Are you fighting to find funding for your small business? Thankfully, the Small Business Administration backs loans from lending institutions to help business owners get needed capital. Here are three ways to apply for SBA loans.
Small Business Development Centers
The SBA funds Small Business Development Centers (SBDCs) alongside other supporting groups. These centers give small businesses guidance, training, and counseling, whether they are brand new or already in business for some time. You can find centers in every state by searching the SBA website.
SBDCs provide help in various areas, including business planning, operations, strategy, importing and exporting, sales, management improvement, growth and expansion, innovation, increased productivity, development of new technologies, problem-solving, financial management, marketing, and personnel administration, and technical assistance. SBDCs are outstanding helpers to assist your business and walk you through the SBA loan process.
Lender Match is a free tool provided by the SBA to match you with a lender. Fill out the online form, and SBA representatives can pair you with a lender within two days.
There are no promises that you’ll be a good match with a lender, but you can do some things to help your odds. Determine the exact amount of money you need and how you’ll use the funds. Be ready to share your level of experience in your field and credit history. Prepare a business plan and detail your financial projections. This gives the lender confidence that you understand your industry and have a solid plan to pay back the loan. Decide what you can use as collateral in case that is a loan requirement.
Remember that the SBA does not provide loans. The department only backs the loans that a partnering lending institution approves. You don’t have to approach the SBA first. You may prefer to go to a bank or credit union and see if they have SBA-certified underwriters that work in the institution’s SBA loan program.
In any case, it’s good to involve an expert in your loan decision since you must decide if you need an SBA 7(a) loan or a 504 loan. There are various loan products under these two categories, and an experienced guide can assist you in finding the right fit.
The SBA is an excellent option for small businesses that struggle to find other financing sources. Patiently research your alternatives to decide which SBA loans you may qualify for and get needed funding to help your business thrive.