SBA loans have been very popular with small businesses for quite some time, but the federal government is now overcoming requiring more paperwork on applications for these loans, and fewer businesses are being approved for them. Here are some ways that you can improve your chances of gaining approval for an SBA loan.
Provide Details on Your Loan Usage
Make sure to include information about how you intend to use the loan, as well as the exact amount you need to carry out your planned business usage of the money.
Include Information on Your Company Management
The government is always looking to know that a company is well-managed, so there is a reasonable expectation that any loaned money will be repaid, so you should offer as many details as possible about your company management.
Prepare All Necessary Financial Documents
These will include your tax returns, company balance sheets, profit and loss statements, and any other relevant financial documents which the SBA may want to review.
List Your Credit History
The SBA can look up your credit history of course, but it will save time and it will look better if you provide all that information yourself, without being prompted to.
Be Prepared to Provide Collateral
It’s quite possible that the SBA will ask you to provide collateral for your loan, so you should begin the process with some expectation of offering company assets as collateral.
Explain How You Will Meet Your Goals
When you apply for a loan, you will be supplying the SBA with a number of projections which you expect to achieve after making use of the loan. You should explain how you intend to meet these projections, and how the loan will help you to do that.
Expect Questions and Be Patient
It will be the job of the SBA specialist to ask as many questions as necessary to gain an understanding of the reason you need a loan, as well as what your business is all about. Expect this in advance, and answer all questions patiently, because there’s just no getting around it.
Thinking of applying for an SBA loan?
If you’re considering applying for an SBA loan, we may be able to help you. Contact us at Purevue Capital, so we can discuss options available to your business with regard to an SBA loan.