Frequently Asked Questions
What types of loans does SBCF offer?
SBCF offers loans to small start-up and existing businesses:
• To purchase equipment
• To purchase commercial real estate to house your business
• For working capital
• For business expansion
• Gap or interim financing
• Contract financing for companies that work with local, state or federal government agencies
SBCF does not finance:
• Weapon stores, pawn shops, dance clubs, any business without sufficient collateral
• Consumer loans
• Recent bankruptcies (Must have been discharged, not dismissed at least (two) 2 years prior to date application is submitted.
• Non-profit entities
Who Qualifies for a SBCF loan?
Start-ups and Existing Business that are registered to do business in the state of Mississippi
You may qualify if you:
o Have a reasonable credit history
o Can demonstrate your ability to repay the loan through returns or cash flow projections
o Can offer acceptable collateral
o Have experience or will hire experienced management for the business
Does SBCF offer any forms of grants?
• SBCF does not offer any form of grant assistance to any business.
• Grants are very seldom offered by any entity for for-profit business ventures.
What are the typical loan terms and rates and what is the maximum amount borrowed?
• Loan terms vary from bridge or contract loans for 90 days to real estate loans for 15 years
• Rates vary based on source of loan funds and are indexed to the U S Treasury note, and as such are subject to change. Contact a loan officer for specifics.
• Amount: $5,000 and above. For start-ups, the maximum amount borrowed is $75,000.
How long does it take to get a loan?
• The length of the loan process varies based on the type of loan applied for and when the loan officer receives all of the documentation required to process the request.
• Typically it takes 30 to 45 days to close the loan once all the information has been received.
Can I reside out of state but own a business in Mississippi and qualify?
No. An applicant must be a resident of the state of Mississippi and business must be registered or will be registered to do business in Mississippi to qualify for funding.
Do we have to be a corporation?
No. Your business does not have to be incorporated. A permitted d.b.a in the state of Mississippi is all you need regarding business formation type. Can be an LLC, Sole Proprietor, partnership, S Corporation as well.
Do you require a D.U.N's number
Depending on your loan type, SBCF may require you to have a Dun & Bradstreet number to be added to your statements and financials.