What You Need Before You Apply for an SBA Loan
SBA loans are those provided to small businesses by lenders working with the Small Business Administration to help these businesses get up and running, and to help maintain smooth operations. Although the SBA itself does not provide funding, it does guarantee a certain percentage of these loans to the lender, so that approval becomes more likely. Before you apply for an SBA loan, it’s best to have all your ducks in a row, so as to increase your chances of being approved.
Before applying to a lender for an SBA loan
First of all, it will be necessary to prove that you are a for-profit organization, that you intend to do business within the U.S., that you have at least some capital to invest yourself, and that you have exhausted other means of securing funding. The SBA has developed a program which is extended to business owners for the purpose of analyzing their application prior to taking it to a lender. Experts at the SBA will review all materials provided by a business owner for completeness, and for a number of other factors which will be gauged by the eventual lender.
Some of the areas reviewed will involve the business owner’s personal credit, company history, personal character, and reliability. From a business standpoint, business credit history is closely evaluated, along with the most important financial ratios, as well as the actual request for a loan. If a strong business plan is lacking, the SBA coordinator will work with a business owner to help strengthen the business plan, or to develop one where it is entirely lacking. One of the most beneficial aspects of this SBA qualification review is that there is no charge for the service, whereas any other for-profit organization will definitely charge for the service.
SBA Loans through FinCentral Capital
We at FinCentral Capital are glad to work with the SBA on loans for small businesses. Contact us today to discuss your small business loan needs, and our financial experts will assist in any way that we can.