When your business needs a little infusion of capital, you might want to consider looking into SBA loans. These loans are backed by the U.S. government’s Small Business Association. Business owners often find it easier to qualify for a SBA loan than a traditional business loan. SBA loans are also attractive because they traditionally have a lower interest rate than other business loans.
If you are ready to obtain a loan from the SBA, you must meet certain financial and business requirements. The SBA website maintains a checklist for business owners to look at before applying for one of these loans. When you are ready to apply got a SBA loan, you must fill out an SBA loan application through your local SBA office and submit it with all of the required supplemental materials.
A large number of secondary items are required with the application. You must submit a personal background statement and financial statement as the business owner. Financial statements are also required for the business, including a one year income projection. You must provide a list that details all of the affiliates and subsidiaries of the business, a history and overview of the business, and the loan application history for the business. Income tax statements are required for both the business and the business owner for the previous three years. Copies of all business certificates and licenses, and business leases are required. As the business owner, you must also submit a copy of your personal résumé.
If you are looking into SBA loans to purchase an existing business, then additional information is required. This includes a P&L statement, a balance sheet, federal tax returns for the business from the previous two years, the proposed bill of sale, and the asking price schedule.
While the SBA guarantees the loan, it does not offer direct loans.