Finance Your Small Business with an SBA Loan
If you are having a difficult time getting your business loan approved, then do not hesitate to get help from the SBA. The SBA or Small Business Administration is government organization especially created to assist small-scale businesses.
Aside from helping a small business obtain financing, the SBA also offers other assistance programs including counseling and advice. In this article, we will be taking a closer look at SBA loan programs available to you.
How is Business Financing Provided?
IT’s important to understand that the SBA does not directly provide funding to small businesses. Instead, it helps small business owners get the financing they need from an accredited lending company. A lending company that is certified by the SBA will surely provide loans with fair terms of repayment so you can get financed by a trusted lender.
In addition, the SBA will review your loan application and evaluate your eligibility for a loan. Once approved, the SBA will guarantee the small business loan to get positive approval from a lender. OF course, if your application is backed-up by the SBA, a lender would be more confident to grant your proposed loan.
Who Are Eligible for SBA Loans?
For more information, check out the SBA’s website to see the (http://www.business.gov/financing/loans/sba-loans/sba-loan-application.html) complete list of documents you need to prepare.
SBA Loan Application. The application form that you need to submit will vary depending on the type of SBA loan program you wish to apply for. The forms are available from the SBA’s website. Be sure to provide correct details to avoid unnecessary delays or rejection.
Personal Financial Statement. As the owner of the business, you would be required to submit copies of your personal financial statements such as pay slips and income tax returns.
Business Financial Statement. You must also prepare to submit balance sheets or financial records of your company for the previous months or year (if applicable). You must also include your business income tax returns and business income projections for the coming year.
Business Certificate / License. You need to prove that you are running a legitimate business. Thus, you must submit business licenses and permits along with your loan application.
Loan Proposal. In your business proposal, you must clearly present the type of business you are managing, a brief history of your company and the reason why you are seeking an SBA loan. Don’t forget to show how this form of financing can help your business, how you plan to utilize the funds efficiently, and how you will be able to keep up with repayment.
Irish Taylor is a bussiness loan consultant with Startup Business Loans and has been providing consumers and business owners with startup business financing since 1992. For years she has helped people with credit and loan problems especially pertaining to business start up, SBA loans and Unsecured loans.
Copyright 2010.
Related Article: Borrowing Money To Build Your Business
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