How to Apply For a SBA Loan
The requirements to attain the SBA loan are usually less strict than other kinds of loans but no leverage is offered with the stipulations associated with the SBA loan. Therefore, it is critical to make sure that the entire documentation and presentation is prepared with utmost care, even for trivial things because usually financial institutions don’t have time to offer a second opportunity to any of the borrower. The demand is too high and the fast pace of life allows just one chance; make sure that you take full benefit of it otherwise you might rue these chances later.
There is no particular hard and fast format for the preparation of the SBA loan proposal. The important thing is to meet the lender and seek the requirements of the loan and try to fulfill them as much as you can in order to improve the chances of acquiring a loan. Never try to beat behind the bush, just present the information that is required by the organisation especially industry-specific analysis that will assist in luring the lender to assign you the loan amount.
Instructions
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1
Business Profile
In your proposal include the section of business proposal in which you will discuss about the type of business, its location, product or service, brief history (it should encompass the starting date of your business and the progress made so far) and annual sales. Other information that can be accustomed in this section includes number of employees, proposed future operations, competition, customers and suppliers. -
2
Management Experience
This section should deal with the curriculum vitae of each owner that is associated to the business. -
3
Loan Request
You need to explain the purpose of acquiring the loan and where will it be used. What will be the benefits, the business gain from the increase in finance through loan and what outcomes are expected? -
4
Loan Repayment
You should also incorporate a repayment procedure. The sources of the finance that will help you pay back the loan should also be discussed. Everything should be realistic because a slightest of unrealistic scenario can always dampen the chances of impressing the financial institution representatives. -
5
Collateral
All the properties, their addresses and preferably the pictures that will cater as the collateral for the loan should be a part of proposal as well. -
6
Other Items (can be part of the proposal but not mandatory)
- Letters of Reference
- Purchase agreement
- Copies of license
- Partnership agreement
