What is a MTKT SBA Loan?
MTKT makes getting an SBA loan easy. An SBA loan is a small business loan that is guaranteed in part by the U.S. Small Business Administration and typically made by a bank. Through online automation, MTKT shrinks the typical SBA lending process from months down to weeks. MTKT SBA Loans offer longer terms, lower rates and lower monthly payments than other loan options.
Who is eligible for a MTKT SBA Loan?
From a hair salon to an online retailer to an accounting firm – there are many small businesses that are eligible for a MTKT SBA Loan. Most industries are eligible though there are exceptions. Here are some basic requirements:
- Minimum 2 years in business
- U.S. based business owned by US citizen or Lawful Permanent Resident who is at least 21 years old
- Good personal credit score
- No outstanding tax liens
- No bankruptcies & foreclosures in the past 3 years
- No recent charge-offs or settlements
- No criminal record other than minor vehicle violations
- Current on government-related loans
What if I’m not eligible for a MTKT SBA Loan?
We won’t leave you hanging! MTKT works with non-SBA lenders too. We’ll work to find you another type of loan that’s a good fit for your needs.
What will my interest rate be?
Interest rates are variable and depend on the loan amount:
- 6.00% (prime rate* plus 2.75%) for loans $50,000 – $350,000
- 8.00% (prime rate* plus 4.75%) for loans $30,000 % – $49,000
Are there fees or other costs?
We charge a one-time referral fee of 2% of the loan amount and a one-time packaging fee of 2% of the loan amount. For loans $151,000 and higher, there is a 2.25% guarantee fee paid to the SBA. Bank closing costs typically add about another $317 and include standard bank fees though additional 3rd party report charges may apply.
Do I need to provide collateral for a MTKT SBA Loan?
Collateral depends on the loan size. If you apply for a MTKT Loan of $30,000 or more, a lien on business assets is required, which includes assets such as accounts receivable or inventory, as well as fixed assets such as new equipment purchased with loan proceeds or commercial real estate owned by the business. The value of these assets does not need to equal the loan amount you are requesting.
What are the repayment terms?
MTKT Loans have far better repayment terms (10 years!) compared to many available alternatives. Our long repayment terms result in low monthly payments, and you can always repay the amount early with no penalty.
Are fees deducted from loan proceeds?
Yes. The one-time referral, packaging, and guarantee fees as well as closing costs are deducted from your loan proceeds at the time of funding. However, fees for other services, if any, are not deducted from loan proceeds.