When seeking financing for a small business, the Small Business Administration (SBA) is one place that business owners can go for funding. While the SBA can assist business owners in applying for a traditional business loan, the SBA also has its own loan program. The loans are similar to those from a traditional bank with the exception of specific SBA loan requirements which must be met in order to qualify for funding.
What Is A SBA Loan?
SBA loans are available for starting a small business, expanding a small business or acquiring a small business. Less common business loans available through the SBA include disaster loans, export assistance loans, military and veteran community loans, and some special purpose loans. The loans are only available through a participating lender, which you can find through a local SBA office. SBA loans are only given to small business that adhere to SBA anti-discrimination standards, which includes no discrimination based on religion, sex, national origin, color, marital status and race.
SBA Loan Requirements
When you are ready to obtain a SBA loan, the organization has a loan application that must be filled out by the small business owner. As part of the application, you are required to submit a personal background statement, business statements from the previous three years, a personal financial statement, a one-year financial projection statement for the business, your business certificate, copies of past personal and business tax returns, a personal resume for each principal in the business, a copy of the business lease, a history of the business and a list with the names and addresses of all owners, partners and subsidiaries of the small business. If you have already applied for small business loans through other lenders, then you also need to make a list of the application history.