The Small Business Administration (SBA) offers specific steps to aid you in understanding how to get an SBA loan. These steps are straightforward, but they do not guarantee acceptance to any business owner who follows them. The steps on applying for a business loan are listed as a guideline but approval depends on numerous factors. This approval depends on your application as well as market considerations at the time you apply.
Write a business plan
The first step to take prior to applying for any type of loan for business is to have a plan for your business. The SBA provides understanding to the key components of a successful plan on its website.
Provide a down payment
You must provide some equity on your own to qualify for an SBA loan. Typically, you need to aim to provide at least 10% down.
Apply for private loan
You must apply first for a private loan before going to the SBA for a guarantee. If a private lender accepts your application, you will then not be eligible for an SBA loan guarantee. Only when the lender decides you initially do not qualify for financing but will qualify when you have an SBA guarantee should you take the step that is next.
Apply for an SBA Guarantee
When you have applied for a loan that is private through an approved SBA lender, the lender will send the paperwork for an SBA guarantee for you. Otherwise you might consider going to your local SBA office to obtain paperwork needed to apply for a guarantee.
You can consider going to your local SBA office to obtain paperwork to apply for a guarantee. This paperwork is available online also. You can also read through their website to get any further information that you need.