If you're considering starting up a business, then you've probably
thought long and hard about what exactly your business will be about and whom it will serve. Indeed, despite what
some may say, the fortune is not in the product, nor even in the service, but it is in the customer, and in knowing
your customer's wants, needs and problems. In fact, by simply asking your prospective clientbase what issues they
are having, they will in fact develop your product or service for you and that will take sometimes years off of
your journey to financial independence. However, even with the perfect product or service, if you don't have a
proper place of business and the equipment to do the job, you won't be in business for very long. And this is where
financial tools such as the SBA loan come into play.
But what in fact is an SBA loan? And is it something that will
help you create business success? First off, the SBA loan is a bit of a misnomer. In fact SBA stands for Small
Business Association. And the organization itself doesn't in fact hand out loans to small businesses. Created in
1953, the purpose of the SBA is to help ensure competitiveness in the marketplace by educating small business
owners regarding the process of getting business loans and also will aid them in approaching banks and other
lending institutions. The idea here is that ultimately the success or failure you have in obtaining a loan comes
solely from how prepared you are. But, the SBA will help you get prepared and teach you what you need to know in
order to put your best foot forward.
So, if an SBA loan is all about education, you might be wondering
if it will help you? After all, you just want a short term loan to start your business, you don't necessarily want
to go back to school to get it right? The problem with this "shortcut" style of thinking is that it will inevitably
lead to problems for you down the line. Consider for a moment that with the current state of economy, banks and
other lenders are tightening up and changing the requirements that must be met to obtain a loan. In order to be
successful in this endeavor, you need to know as much as possible about all the processes and procedures that go
into an SBA loan, as the more you know, the better impression you will make on the banks.
With that said, an SBA loan is something that is vital to your
business as it will enable you to get the knowledge necessary to obtain the funding you need. If your lender of
choice has the inkling that you don't know what is required of you, then your chance of getting that loan will
become very low indeed. There are several different loan programs run by the SBA as well, and knowing which one you
need is the first step to gaining the knowledge (and the loan) to sustain your business long-term.