Getting a Loan from the Small Business Administration (SBA)

Most everyone knows that the the main purpose of the SBA is to assist small business owners in getting the necessary training and financial assistance they need to expand their companies. Not to start up companies, mind you, but to nurture existing companies. Use the information in this article to learn how to get a loan from the Small Business Administration.

There are advantages in getting business loans through the SBA. The loans have longer pay back times and lower payments too. This makes the loans more affordable.

To get a loan for your thriving business, you'll need to first contact SCORE. This "service corps of retired business executives" can assist you by giving you business advice and counseling at no cost. This non-profit organization has nearly 400 chapters across the U.S. so it should be easy to find an office near you.

Then, you must determine how much money you have and how much money you'll need to keep your business going. After that, you'll need to contact the SBA through their website. Or email the organization or phone them to find out general information about their available small business loans.

Determine what type of business loan you need. Then, find out what type of paperwork you need such as an SBA application, specific financial statements, personal resumes, collateral, et cetera. You'll need a loan proposal for either type of loan.

To get a loan from the Small Business Administration, you'll need to find a bank or other lender in your locality that deals with small business loans. Contact them and submit the loan proposal package to them. Ask the prospective lender, if they turn your loan down, if they'll reconsider your loan if it's backed by the SBA's loan guaranty program. SBA can guarantee up to 85% of a small business loan. If the lender agrees to talk to the SBA, they'll send your loan application along with a credit appraisal to a SBA office that's closest to your location.