Applying for SBA Small Business Loans the Right Way

To apply for SBA small business loans, applicants must write a loan proposal. It should include a cover letter or executive summary. It should succinctly explain about you, any business experience, type of business, loan amount needed and what for, how you plan to repay, benefit of the loan to your business, and the terms of repayment you want.

Proposals for SBA small business loans need to explain to the reader particular details concerning your industry and any penchants in your niche that effect your business. Include the business name, principal's names and social security numbers, number of employees, equity, collateral, and financial statements. How strong your financial statements are is very important in getting SBA small business loans.

Parts of Financial Statement and SBA Small Business Loans

  •  Three fiscal years of balance sheets
  •  Statements of income
  •  Projections of cash flow
  •  Personal financial statements

All of the data should be current when applying for SBA small business loans. Mention changes in the operation of your business. It normally has less information in it than a business plan, but keep in mind it needs to be professionally executed. Type the proposal and organize it. Don't under estimate-projected costs or inflate revenues. Include a section that explains how you came up with your dollar amount of sales and expenditures.

Prospective borrowers should explain the most important aspects of their business when applying for SBA small business loans. All of the data should be current. Mention changes in the operation of your business.

Proposals for SBA small business loans should answer all-important questions like how much, why, when. Never think you can obtain a small business loan through a talk with the lender and no proposal. To be approved for SBA small business loans you have to provide more information than for a personal loan. Getting these loans is usually a long process so waiting too long is a mistake; planning for your businesses monetary needs is very important.

Never attempt to keep your business and personal financial history from the lender when applying for SBA small business loans; he can view your credit report. Don't think that your lender believes in your business like you do; you must demonstrate with your proposal how it will succeed by delineating your plan when applying for SBA small business loans. But be concise.

Take enough time to gather and organize your business documents. Include the history of your business, plans for the future, and strategies for marketing your business. Provide details of the businesses legal structure. Make sure you explain your company's products. A checklist of what to put in proposals for SBA small business loans can be seen at www.sba.gov. Prospective borrowers that write good proposals have a better chance of obtaining SBA small business loans.