Due to the increasing number of small businesses making waves in the market today, non-bank lenders have taken the opportunity to offer Small Business Administration Loans (SBA Loans) to these entrepreneurs. Though there are a number of processes involved in being approved, here are the most basic requirements:
Find an SBA-Connected Lender – If you’ve already been turned down by a private loan company then you can apply for an SBA loan. Your search must now focus on finding a lender in MN that’s connected with the SBA express loan program and state your intention to file for it. Choose as many lenders as you can since SBA loans are offered by banks, credit unions, and commercial loan companies too. Start with those who already know you. If you aren’t familiar with anyone, have a contact refer you instead.
Prepare All Requirements – Your lender would be giving you a substantial number of requirements to put together before you can meet with them. Have your credit report evaluated by Equifax, Transunion or Experian for free. If there are errors, contact the bank to rectify those numbers. If need be bring documents and other relevant proof. Prepare a business plan that shows where your loan will be going, complete with financial projection. Also, put together your business’ complete financial history and your personal credit history.
Request for A Meeting – Make an appointment and dress in appropriate business attire. First impressions matter with most lenders. Come on time with all the requirements and documents you’ve prepared and be ready to explain it to them. You can bring along a business partner or adviser to assist you with your presentation. Also, you will be asked detailed questions so be ready.
The SBA Loan is perfect for refinancing company debts, improving your business’ cash flow or acquiring properties, equipment, and machinery. Once you’ve managed the meeting and submitted everything needed, the hard part is over. Just continue communicating with your lender while waiting for approval.