#business-loans

Business Loans

Explore business loan options, rates, and financing strategies

July 27, 20268 min read

The Quick Ratio (Acid-Test Ratio): The Liquidity Number Lenders Trust More Than Your Current Ratio

The quick ratio (acid-test ratio) measures whether a business can cover current liabilities using only cash, marketable securities, and receivables — deliberately excluding inventory and prepaid expenses. Covers the formula with a worked example, why loan covenants often set a quick-ratio minimum instead of a current-ratio one, why 1.0 is the textbook benchmark but fast-turn retailers healthily run 0.3–0.4, and the mistakes that make the ratio misleading.

Mike Thrift

financial-ratiossmall-businessfinancial-health

July 26, 20268 min read

Asset Coverage Ratio: The Solvency Number Lenders Check Before You Ever See a Term Sheet

The asset coverage ratio measures whether tangible assets could repay total debt in a liquidation — [(total assets − intangibles) − (current liabilities − short-term debt)] ÷ total debt. Below 1.0 is a red flag, 2.0 is a common healthy benchmark, and lenders often write a minimum ACR into loan covenants that can trigger technical default.

Mike Thrift

financial-ratiosbusiness-loanssmall-business

July 26, 20267 min read

How the Fed's Rate Path Actually Hits Your Business Loan: A 2026 Prime Rate Guide

The prime rate — not the federal funds rate — drives variable business loan payments. It sits at 6.75% in mid-2026, with SBA 7(a) loans priced at Prime + 2.25%–3.0%. Here's the payment math on a quarter-point cut (about $37/month on a $250,000 loan) and how to plan around the Fed's uncertain rate path.

Mike Thrift

business-loanssba-loansinterest

July 26, 20266 min read

The SBA Just Doubled Its Loan Ceiling to $10 Million: How the New 7(a) + 504 Rules Work

As of July 4, 2026, the SBA decoupled its 7(a) and 504 loan caps, letting qualified borrowers combine up to $5 million from each program — $10 million in total SBA-backed financing. Here's who benefits, how the two programs differ, and the structuring mistakes to avoid.

Mike Thrift

sbasba-loansbusiness-loans

July 25, 20268 min read

Net Debt to EBITDA: The Leverage Ratio That Decides Your Business Loan

Net debt to EBITDA measures how many years of operating cash flow it would take to repay your debt. Lenders typically cap leverage covenants at 3.0x–4.5x, read below 2.0x as strong, and flag anything above 6.0x — here's how to calculate yours in ten minutes and avoid the mistakes that distort it.

Mike Thrift

financial-ratiossmall-businessbusiness-loans

July 23, 20267 min read

SBA's 2026 Citizenship Rule: What Non-Citizen Business Owners Can Do Now

As of March 1, 2026, SBA 7(a), 504, Microloan, and Surety Bond programs require 100% U.S. citizen or national ownership (with a 5% carve-out), ending green card holder eligibility. Here's who is affected and the financing alternatives — conventional loans, CDFIs, ITIN lending, and revenue-based funding.

Mike Thrift

sbasba-loansimmigration

July 22, 20268 min read

Merchant Cash Advances: Factor Rates, Confessions of Judgment, and the Stacking Trap

A 1.3 factor rate on a $50,000 merchant cash advance means $65,000 owed no matter how fast you repay — an effective APR that can exceed 300%. How confession-of-judgment clauses let lenders freeze bank accounts without a hearing, why stacked borrowers default at 3–5x the normal rate, and which states now ban COJs.

Mike Thrift

merchant-cash-advancesmall-businessfinancing

July 21, 202610 min read

Why the SBA's Easiest Loan Program Just Got a $750,000 Capital Requirement

The SBA's 2025–2026 Community Advantage overhaul caps CA loans at $350,000, requires lenders to hold $750,000 in unencumbered capital as of May 15, 2026, and freezes new CA SBLC licenses — here's what the shrinking lender pool means for startups and underserved borrowers seeking SBA-backed financing.

Mike Thrift

sbasba-loanssmall-business-loans

July 20, 20269 min read

Your Next Business Loan Might Get Approved by an AI Agent — Here's What That Actually Means

ConnectOne Bank cut policy lookups from 20 minutes to 30 seconds and grew banker adoption 41% in 10 weeks after deploying AI agents built on nCino's platform across commercial lending. Here's what agentic underwriting means for small-business borrowers — why DSCR math, standard-format financial statements, and clean, auditable books now decide whether approval takes days or weeks.

Mike Thrift

aibankingfintech

July 20, 20268 min read

Federal Regulators Tell Banks to Scrutinize Loans Tied to Work Authorization: A Guide for Immigrant-Owned Businesses

On July 13, 2026, the FDIC, OCC, and NCUA directed banks to tighten underwriting on loans to borrowers without U.S. work authorization, following a June CFPB statement reversing 2023 fair-lending guidance. Here's what the guidance says, how it affects immigrant entrepreneurs and their employers, and five concrete steps to keep financing accessible.

Mike Thrift

bankingimmigrationsmall-business

July 20, 20267 min read

The SBA's New MARC Loan: A Practical Guide to Revolving Credit for Manufacturers

The SBA's new MARC loan gives NAICS 31-33 manufacturers up to $5 million in revolving working capital secured by business assets only, priced around prime plus 3.25%, with no personal real estate collateral and no borrowing base certificates required.

Mike Thrift

sba-loansmanufacturingworking-capital

July 19, 20268 min read

CFPB Regulation B Overhaul: What the End of Disparate-Impact Liability Means for Your Small Business's Credit Decisions

The CFPB's final Regulation B rule takes effect July 21, 2026, removing disparate-impact liability from ECOA, narrowing the discouragement standard, and adding participant-level documentation requirements for for-profit special-purpose credit programs — a practical guide for small-business borrowers and lenders.

Mike Thrift

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