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Unlike other commercial loans, SBA does not provide direct loans. You can apply for the loan through SBA’s partner lending institutions like community banks. If the applicant meets the requirements, he/ she can ask for a guaranty from the SBA. Here are things that you need to do to get an SBA Loan.
Have A Stake In The Business: The SBA never underwrite 100% of the business venture, they want to see that you put your own money into your own business. Some loan programs may require that you invest 25 -50% of the amount requested. If you are looking for $100,000 loan, it is a good idea to invest about $25-50,000 in the business before applying for the loan.
Have A Strong Business Plan: SBA wants to you to have a clear understanding of your business. You need to research and know the prospects of your business. Like any other lenders, they want to make sure that you will be able to repay the loan. A detailed business plan is very important and necessary.
Have A Good Personal Credit History: Paying your bill on time is always important. Your credit history is your credit worthiness.
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