Many business owners who need additional funding for their companies have difficulty obtaining loans due to low personal credit ratings, insufficient collateral, or unimpressive documentation. However, lenders are more likely to approve your application for a loan backed by the U.S. Small Business Administration. It is not easy to obtain an SBA-backed loan, but these effective strategies can assist you in successful SBA loan preparation.
The first step in SBA loan preparation is finding a lender you can work with. If possible, find an SBA preferred lender that can quickly and efficiently process your application. To locate possible lenders, use the grants and loans tool on the SBA website, and then compare the candidates to find one that works well for your situation.
Find Out the Loan Requirements
Work with the lender you have chosen to determine the requirements you need to meet to qualify for the loan. The SBA has its specific requirements; for instance, your business must be U.S.-based and for-profit, and you must have invested equity in it yourself. The lender may also have its additional demands.
Fill Out the Application
Be as accurate as possible when you prepare the application for your SBA loan. Among other financial details, you need to specify the amount of money your company needs and its intended use. The lender will accept your application and then forward it to the SBA.
You will need to gather the appropriate documentation to accompany your SBA loan application. This will include personal and business tax returns, financial statements from your company, and your repayment plan. If your business is new, you may also need to provide a business plan.
Prepare for the Interview
Your lender will most likely schedule an interview before the final approval of the loan. Conduct yourself professionally, and be ready to clarify any details in the application that the lender brings up.
For more advice and assistance in SBA loan preparation, get in touch with Hornet Capital Solutions.