Tips for Applying for an SBA Loan

As a business owner, you know that growing your business is challenging in the best of times. You need money to invest back into your company, but unless you’re willing to drain your savings or rely on a credit card to make those improvements, you’ll find the process incredibly difficult. SBA loans allow you to borrow the money you need to improve your business at an affordable interest rate. Unfortunately, not all businesses will qualify for those loans. Here are a few tips to help you increase your chances of getting the money you need.

Get Your Financial Documents Together

Before you start applying for a loan, you need to gather the necessary documents to start your application. At a minimum, you’ll want to provide lenders with your bank statements, current profit and loss statements, projected profits and a copy of your business plan. You should also include the amount of money you’re looking to borrow and detail how you’ll use the loan once you get it. This helps lenders decide if your business is worth lending to or if you’re too risky to partner with. Keep in mind that lenders may require additional documentation before they can process your application. They’ll let you know what they need once you apply.

Shop Around With Different Lenders

Not all banks offer loans backed by the SBA. Don’t hesitate to call different banks and credit unions in your area to see what types of financing they offer. Once you have a list of lenders that issue SBA loans, be prepared to speak with at least a few of those lenders.

Different lenders will view your finances in different ways and will offer you loan terms based on their assessments. This means you’ll want to shop around with lenders to make sure you get the best loan possible. Take the time to get quotes with at least three banks or credit unions. Compare those quotes closely and choose the lender that gives you the best interest rate and the highest loan amount.

Fill Out the Application Accurately

Any errors on your loan application can create delays in the review process. When you’re filling everything out, double-check each piece of information you enter. This way, you’ll be able to catch errors quickly and make the necessary corrections before the lender even sees the application.

Getting a good loan can make all the difference in your ability to grow your company and increase your revenue each quarter. Keep these tips in mind when applying for SBA loans.

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