If you’re a small-business owner, eventually your business will need to expand. Expansion can mean anything from taking on more staff, newer equipment and more customers and clients, or moving to a larger location, moving out of your home office and into one specific for business to purchasing more inventory. While many small-business owners like to be able to fund their business from either just the profits or out of their own pockets, this is not always possible or even wise. One option is to use an SBA loan program. But the question is, is there a good way to figure out which program is right for your business?
Before you consider any of the SBA’s loan programs, you need to have a deep understanding of your business as well as have a proper business plan that maps out not only the next six months but the next six years onward. In short, you need to be well organized and try and anticipate not only the needs of your business changing but also the needs of the marketplace. You need to spend a great deal of time on the various facets of your business plan because this is a document that, while ever-changing, will be what guides your business and what guides your business decisions as well.
The SBA loan program that you pick should fit in with your business plan. Of course, looking at your business plan is not the only thing that you should do. You need to do some research into the various loan programs that are available and ensure that you understand before beginning the application process to get the loan that you may need. This is where the SBA itself can come in very handy as it will work with you to not only ensure that you are the right SBA loan program but will also ensure that you understand exactly what is expected of you during the application process and once you have the funds.
An SBA loan program can significantly help grow your business because you may have the option of getting lower interest rates and more flexible repayment terms simply because you are working with your organization itself. Although it does require some research, it is time well spent.