How to Get Approved for SBA Loans
As you research loan options for your small business, consider loans that are designed for your specific situation. SBA loans are excellent for small-business owners who are looking to launch a new business or accelerate their business growth. Find out how you can take advantage of these flexible and competitive loans today by becoming approved for your SBA loan.
A loan administered by the Small Business Administration is approved through a third-party lender, either a bank or another financial institution. These loans typically don’t have the same credit score and financial history requirements of a traditional commercial loan, so they’re a great option for small-business owners who would otherwise not be approved for a bank loan.
In order to apply for your SBA loan, you’ll need to choose a lender. While all loans come through the SBA, each individual lender has a slightly different application and a set of criteria to approve loans. Look for a lender you’re willing to work with on a long-term basis, so you’ll have an established relationship for future loan needs.
An SBA loan is still based on the same factors of a conventional loan. While you don’t need a perfect credit score, it’s still a good idea to look for ways to build up your score before you apply. Similarly, a detailed business plan will go a long way to help you become approved for your loan. An SBA loan doesn’t require a long-standing financial history, but you should still include as detailed a history as you can. Be sure to clearly outline your business plan, financial projections and the purpose of the loan.
This is a good opportunity for your business as well. Carefully consider what direction you’re looking to grow, what you do differently and how you’ll outpace the competition. A clear business plan isn’t just a document required for a loan application, it can be a helpful guidebook to outline your journey. It includes helpful information for future employees looking to understand your business, like a mission statement, so take some time to really invest in a clear, engaging business plan.
With some additional patience and application materials, SBA loans can offer your business generous rates and loan amounts that you may otherwise not have access to. Don’t let an average credit score or short-term financial history hold you back from growing your business with the best loan options available from the SBA.