Best Practices of Requirements for an SBA Loan

June 22, 2010 - PRLog -- The Small Business Administration is on the web to give your business resources in order for you to start a business on your own, in turn creating more jobs and opportunities for the American public. Although the SBA does not make loans itself, it does guarantee loans made to small businesses by private and public institutions.  Furthermore, the SBA imposes rules and thus eligibility on all loans. Once you or your small business has the requirements necessary, you can become eligible for a loan and the SBA can then guarantee your loan thus giving your business the ability to grow and strive. http://smallbusinessloans.org/

If a small business seeks an SBA loan, a lender will request a loan guarantee from the SBA.  The SBA can approve or decline this request.  If the SBA approves a loan request, the SBA can guarantee repayment of that loan up to a certain percent if the small business owner cannot pay for the loan. Many small business owners believe that the government actually lends its own money to small businesses. This is no longer the case. Small Business Administration loans can be attained from SBA backed approved banks, but there are requirements that small business owners and individuals need to adhere to in order for them to make a good case to available lenders and in turn to receive the loan.  These requirements are good to have as a checklist to see if you have what is needed in order to get the desired goal of a small business loan. http://smallbusinessloans.org/sba-loans/

The actual requirements in question are: a business profile describing the business, a loan request to show how you will use the loan, collateral to show you have the necessary capital to put up for the loan, business financial statements, and personal financial statements. To go into a little more depth about the requirements, you will need to have the following specific statements to show a probable lender: balance sheets from the last 3 years, income statements showing profit or loss from the last 3 years, cash flow projections revealing how much available cash will be needed to cover loan payments, accounts receivable in a 30 day to 3 month span, and personal finance statements listing assets, liabilities, monthly payments, and tax returns from the last 3 years. http://smallbusinessloans.org/sba-loans/sba-loan-requirem...

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