway), higher loan amount limits, and the guard rails for loan structuring (especially for acquisitions) are set much wider.