SBA Loan Application

Are you an ambitious small business owner interested in securing an SBA-backed loan? Perhaps you've heard about the ways that these secure loans can help you do the right thing for your business' future. You know that your business is doing well, it's consistently meeting financial obligations, and has a great plan for the future--you know it's the right time to apply.

But now what?

The truth is, the loan-application process has many steps and varies depending on the SBA loan you are applying for.

Some applications may require extensive documentation, including company charters, leases, and proof of appropriate licenses and certification. An SBA loan application can be daunting, and it is recommended that you consult your local lender before starting-as well as throughout the process.

Your lender can help direct you to the SBA program you are most qualified for, as well as explain confusing aspects of the SBA loan application. What follows are some tips for a successful application-no matter which type of SBA loan program you are applying for.

Get it on paper...

You may be a brilliant entrepreneur with a sure-fire plan your business' growth, but if you don't communicate this to those reviewing your application, you won't make the cut. The SBA and most lenders expect you to clearly present the most important information about yourself and your business in the form of a written loan proposal. This proposal includes information about your company's history as well as your own business experience. It should clearly explain how and when you expect to pay to back the loan.

The written proposal portion of an SBA loan application should also include the amount of the proposed loan, and what you expect the loan to do for your business. Your lender may be able to help you prepare your proposal, but the watchwords are clarity and brevity.

The devil is in the details...

Along with your written loan proposal, lenders and the SBA require SBA loan applications to include a comprehensive view of your business. Don't forget to be thorough, making sure to include all the information needed to paint someone a clear picture of your business. What this entails will vary from case to case, but some essentials are:

• the location of your business' sites,
• what services your business provides or products it sells,
• information regarding your customers, competition, and partners
• your best description and numbers describing where your company's been and where it's headed.

When outlining your business' history and how you plan to repay your SBA-backed loan, it is essential to include as detailed financial information as possible, explaining revenues and expenses. This portion of the application is intended to give insight into how you run your business.

The personal touch...

The decision-making process for approval of an SBA loan application involves more than just number crunching. That's why it's extremely helpful to demonstrate the high-caliber of businesspeople you and your associates are. This can be difficult, but including the following information will help the people reviewing your application get to know you:

• curriculum vitae for the company's owners and decision-makers,
• recent (current within 90 days) financial statements for all those with a 20% or greater stake in the business.
• information about your education, skills, and experience, and letters of recommendation-whenever possible.

Presenting yourself as a competent experienced businessperson-who is reliable and a pleasure to work with-can go a long way towards the success of your SBA loan application.

Applications for SBA loans are weighted by the considerations of good ideas and good character more than other types of loans. An SBA loan gives a business owner extra latitude, so lenders and the SBA want to see that the borrower has a personal stake in the business. Above all, it is essential that your SBA loan application makes clear that you have the dedication and know-how to turn your loan into profits for you and your lender.