If you are looking to borrow money for your small business, SBA loans may be a good choice. With strict restrictions on the amount of interest the bank can charge, as well as restrictions on fees and the like, these are a great way to borrow money. I’m going to give you a quick checklist of things to do in order to plan for acceptance into one of these programs.
First, you’ll want to have a solid business plan. Your plan should include your financial needs and plan statement, as well as a statement of your operational costs. For more information on how to create a complete formal business plan, you can actually contact the Small Business Administration office in your area. Ask to have a trained financial counselor look over your plan and offer advice and assistance. This is a critical step in approval for SBA loans.
Beyond your business plan, you’ll have to prepare a number of additional financial documents. For one, you’ll want to get a credit report for both your personal credit and that of your companies, if possible. You’ll also have to prepare accounting documents that outline your income/revenue and your regular operating costs (beyond those projected in your business plan).
Once you have all these documents prepared, you should contact your local SBA office for any additional requirements based on your personal circumstances. These criteria are based on an average of small businesses that get approved for SBA loans.