Tips on Preparing to Get an SBA Loan
It takes big steps to start a small business, and the most important one is getting capital. Getting a loan for any venture is tough, but things have gotten easier thanks to the Small Business Association. By backing a series of loans, new business owners have the opportunity to get funding with long remuneration terms and low interest rates. These SBA loans are a great way to finance your small business, but there are still some steps you need to take to help ensure you qualify.
Do Your Research
Not all institutions offer SBA-backed loans, and the ones that do have varied interest rates and terms. Take some time to find the best program that fits your particular needs, and seek out SBA preferred lenders as they have the ability to quickly process applications. When applying, make sure you know how much you need for your loan and the intended use of the funds. Having a good FICO score doesn’t hurt either, and may actually speed up paperwork processing.
Back To Basics
If you want to expedite the SBA loan process, make sure all of your documentation is ready. Since the SBA reviews all of these loans, there are certain basic requirements in place. Having a SBA preferred lender will be an asset in this case, as they can help lay out exactly what the standards are. Prepare to have your business’s credit score and financials dating back a few years, in addition to listing your personal assets and holdings. The application also requests information on how you plan repayment, as the SBA wants to ensure your business is in a good situation to pay back the loan.
Crush the Interview
In many situations, lenders will request an oral interview to discuss the intricacies of the loan. This is their opportunity to gauge you on a personal level, and your chance to relate how successful your business truly is. Prepare your business plan, paying special attention to how you intend to repay the loan, and make sure your statements have tangible data to back them up. By putting your most professional foot forward, institutions will feel more secure in agreeing to the loan.
Even after all of your diligent preparations, it is possible you won’t get approved for an SBA loan. Don’t give up; take some time to review your documentation and make sure you followed all of the SBA guidelines. Contacting the lender might offer some additional information on why your first attempt didn’t succeed. SBA-backed loans offer some of the best rates and payment plans on the market today, making all of your hard work worth it in the end.