The United States government established Small Business Administration for assisting entrepreneurs in expanding and developing their respective business pursuits. SBA facilitates the provision of government small business loans and the management of lending programs for loan applicants that are rejected by most lending institutions. Even though SBA does not directly hand out loans, this government agency may become immensely helpful to your attainment of commercial success. You just have to follow the achievable steps presented here in order to acquire SBA-assisted business loans.
Experience Rejection from a Traditional Lending Institution
You may find this step strange, but this is definitely a necessity. There have already been multiple instances wherein entrepreneurs, who did not ever have a rejected loan application, were not assisted by the Small Business Administration in their acquisition of government small business loans. You just have to be declined once in order to be assisted by the SBA. However, it may raise your chances if your loan application has been disapproved by numerous lending institutions.
Seek the Help of Small Business Development Center
The SBDC directly assists small business owners and entrepreneurs by providing them education and consultation regarding vital business matters. You can expect SBDC to form or strengthen your relationship with at least one local lending institution in order to increase the possibility that you will be awarded with a business loan.
Process and Submit a Comprehensive Business Plan
You must allocate a lot of time and dedication for preparing an excellent and elaborate business plan. Your business plan must contain as many significant details as possible. Your plan must be able to reasonably project how much will be spent for various business activities, how much will be earned within a certain time-frame and when will you be able to repay your lender. You have to thoroughly review your plan several times before submitting it.
Ensure that You Have an Appealing Credit Record
You must obtain credit report copies from Transunion, Equifax and Experian. Keep in mind that government small business loans cannot be provided to aspiring borrowers who have any outstanding monetary liability. You have to meticulously review the entries placed in the requested credit report copies. You must report any observed inconsistency or inappropriate entry. If your credit reports reveal that you still have unsettled financial concerns, then you must first attempt to those issues before trying to acquire a decent small business loan.
Personally Consult a Banker from SBA
You must approach a banker from the Small Business Administration in order to learn about attainable government small business loans within your state. The said government agency offers a broad range of lending programs which include short-term ones for those who desire to address urgent capital-building necessities and special loans for entrepreneurs who have businesses situated in impoverished or rural settings.
Make Sure You Have a Viable Application
You can seek the assistance of your SBDC Counsellor to make sure that your loan application will be seriously considered. You have to ask if your business plan is already detailed enough and if there are concerns regarding any other loan requirement. You must only send all the requirements to your selected moneylender after you have thoroughly evaluated such requirements.