If either you are starting a new business or trying to update an
existing one, you will most likely need a source of funds to do so. If you are not able to fund it yourself,
you will find yourself in a position of having to apply for a business loan. Most American entrepreneurs
consult with the SBA for that purpose. SBA stands for Small Business Administration and was created to assist
small to medium American entrepreneurs. It not only helps in getting your finances organized but it also
provides advice to small and medium companies. In case you need a business loan, the SBA can also help you
getting the funding from a partner financial institution.
Although the SBA does not provide business loans directly, it can
put you in the right track and help mediate the proceedings. If you own a small business you can apply for an SBA
guaranteed business loan. If you want this loan to be approved there are certain conditions that need to be
followed. Those conditions range from the nature of your business, to the purpose of the business loan, the
guarantee fee, the maturity period and your business size.
If you are serious about getting your business loan with the help
of the SBA, it is better that you gather the most amount of information that you can, to guarantee you meet all the
requirements for the said business loan. Consulting with your bank can also be a good idea.
You know you will need a lender for this endeavor and you will
need to inform him/them of all your companies' activities, profits and losses. It can happen that the lender
approves your loan right away. In the case the lender refuses your application, than you can ask him to provide you
with an SBA application form. That form should be completely filled and forwarded to the SBA. The process of
getting a business loan through the SBA is not has difficult as it seems, all you have to do is follow all the
steps the entities give you. For your convenience, here follows a small list of documents that are required when
requesting a business loan:
-Profit and loss statement and Balance sheet for the past 3
-Income tax returns for the past 3 years.
-Filled loan application form. (This form must be completely
-Cash flow projections for one year.
-History of business and how a statement on how an SBA approved
loan would help the business.
-Clear personal credit history.
- Personal financial statement.
-Cover letter and resume of the participating owners.
-Certificate of doing business.
-Business lease papers.
Do not forget to put all your efforts in getting your business
loan. Your determination will be as important in getting your business loan as the viability of your business