SBA loans explained by the SBA's Houston Deputy District Director. You borrow from an approved bank, credit union, or lender, not the SBA, and the SBA guarantees 75% to 90% of the loan. In Episode 46 of the SCORE Houston Podcast SBA Series, host PV Bala talks with Winston Labbé, Deputy District Director of the U.S. Small Business Administration's Houston District Office. A Houston native and U.S. Army veteran, Winston spent more than 25 years in commercial lending, including senior roles at JPMorgan Chase, Wells Fargo, Amegy Bank, PrimeWay Federal Credit Union, and Unity National Bank of Texas, where he served as Chief Lending Officer. He has evaluated small business loan applications from both sides of the desk. Winston walks through the main SBA loan programs in plain language: the 7(a) loan (up to $5 million for working capital, equipment, inventory, and owner-occupied real estate), the 504 loan for owner-occupied real estate and major equipment, and microloans of up to $50,000 through community development financial institutions (CDFIs). He also covers the Working Capital Pilot revolving line of credit, the new MARC loan (Manufacturers' Access to Revolving Credit) for small manufacturers, and current guarantee fee relief for manufacturing and food supply chain loans. For anyone preparing a small business loan application, Winston explains what lenders actually review: three years of business and personal tax returns, a personal financial statement, bank statements, a specific loan amount, and, for startups, a business plan with monthly cash flow projections for year one. He discusses why credit score minimums vary by lender, how the SBA guarantee offsets limited collateral, the 10% minimum equity injection for startups and business acquisitions, why startup lenders look for a secondary source of income, and how a seller note on full standby can count toward the down payment when buying a business. The episode closes with guidance on finding an SBA-approved lender in Houston, choosing between a national bank, community bank, or credit union, and the first steps to take before applying. Chapters 00:00 How SBA loans really work 02:23 SBA loan programs: 7(a), 504, microloan, Working Capital Pilot 06:58 What lenders look for: business plan and cash flow projections 11:16 Credit score, collateral, and equity requirements 14:18 Startup financing, CDFIs, and finding an SBA lender 20:33 MARC loan, fee relief, and buying a business with an SBA loan Resources Free SCORE Houston mentoring: https://www.score.org/houston | 713-487-6565 SBA Houston District Office: https://www.sba.gov/district/houston SBA Lender Match: https://www.sba.gov/funding-programs/loans/lender-match Subscribe on: YouTube: https://www.youtube.com/channel/UCwYwZdflYjHJeI8oTA_fRJw Apple: https://podcasts.apple.com/us/podcast/score-houstons-podcast/id1845697492 Spotify: https://open.spotify.com/show/3DTCZlNpp4FWgp1xdgrhQb Amazon Music: https://music.amazon.com/podcasts/b4ac4d74-acb2-43cc-b5f0-433ad259fccb Shorts: https://www.youtube.com/@SCOREHouston/shorts The SCORE Houston Podcast features practical conversations with small business owners, SCORE mentors, and SBA leaders. SCORE Houston, a nonprofit SBA resource partner, offers free, confidential one-on-one business mentoring. Let us know what you think of this episode. What subjects you would like us to cover in next episodes. Give your comments at https://scorehoustonpodcast.blogspot.com or write to pv.bala@scorevolunteer.org. Let us know what you like of this episode and suggest subjects on which you wish to know more.
