What Do I Need to Provide to Qualify for a SBA Loan for My Small Business?

The Small Business Administration (SBA) was created around 1953 to assist small businesses. Over the years, it has evolved into networks involving other resources, such as lending, to help find funds for businesses to
grow. SBA loans are more flexible than your traditional loan from a bank. The loans are not totally dependent upon credit score alone. It is best to contact a lender who offers these loans and request a evaluation to see if you can qualify. There are several items you will need to provide.

Financial Statements: Expect to provide financial statement, that will have to be signed off by a CPA. The lender will probably request a minimum of 3 years. Also, be prepared that after you have completed the loan, that you will need to provided updated financial on a regular basis so as to monitor the progress of your business.

Collateral: These loans need to be secured by collateral, usually real estate. It may be a good idea, as commercial property is poised to follow the depression of the housing market, to look at purchasing a location for your business. Rates are low and prices are expected to drop significantly. You may want to even inquire if the lender you are working with may have a foreclosed piece of commercial property that you could purchase within your loan package.

Business Plan: Provide the SBA with a plan of where you business will be in the next coming years, regarding growth, projected expenses, revenues and cash management.

Description of Your Business: Describe what kind of business you are in, sales, length of ownership, owners, and employees. Include on the description why your business needs the loan.

Personal Financial Statements: All personal financial statements need to be provided by all owners, partners of the business and shareholders. Make sure these statements are accurate and true.

Proof of Incorporation: Provide proof that the corporation exist and is current, corporate books and seal.

Proof of Loan Denial: Provide proof that you could not qualify for a traditional loan through a lender.
The loan repayments can be up to 25 years. There are other considerations that need to be meet and you can view more details at www.sba.gov. Qualifying is not difficult so long as you provide all documents requested
and that they are accurate. When dealing with your lender, use them to advise you as you go along the process. Any problems, can only delay your loan. Remember, that there will be certain requirements that will also have to be maintained until the loan is paid off. Continue to use your accountant to help guide you in the financial health of your business.