4 Things to Know Before Applying for an SBA Loan

SBA loans are a great option for small business owners and are designed to help them be prosperous in their communities. Some use an SBA loan to start a business from the ground up while others choose this loan to expand their existing operations. We’ve highlighted 4 areas that are important to consider before you apply for an SBA loan.

4 Things to Know Before Applying for an SBA loan

1. Financing Needs

Lay out your needs and plan of action so that you and your lender understand how your funds will be used. Having a comprehensive business plan is an essential tool when going through the lending process. Preparing and understanding your business model gives your lender a concrete idea of your goals and financial needs.

2. Eligibility Requirements

In order to qualify for an SBA loan, there are various requirements set by the federal government and lenders that a business must meet. Eligible businesses must be:

• An official operating business.
• Located in the United States.
• A small business, as defined by the SBA.
• Creditworthy.

3. Documentation

When it’s time to submit your SBA loan application, you will be asked to supply various documentation. Personal and business financial statements, a business license, loan application history, tax returns, and existing debt provide your lender with a look into your financial performance. Timeliness is crucial so identify all the documents you’ll need to avoid delays in the application process.

4. Finding an SBA Lender

One of the most important steps to consider when applying for an SBA loan is finding the right lender. An SBA lender is going to work closely with you throughout the process to find the right solutions that meet your business’s needs. At BOS, we have a team of experts available to answer your questions and are proud to be an SBA preferred lender.

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations.

To learn more, visit www.sba.gov