SBA Loans are government-backed small business loans for anyone wanting to get extra funding to expand or start their business. Later in this article, we’ll get into the requirements and how you can go about obtaining an SBA Loan for your small business needs but 1st let’s talk about business financing.
Whether you’re a dentist, chiropractor, lawyer, restaurant owner or another small company you know how necessary proper funding is for your business.
From meeting supply demands, having a marketing budget and paying those awesome employees you as the CEO/COO have a lot on your plate.
These loans are usually issued out by financial institutions such as banks but Brokers can help you receive funding through the application process as well.
SBA is short for Small Business Administration and a look through their website can give you insight into all the options provided.
What Do I Need to Be Approved for an SBA Loan?
Now that you have a full understanding of what SBA stands for and the fact that this is a government-issued loan let’s get into everything you’ll need to come out on the other side with your small business loan.
The following excerpt from Nerd Wallet will show you the top 5 steps you need to take:
“Qualifying for a small-business loan is easier when you’re prepared. Below is a to-do list that will help you get the cash you need to grow your business.
Whether you end up applying for an SBA loan through a bank or opt for an online small-business loan, you should be familiar with each lender’s requirements. Knowing whether you meet its criteria before you apply will save you time and frustration.
Here are five steps to help you qualify for a small-business loan.”
- Build credit scores
- Know the lender’s qualifications and requirements
- Gather financial and legal documents
- Develop a strong business plan
- Provide collateral
After securing each step in this process you have to decide what type of lender you want to pursue. A Broker can help you with this step and it’s a good idea to do your research beforehand to source a reputable Broker and potential lenders you’re considering lending from.
The Inside Scoop on Government Funding
SBA 7a Loan financing remains as one of the most cost-efficient choices you can get when securing business financing. Before considering private lenders and online companies be sure to see if you qualify for an SBA Loan.
The SBA 7a program reaches a wide range of business options from real estate (SBA 504) to brick and mortar stores, and equipment loans. All of these loans have low interest (around 6% or so) and premium financing. Loan options range from $5,000 to $5 million.
If you’re wondering why Uncle Sam is so keen on affordable business loans I urge you to consider the fact that when the citizens of the U.S. get affordable business loan funding then the country as a whole thrives with the success of a small business.
Remember that each loan program is different depending on your business goals and needs. Financing is the most important of your business and making the best financial decisions will place you and your business for ultimate success.
For more information or to speak with a reputable broker who can help you secure an SBA Loan contact us:
Keith McLaurin | Licensed Commercial Broker ID#01190109 / NMLS#1209195