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Applying for an SBA Loan
July 23, 2007
In order to be eligible for a Small Business Administration Loan you must have applied and been turned down for financing by a commercial lender. The SBA will not guarantee a loan if a business can obtain funds from an ordinary lending institution such as a bank or other private source.
After being turned down for conventional or private financing, you may then go forward and apply for financing for your business under one of the SBA Loan Programs.
To get started the SBA recommends you have the following paperwork with you when applying for a loan under any of its loan programs:
- Business Plan. A written document that describes a business, its objectives, strategies, market and financial forecast.
- Business and Personal Financial Statements. Formal records of a business’ financial activities. These statements provide an overview of a business’ profitability and financial condition in both short and long term.
- Loan Request. A description of how the loan proceeds will be used, along with the purpose, amount of loan request, and type of loan requested.
- Collateral. A description of the collateral, if any, that will be used to secure the loan.
- Resumes. The resumes of those who will be involved in operating the business.
In addition to providing all of the above, you should be prepared to discuss your loan proposal in detail with your lender. For more information on SBA loans take a look at the following sites:
Posted by Shanu Singh Guliani on July 23, 2007 | Comments (0)
