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SBA Loan Tips for Business Owners
If you plan to acquire a business loan for this year, be sure to check out the available programs from the SBA (Small Business Administration). In this article, let’s talk about tips that will help increase your chance of getting your SBA loan application approved.
Apply for the right program. SBA loans can be categorized according to the purpose of the loan. There is an SBA loan program that is especially designed for start-up businesses while there are loans which can be used to grow or expand an existing business. It’s important to get to know the specific programs available so you can apply for the type of financing that’s right for your business.
Check out credit unions. IT’s important to understand that the SBA does not directly provide financial assistance to businesses. Instead, it only offers guarantee to help a qualified business get approved for the loan. Find lending companies in your locality which have partnership with the SBA. Don’t forget to check out credit unions as well as some of them are accredited by the SBA or Certified SBA Lender (CLP). It will be your chosen lender or credit union who will forward your application to the SBA, subject to the SBA’s approval.
Preparing Your Loan Proposal. A potential lender would be interested to see how you plan to utilize the loan in case your application gets approved and how you intend to keep up with the repayment. Hence, your loan proposal should include a brief summary about your business, the exact loan amount you need, and how you plan to pay the loan.
Along with your proposal, you must present the specific details about your company such as the structure of your business, a report of your finances, projections for the year, your employees, relationship with vendors, etc.
Prepare the Paperwork. Aside from your loan application, you will also be required to submit additional documents. Check out the complete list of documents required by the SBA from this website: http://www.business.gov/financing/loans/sba-loans/sba-loan-application.html. Basically, the list includes personal finance statements of the business owner, business financial statements for the last 3 years, personal and business income tax returns for the last 3 years, financial projections for 1 year, business license, etc.
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 2011.
Related Article: Borrowing Money To Build Your Business
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