Small Business Administration 7(a) loans are one of the best ways to finance your small business.
They're guaranteed by the federal agency, which allows lenders to offer them with flexible terms and low interest rates.
Getting one, can help you grow your business without taking on possibly crippling debt.
SBA loans, as the 7(a) loans are also known, are the agency's most popular type of financing. There's one big downside, however: It can be tough to get a loan from the SBA.
The SBA does not provide direct loans.
To begin the process, you will need to complete an SBA loan application form and collect the necessary supporting documentation.
When it's time to move your business forward, Winston Rowe & Associates provides processing, due diligence and submission to SBA capital sources across the Nation; you can contact them at 248-246-2243.
Use the checklist below to ensure you have everything a SBA lender will ask for to complete your application.
Personal Background and Financial Statement
Statement of Personal History - SBA Form 912
Personal Financial Statement - SBA Form 413
Business Financial Statements – To support your application and demonstrate your ability to repay the loan, prepare and include the following financial statements:
Profit and Loss (P&L) Statement – This must be current within 180 days of your application. Also include supplementary schedules from the last three fiscal years.
Projected Financial Statements – Include a detailed, one-year projection of income and finances and attach a written explanation as to how you expect to achieve this projection.
Ownership and Affiliations – Include a list of names and addresses of any subsidiaries and affiliates, including concerns in which you hold a controlling interest and other concerns that may be affiliated by stock ownership, franchise, and proposed merger or otherwise with you.
Business Certificate/License – Your original business license or certificate of doing business. If your business is a corporation, stamp your corporate seal on the SBA loan application form.
Loan Application History – Include records of any loans you may have applied for in the past.
Income Tax Returns – Include signed personal and business federal income tax returns of your business' principals for previous three years.
Résumés – Include personal résumés for each principal.
Business Overview and History – Provide a brief history of the business and its challenges. Include an explanation of why the SBA loan is needed and how it will help the business.
Business Lease – Include a copy of your business lease, or note from your landlord, giving terms of proposed lease.
If you are purchasing an existing business, the following information is needed for purchasing an existing business.
Current balance sheet and P&L statement of business to be purchased
Previous two years federal income tax returns of the business
Proposed Bill of Sale including Terms of Sale
Asking price with schedule of inventory, machinery and equipment, furniture and fixtures
SBA program one of the smartest ways to fund your company.
With some know-how and preparation, you may be able to secure some of the lowest business financing available.
If you don't qualify for an SBA loan, there are other faster, more accessible ways to borrow money.
Winston Rowe & Associates has access to a full spectrum of capital sources to meet almost every commercial real estate financing solution.
You can check them out on line at http://www.winstonrowe.com or give them a call at 248-246-2243
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