Frequently asked questions
Applying for a loan
What can I use Grow America small business loans for?
Our loan programs are flexible and can provide funding for nearly any business need—from hiring employees and purchasing equipment to acquiring real estate.
What will my interest rate and repayment term be?
Your interest rate and repayment term will be customized for your business. Your lender will discuss these factors with you as part of the loan application process. Grow America offers highly competitive interest rates and loan terms of up to 25 years, which results in affordable monthly payments for borrowers.
Remember to consider both your interest rate and term when evaluating loan options, as these factors together will determine the affordability of your monthly payment.
Is there a prepayment penalty?
There are no prepayment penalties for loans under 10 years. For loans with terms of 10 years or more, prepayment penalties are low and the penalty disappears after 3 years of repayment.
What fees will I pay?
Fees will be customized for your loan, and are very transparent and will be itemized for you. Grow America charges modest and customary fees. We do pass on fees that are required for loan closing, such as appraisals, liens, and required third-party reports.
What is Grow America’s loan qualification criteria?
Your lender will work with you one-on-one to discuss your business and financial situation and see if your request is a fit with one of our loan solutions. However, in general, if you answer “yes” to all or most of the following questions, your business is ready to take on debt:
- Is your business profitable (if not, can you show how a loan will help to turn that around)? Or, is your business a start-up with strong projections?
- Do you pay yourself a salary? If you do not, does your business generate enough cash and profits to pay you a livable salary?
- Are you current on all personal and business taxes?
- Can you comfortably pay any existing business debt or other loans?
What is the application process like and how long does it take?
- Step 1: To start the process with Grow America, submit an initial inquiry here.
- Step 2: After you submit an initial inquiry, your lender will let you know if you are pre-qualified for a loan in approximately 2 business days. If so, they’ll set up a one-on-one meeting to meet you and get a sense of how you’ll use the money and the basics of your business’s financial situation.
- Step 4: Your lender will then put together a customized application and document list for you based on your needs, guiding you along the way as to what’s required.
- Step 5: Your loan is approved and disbursed.
The length of the process greatly depends on your ability to provide the necessary documentation and respond to your lender’s questions. A typical loan process takes 45-60 days from application to funding.
What documents will I need to apply for a loan?
You will need to submit four basic documents to get started and submit a loan inquiry:
- Most recent business tax returns
- Most recent personal tax return
- Year-to-date business profit and loss statement (P&L)
- Personal financial statement (PFS), which is a summary of your total assets and liabilities. Grow America can provide a template for the required PFS or can provide you with access to its easy-to-use online platform so that you can complete the form
After reviewing these documents, your lender will provide you with a customized list of other documents and pieces of information that will be required to move forward.
How does the SBA 7(a) loan program work?
The SBA provides a guarantee for a portion of each 7(a) loan to Grow America, which increases the level of risk we are able to take on a loan. This means we are able to approve loans that fall outside the criteria for traditional bank loans and help both established and new businesses gain increased access to funding.
I’ve heard that SBA 7(a) loans are time consuming. Can you explain why?
We recognize that SBA 7(a) loans are rigorous, as the SBA requires a comprehensive application process and supporting documentation in order to provide the loan’s guarantee. This investment of your time is a tradeoff for longer terms and lower monthly payments. This supports your business’s growth in the long run and will help unlock access to other financing opportunities in the future.
How can I get in touch with Grow America?
To start the process for a new Grow America loan, please submit a loan inquiry here. If you are an existing borrower with a question about your account, email servicing@growamerica.org.
For existing clients
Do I have to pay my loan back?
Yes, all loans must be paid back.
What can I use the money from this loan for?
When your loan is approved, the funds will be designated for specific purposes. Your approval documentation will outline how these funds are distributed. Money allocated as working capital provides flexibility to address various business needs, while all other funds must be used according to their approved designations.
How do I make my loan payments?
Your loan will be set up with autopay; payments will automatically be deducted from your chosen account.
What should I do if I miss a payment?
If you miss a payment, reach out to our team immediately to resolve the missed payment. If your business is experiencing temporary issues that will prevent you from making a timely payment, please contact us immediately to explore options and next steps.
Will my loan affect my credit score?
All loans are reported to the credit agencies and failure to make on time payments will be reflected on your credit report.
What should I do if I need more money?
If you need additional financing, please make sure to reach out to us at servicing@growamerica.org
Do I need to do anything other than paying my loan back in the future?
Yes, all loans have compliance requirements and you will be required to provide information to Grow America periodically.
Common items include annual tax returns, ongoing proof of insurance, and etc. Please reference your closing documents, which detail the information you are required to provide. If you are unable to locate the information, please contact us at servicing@growamerica.org
If I have an adjustable rate loan when will my rate change if the Wall Street Journal Prime interest rate changes?
If the Prime interest rate changes, the rate change will take effect on the first day of the first month of the quarter (e.g. January 1, April 1, July 1, October 1).
For referral partners
What type of small businesses qualify for Grow America loans?
Grow America specializes in lending to small businesses that fall just outside of traditional banking criteria. Because we take a common sense approach to credit, we can work with businesses that do not meet specific criteria related to collateral, credit score, and other factors when the business demonstrates significant strength in other areas.
How can I refer a small business to Grow America?
To refer a business to Grow America, simply submit information via this form and we will contact you with next steps.
What happens after I refer a business to Grow America?
Once you refer a business to our team, we’ll take it from there and you will have real-time access to a dashboard that shows the progress of the referred loan as it moves from inquiry, to underwriting, to closing.
Does Grow America participate in deals?
Grow America can partner with your financial institution to structure deals that minimize risk while maximizing financing options for your customers. If only certain aspects of a deal meet your lending criteria, Grow America can provide supplemental financing for the portions that fall outside your parameters. This creates a win-win situation: your bank maintains its lending standards while your customers receive the full funding they need.
Do you work with brokers?
Yes, Grow America partners with brokers to provide financing options for their customers. However, we do not provide commissions to brokers for closed deals.
What should I do if I need more money?
If you need additional financing, please make sure to reach out to us at servicing@growamerica.org
Do I need to do anything other than paying my loan back in the future?
Yes, all loans have compliance requirements and you will be required to provide information to Grow America periodically.
Common items include annual tax returns, ongoing proof of insurance, and etc. Please reference your closing documents, which detail the information you are required to provide. If you are unable to locate the information, please contact us at servicing@growamerica.org
If I have an adjustable rate loan when will my rate change if the Wall Street Journal Prime interest rate changes?
If the Prime interest rate changes, the rate change will take effect on the first day of the first month of the quarter (e.g. January 1, April 1, July 1, October 1).
Ready to move forward with a small business loan?
Apply for a loan with Grow America today, and you could receive a conditional approval within 10 business days.