Get information about SBA loans for your small business in this section of StartUpaSmallBiz.com .
Stay updated on the topic of SBA loans in this section of StartUpaSmallBiz.com .
SBA.gov is a website where prospective and existing small business owners can come for help. It’s divided up into several sections including starting and managing a business, getting loans and grants, getting contracts and seeking local assistance. Learn more about how SBA.gov (The Small Business Administration) can help you launch your small business and find long-term success.
Information and Advice
One of the main reasons why prospective small business owners go to SBA.gov is to get general information and advice about starting a small business. The site provides countless resources, including a learning center section for entrepreneurs and categories on starting and managing a business. Topics include everything from hiring employees to business laws and healthcare options.
SBA Mentors
The SBA also has a program called SCORE, which helps you find a business mentor in your area. You can talk to your mentor about your business idea and get expert advice on how to proceed via email or in person.
SBA Loans
A lot of prospective and existing business owners look to the Small Business Administration for help with financing. If you walk into a bank and ask for money to fund your business, the chances of getting approved aren’t that good. New small business ventures are extremely risky. But if you get approved by the SBA, the loan funds are guaranteed by the Small Business Administration, which greatly improves your chance of getting financing from a bank.
SBDC Centers
Small Business Development Centers (SBDCs) are scattered all over the country. They’re commonly located on college campuses, where students are studying business, economics and entrepreneurship. The representatives at an SBDC can help you develop your business plan, do research, find a business location, apply for financing and complete countless other tasks that are necessary to start your company. Just locate and call your local center to schedule an initial appointment.
There are a number of other ways that SBA.gov can help you establish and expand your small business. It’s good to know that there’s assistance out there when you need it.
An SBA loan is a loan that is backed by the government. A bank is much more likely to approve your loan request if it is guaranteed by the SBA. Here are a few tips for how to improve your chance of getting an SBA loan for your new business.
Get Your Credit Profile in Order
As you can imagine, one of the most important elements of a decision by the SBA on whether or not to back your loan is your credit profile. In most cases you’ll need a great credit history and score to get an approval. Before you apply for the loan, pay down your credit card accounts as much as possible. This will improve your credit utilization ratio and increase the chance of your score going up in the near future. Get caught up with any payments and avoid going over 30 days late with your debt accounts.
Spend Some Time on Your Business Plan
When you’re planning to apply for financial assistance from the SBA you really need to spend time crafting your business plan to perfection. Don’t just throw it together in a day – take some time to get market research, gather proof of your claims and hire an accountant to help you with the finances. Having a solid plan will improve your chances of getting a “yes” answer from the SBA and a small business lender.
Bring Something to the Table
When you apply for business financing, the bank and the SBA want to know that you’re personally invested in the company as well. There’s a slim chance that they’ll provide you with 100 percent financing — you need to come with cash savings and/or collateral to show them that you’re willing to risk some of your own assets for the sake of the business. Make some sacrifices and start putting some money away in advance of applying for an SBA loan.
If you intend to ask for an SBA loan approval to get your small business started, it’s a good idea to plan ahead. Use these tips to improve your chances of getting approved.
