Complete procedure for applying the Small business administration loans

SBA is a best government agency which is founded to help the small and independent businesses across the country. For all US residents’ startup business loans are provided by Small Business Administration. We all know that SBA will not directly offer any business loans to small business owners and companies. But still it helps you in a great way in conjunction with other lenders.  It lessens the risk of the lenders in offering the business loan to the small businesses. So it is likely created a favorable situation when you apply for a small business loan you will be getting it without much complexity. If you are interested in taking up the Small business administration loans from SBA you need prepare all the required documents just as you are preparing for the traditional loans. You need to follow the same format too. Small business administration standards for providing the loans are obviously more flexible than the conventional bank standards.

Step by step Instructions to apply for Small business administration loans

  • Walk into your local bank and have an official meet with the bank startup business loans representative. Ask him the details about the small business administration loans. Present an overview of your business, business plans and how long you have been running the business and the experience you have gained regarding this business.  Enquire them whether the SBA loan will suit to your business and whether you can get qualify for the SBA loan. Also let them know for what purpose you are going to use the borrowed money in your business. Get the copies of Small business start up loans application form from SBA website and clarify the doubt if you have any in this SBA form.
  • Prepare your small business profile and present this as one of the part of your Small Business Administration loan package. Write a detail about your small business, operating strategy,  your annual sales, expected income, products and services you are going to offer through this business, total numbers of employees you are going to recruit, who will be your typical clients, future business enhancement plans, location of your small business, market competition, who will be your suppliers and the like information. Don’t forget to write a date on this business proposal, attach your resume along with your partners or managers if any.
  • You need to fill the SBA Form 4 it will require you to enter the purpose of getting this loan; you will need to mention the amount you are requesting from the SBA here. Give a small description on how this money will be used in your business, your payment schedule for the repayment; how your business is going to generate the revenue for you so that you can repay the loan etc. make sure this information is very important your lender will know the potential of your business through assessing this information.
  • In SBA Form 4a, you need to provide details on the collateral you are going submit for your SBA loan.
  • In SBA form 413, you need to provide details on your business as well as your personal balance sheet it will demonstrate your equity & fund you are requesting as small business start up loans. In addition to that you need to provide your lease copies, equipment license if any, purchase agreements, partnership agreements and franchise agreements.
  • Once you fill out the information and attach the necessary documents make sure all whether all the given information are correct, submit the forms to your lender and keep a copy with you. In case of additional document requirements, respond them promptly.


Leave a Reply

Your email address will not be published. Required fields are marked *