SBA Loans Application

As a small business owner, you understand that every business would come to a point where they’ll need help in terms of funding or financing the business. Not all businesses are rich – not all of them have the funds and the resources they need for expansion, for maintenance, and for the continuous operations.

Luckily, there are a lot of options on how businesses can get funds, one of which is through the help of the Small Business Administration (SBA). The SBA is a government-owned agency that aims to help, assist, and support small businesses.

They provide loans and funding for entrepreneurs, startup businesses, and even existing small businesses that are in need of funds and assistance. Just like any other process, you need to apply for any of the SBA loans they offer.

SBA Loans

The SBA has a set of different loans with different purposes. There are a total of six (6) loan programs and types they offer, each having different requirements, qualifications, and even a slight difference in terms of the application process.

The six SBA loan types are: SBA 7(a) loans, SBA CAPLines, SBA Export Loans, SBA Microloans, SBA Disaster Loans, SBA CDC Loans or the 504 Loan Program. They all have their own requirements and eligibility qualifications but the overall SBA loan application is technically the same.

Application Process for SBA Loans

This is where it gets tricky – and difficult. Unfortunately, only businesses with excellent credit scores, good standing, and those that are well-established are the businesses that are capable of being approved of an SBA loan.

The processes, requirements, and the qualifications they have are difficult and that’s the reason why not all small business loan applications are approved by the SBA.

Qualifications and Requirements for SBA Loans Application

To be able to apply for an SBA loan, they require the following qualifications:

• Must be a business in the U.S.or operate in the U.S.; and must be a for-profit business
• Should have a reasonable owner equity
• The business wouldn’t be able to get funds from any other lender
• Must have used financial resources before asking for financial help

SBA Loans Application Procedure

The process on how small business clients can apply can be broken down into four (4) different steps:

1. Checking the eligibility and the choosing the program
2. Finding a lender
3. Preparing documents and paperwork
4. Completing the application form and other forms

Eligibility and Program

The SBA offers six (6) different loan programs. But first, you need to check your eligibility first. As mentioned, it’s not easy to become eligible for an SBA loan – the business needs to be in good standing and it must be well-established.

Finding a Lender

You might be confused – the SBA is not the one giving the funds, they’re just the middleman. When you find out that you’re eligible, you need to find a lender.

Documents and Paperwork

Once you’re able to find a lender, you now need to prepare and gather all of your documentary requirements and paperwork. You’d need to provide the following:

• Amount you want to borrow
• Business plan on the fund usage
• Cash flow
• Annual and monthly revenues
• Profit and loss statements
• Business tax returns
• Resumes of owner/s
• Proof of ownership
• Business license