When your business needs access to funding and is having difficulty obtaining it through normal channels, an SBA loan might be just what the business needs. Backed by the U.S. Small Business Administration, SBA loans are distributed through lending institutions that partner with the SBA. The standards for these types of loans are generally a bit more relaxed than standard business loans. However, SBA loans usually require substantially more documentation during the application process than a standard business loan.
If you are wondering how to get a SBA loan for your business, the answer is to simply meet the necessary qualifications. Before you apply for a SBA loan, you need to get together all of the documentation needed for the application process. An executive summary should be prepared to introduce the lender to your business and the industry in which you operate. Even if you are applying for an SBA loan through a local lender, you should never assume knowledge of your business or industry. The summary should also include details on how the business makes money and how you plan to repay the loan.
A business profile for the application should include the location of the business, the type of business, the business products or services, length of time in business and ownership history, number of employees, annual sales figures, competition profile, customer profile, supplier information and future operating information.
For each member of management, you need to include a resume to show management experience. Detail how the loan funds will be used, including the amount requested and purpose. Also detail how the loan will be repaid including budgets, cash flow schedules and sources of income for repayment.
The business should have assets to be used as collateral and a list of those assets go with the application. Personal financial statements, business financial statements and future projects are also need. Once you have all of these items prepared, you can contact your local SBA office to apply for a SBA loan.