A Guide to SBA Business Plan Loan Approval

Posted by stellarbusiness on July 21st, 2020

When you want to start a new business and want to turn it into a successful business plan for SBA, the first important thing which you as an entrepreneur should do to build a strong business is the need for a loan to make your business work.

Here are steps which will be involved to know everything about the whole SBA loan process.

1. Determining Your Business Project

When you plan to take a loan for your business, you need to determine your SBA project, which means gathering information about. If you are starting your new business, opening a franchise or buying an existing business, this knowledge will guide you along through the application process.

The whole process will let you know about the amount needed for funding. Moreover, without providing all specific details about your business, you won't be able to qualify for SBA loans.

Sometimes you may not be sure what type of startup you want to open as you won't be able to decide how much you can afford. For this, you can try pre-qualification for small business financing which you can fill online in no time with being private and informational. It will give a clear picture of funding possibilities and what amount of loan you are eligible for.

2. Identifying How Much Amount Is Needed

After knowing your business type, the next thing is to identify how much business finance you will require. And to get to know about it, you need to create a detailed financial projection which will include the cost for startups this. The process will make you understand your budget and also determine areas where you can cut some amount or save it.

Once you know about how much amount you will need, then you can jump to your research for business loans in which you will need to know about every aspect of the loan. Be its repayment terms, interest rates, the period of the loan and the monthly payment, as all this will have a direct impact on your business revenue flow.

To compare your business loan, you can check everything online. This will help you know about how much your monthly payment will be with different interest rates and repayment terms.

3. Choosing A Bank to Finance Your Loan

There are many banks and even SBA preferred loan lenders who will lend you money for SBA business plan. You should gather every information like what type of business do they fund and if they can finance your project or not as some banks and lenders are open to finance startups. In contrast, others will only provide investment for an established business. Moreover, if you like to enhance your chances of approving a loan, don't limit yourself in applying in one bank, as you may get rejected. However, if you think it's a very time-consuming process, you can always choose a reliable loan packaging services provider. These are helpful for you in succeeding a loan as they are experienced people who know exactly what things you need to put in your application. After your application is fully completed, they will forward it to multiple banks and lenders at once, which will not only save your chances and time to get a loan but will also get you multiple offers to select from.

4. Duly Complete Your Loan Application Package

After finalizing your bank, the next step is to put together the whole loan application package, which includes:

  • Bank Application Form - Obtain this form from your selected bank and fill it.
  • Personal Financial Statement - This form needs to be filled by each partner or owner.
  • Borrower Information Form - This form gives personal details and a background check.
  • Three Years of Personal Tax Returns
  • Professional Resume - Include a resume of every partner, owner or managing member.
  • Copy of Driver's License
  • Business Plan
  • Business Tax Returns.

After submission of the loan application, underwriting is signed with the bank to get your loan approved.

A lot is happening during the SBA business plan loan; however, you are going to succeed by following these steps.

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