SBA Loans for Window & Glass Contractors: Are You Eligible?

As a small business owner in the glass and glazing business, you likely already realize how important the right funding can be when you have specific business needs. For example, you may need to purchase a new company truck, hire new workers to serve more customers, or stock up on specialized tools.

SBA loans for glass and glazing companies can be instrumental in providing the cash to grow your business or meet operational needs.

Before applying for an SBA loan, though, it’s a good idea to learn what it takes to qualify for SBA financing. Just as importantly, you need to discern if it’s the right type of funding for your business needs.

This article outlines the benefits of SBA loans for glass and glazing companies. We’ll also explain how the SBA’s primary loan program works and what it takes to meet eligibility criteria for SBA loans. Plus, we'll help you choose the right SBA loan and offer pointers on applying for a loan.

Why Consider an SBA Loan For Your Glass or Glazing Business?

Imagine taking your glass and glazing company to new heights by transitioning from residential projects to bidding on large commercial contracts. To make it happen, you need to manage the long payment cycles and immediate costs.

That’s where SBA loans for glass and glazing companies can help. The benefits of SBA loans for glass and glazing companies go beyond securing capital. SBA loans can help you scale your business without putting unnecessary strain on your cash flow. It can also serve as a financial cushion during seasonal slowdowns or unexpected delays in customer payments.

There are several reasons you might consider an SBA loan for your glass and glazing business. They include:

• Upgrading equipment
• Purchase service vehicles
• Buying another glass or glazing business
• Hiring more installers
• Opening a second location in another city

Other Benefits of SBA Loans for Glass and Glazing Companies

SBA loans offer several clear advantages over traditional bank loans. This is because the Small Business Administration guarantees part of the loan. The SBA's partial guarantee reduces risk for banks.

Other advantages of SBA loans for glass and glazing companies include:

• Longer repayment terms: Repayment for SBA loans ranges from up to five years for working capital to up to 25 years for equipment and real estate financing.
• Lower monthly payments: Since you have longer to repay the loan, your payments may be lower. This can make it easier to manage your business’s cash flow to meet the new loan payment and day-to-day operational expenses, like materials, labor costs, insurance, and more.
• Lower down payments: Down payments will vary depending on the lender.
• Supports short and long-term needs: Some SBA loan programs are flexible and help with many business needs, particularly SBA 7(a) loans. This means you can get a short-term loan to cover working capital needs during a slow period or a longer-term loan that allows more time to pay off a major purchase, such as a shop to run your business from.

Types of SBA Loans for Glass and Glazing Companies

There are several types of SBA loans for Glass and Glazing Companies. You may want to explore several options to find the right kind for your business needs.

• SBA 7(a) loans for glass and glazing companies: The SBA 7(a) loan is the SBA’s primary and most popular loan program. It’s also a versatile financing option for glass and glazing companies that supports a diverse range of short and long-term needs, including:
  • Inventory, supply, and equipment purchases
  • Working capital
  • Commercial real estate refinancing and purchases
  • Refinancing business debt
  • Assuming ownership of a business
  • Any combination of the above

• 504 Loans: A 504 loan can provide fixed-rate, long-term financing for investing in real estate or equipment. However, you can't use it for working capital.
• Microloans: These loans offer funding up to $50,000 and are ideal for smaller projects, short-term needs, or startups.
• Express Loans: SBA Express loans offer up to $500,000, but the SBA guarantees a smaller fraction of the loans. So, SBA lenders are more likely to scrutinize borrowers more comprehensively than with other types of SBA loans.

Meeting Eligibility for an SBA Loan

With so many benefits of SBA loans for glass and glazing companies, this type of financing might be at the top of your list. So, it’s only natural for the next thing on your mind to be—“Am I eligible for an SBA loan?”

One of the primary contingencies for getting an SBA loan is that borrowers must prove they're unable to qualify for a business loan from a non-governmental source. The SBA has also implemented a rule that states a borrower cannot have liquid resources to substitute for an SBA loan, after allowing for retirement, college, and medical fund savings.

Other SBA eligibility guidelines state that a business must:

• Operate for profit in the United States
• Meet the SBA’s definition of a small business
• Not be classified as an ineligible business (No worries here; Glass and glazing businesses are eligible as long as they meet other SBA guidelines)
• Demonstrate creditworthiness and the ability to repay the loan

Regarding credit, the SBA just raised the minimum business credit score from 155 to 165. Another thing worth noting is that smaller SBA loan applications with loan amounts of $350,000 and under that meet the qualifying credit criteria receive an expedited loan process. Otherwise, some SBA loans can take quite a while to get funded.

Applying for SBA Loans for Glass and Glazing Companies

Now that you know more about SBA loans for glass and glazing companies, the next step is to begin the application process. It’s best to be prepared before applying for a loan.

SBA loans have so much to offer that any preparation time spent is well worth it, especially when you’re looking for affordable financing with longer repayment terms. Being organized from the start will help streamline your application process and will save you endless frustration.

Here’s how to get started:

• Choose the right SBA loan program:
  • SBA 7(a) is ideal for working capital, equipment, or general business use
  • SBA 504 is helpful for purchasing real estate or large purchases of assets like equipment
  • SBA Microloans work well for smaller, short-term needs
• Gather documents for lenders:
  • A detailed business plan
  • 2 to 3 years of business and personal tax returns
  • Business bank account statements
  • Financial records (profit and loss statement, balance sheet, cash flow statement)
  • Ownership and business structure details
  • Quotes or contracts for equipment, vehicles, or property
  • A breakdown of how you’ll use the loan funds
• Determine if you have collateral and a down payment:
  • Nearly all loans $50,000 and over require collateral
  • When required, the SBA has a 10% down payment policy, sometimes more, depending on what the funds are used for, and your credit and business credentials
• Work with an SBA-preferred lender, as they provide:
  • More expertise in SBA lending
  • Greater chance of being approved
  • Faster approvals

Final Thoughts

SBA loans for glass and glazing companies are designed to meet the real needs of small business owners. They have flexible terms, manageable payments, and funding that works with your cash flow and not against it. Meeting eligibility requirements for an SBA loan can be a game-changer for growing your business.

Whether you need more working capital to help grow or you just need to get through a slow season, the benefits of SBA loans for glass and glazing companies are too great to overlook.

FAQs About SBA Loans for Glass and Glazing Companies

1. What is the easiest SBA loan to get approved for?

There isn’t one loan that is the easiest as they all have rigorous standards to be approved.

2. Can I get financing for my glass and glazing company with an SBA 504 loan?

If what you need is working capital, a 504 loan may not be the right SBA financing solution. 504 loans are for fixed asset purchases, like commercial real estate, equipment, and machinery purchases. You can also use a 504 loan to remodel existing facilities or consolidate debt under certain circumstances.

3. What are the standard eligibility criteria for SBA7(a) loans for glass and glazing companies?

For SBA loans for glass and glazing companies, your business must meet the SBA’s definition of a small business in the U.S., be operational, and for-profit. You must also meet the SBA’s underwriting and credit criteria, starting with a minimum business credit score of 165.

4. Where can I get SBA loans for glass and glazing companies?

You’ll need to apply with an SBA-approved lender. This includes banks, credit unions, and online lenders for 7(a) loans and Certified Development Companies for 504 loans. Microloans are usually obtained through nonprofit, community-based organizations.

5. What if I’m not eligible for an SBA loan? Where can I get financing?

Online platforms work with SBA lenders and non-SBA lenders. If you’re unable to qualify for SBA loans for glass and glazing companies, they can determine if you would qualify for other financing solutions with less strict requirements. Their experts can also help you determine what it would take for you to become eligible for SBA loans in the future.