The early stage and small business land scape is dynamic and troublesome for almost any involved. In 2013, there were 860,000 new businesses and 788,000 closures. Big banks only approved around 24.1% of small business loans. Smaller banks have a much higher approval rate of around 48.9%. Alternative Lenders approved 58.2% of loan requests. (Source: Biz2Credit 2017)
The average SBA 7(a) loan is $371,628. The maximum loan amount is $5 million. There is no minimum. (Source: (SBA)
A great many small business cannot qualify for bank financing and their principles are not strong enough to guarantee the funding. 75% of small businesses used their own personal finances as primary startup funding. Other funding options were banks at 16% and family/friends at 6%.