There are numerous types of SBA loans available and many of them
are designed to be quite useful and helpful however deciding upon exactly what you need and how to get it is
sometimes. While there are numerous programs that are designed to work for small business owners it is very
important to ensure that you know what you need to have in order to really improve your businesses chance of
securing a SBA loan.
First, you must be turned down for a loan from a private financial
institution in order to be eligible to apply for a SBA loan. Once you have a formal denial from a private lender
you are able to apply with the SBA for a loan.
Second, you need to have a well written business plan. This does
not mean you simply toss together a few pages of material. You need to ensure that you have information in the
business plan about the purpose of the business, the business structure, how long it has been in operation, and any
information that is relevant to the type of business you have.
Third, you need to have some financial information for both the
business and all people who own at least a 20% share of the business. You need tax statements for at least the last
3 years for the business, and you also need to include P&L statements for the next two years based on realistic
sales from the previous 3 years. For personal financial records, you need to include tax returns and any other
relevant financial documents.
Fourth, you need to include information about why you are
requesting the loan, how much you need the loan to be for, proposed repayment information and information on what
will be used as collateral for the loan. This is very important and needs to be kept in line with figures that are
realistic to be paid back based on the current performance of the business.
Lastly, you are going to need to have a complete detailed resume
for anyone who will be in a management position in the business. You do not want to just have an application for
each management person, but rather a very detailed resume that covers all of their relevant experience so that you
know the SBA loan officer will agree the business is in knowledgeable hands.
As you can imagine being approved for a loan is not always an easy
task, however ensuring that you are prepared before attempting the process is a sure way to ensure that it goes as
smoothly as possible with the fewest complications. Your business needs your help and determination to ensure that
it is successful. Spending the time to prepare the proper documents will ensure that your business has a much
better chance of having the loan improved to handle all of your needs quickly and easily.