Getting a SBA Loan for Solar Energy and Conservation Enterprises with Bad Credit

Having bad credit does not exclude you from receiving an SBA loan to support your business in solar energy and conservation enterprises; it just means you will need to work a little harder. The Small Business Administration, or the SBA, loan program for solar energy conservation enterprises is made up of several different loans including the SBA 7(a) Loan, the SBA 504 Certified Development Company (CDC) Loan, and the Pollution Control Loan. By knowing the basics of these programs and their eligibility requirements you can increase your chances of receiving a loan despite bad credit.

Consider Timing

Because of the Federal Government legislature of the past couple of years, through 2007 until 2009, it is a great time to apply for an SBA loan. The SBA has not only increased the number of loans it will approve but has also included new possible uses for their loans, including environmental conservation enterprises. So, regardless of your credit history, now is the time to apply for an SBA loan if you are interested in making your small business more eco-friendly, thereby saving you money on energy expenses.

Plan Carefully

Because of your credit history you can expect to have a more rigorous screening process when applying for an SBA loan to renovate ecologically or install energy saving devices. One way to be ready for this screening process is to have a clear plan beforehand, outlining how you will allot the funds should you receive a loan. You should be prepared to talk, in detail, about how you will use the loan to benefit your business and thus make the business both more successful and more environmentally compliant.

Approaching Your Mistakes

You should also be prepared to give details about why your credit history is less than perfect, what happened, what you would have done differently, and how you have learned from the experience. If you can prove that you have since become more responsible and knowledgeable about the workings of the credit system, by showing, with facts, that you are doing financially better than before, this will be impressive and increase your chances of obtaining a SBA loan. One important thing to remember is that the SBA can also benefit by providing loans; it is in their interest to provide loans to eligible applicants. If you can embrace your past credit mistakes and prove that you are moving forward, your chances of receiving an SBA loan to improve your energy efficiency will definitely increase.