How To Get A SBA Loan

Posted on | August 26, 2009 | No Comments

SBA Loans - How To Get A SBA Loan

How to Get a SBA Loan

To apply for an SBA loan, you need to visit your local participating bank or lending institution. When you apply for an SBA loan you are actually applying for a commercial loan, structured according to SBA requirements, which receives an SBA guaranty. This guaranty is portion of the loan the SBA will pay back to the lender should you default on your loan payments.

The SBA offers numerous loan programs to assist small businesses.  It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions and does not offer loans to small businesses.

The applicant must satisfy the lender’s requirements before he or she can ask for a guaranty from the SBA, unless the borrower is deemed prequalified based on the person’s character, credit, reliability and experience (prequalification is for loans $250,000 or less)

To get an SBA loan, you must meet these criteria:

• A strong business plan
• The borrower must have a stake in the business
• A good personal credit rating
• Collateral
• Your background and experience in the business
• Condition or terms of loans

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