Asked in Business Law for Louisiana

Q: is it by law that the bank have to give you a small business loan?

In Louisiana

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1 Lawyer Answer

A: No. A bank is not legally required to give a small business loan. SBA loans, which are a type of small business loan guaranteed by the Small Business Administration, have specific lending requirements that banks must follow. Of course, banks offer other types of small business loans as well.

About 20-30% of SBA loan applications are approved by large banks, with up to 40% being approved by small regional banks.

Banks will look at how long your business has been in operation, the type of business conducted, your personal credit score, and a couple years' financial records of your business in making a determination of eligibility for your business.

Approval is by no means guaranteed.

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