Starting your own business is not for the faint of heart. From creating a business plan, to creating a launch & marketing plan, to managing your expenses and staff – you will have your hands full. What you’ve most likely realized, the key to success can be a good network and knowing exactly who and what resources you have at your availability.
One of the resources you may have come across in building your small business is the U.S. Small Business Administration (SBA). This organization exists to provide small businesses in the United States access to business financing, entrepreneurial development, subcontracting procurement opportunities and small business advocacy.
I’ve already launched my business and it’s off the ground – what’s next?
There is no lack of funding opportunities in the U.S. financing market, however, finding the best loan for your small business can be the key to your exponential growth year over year. In your search for funding, you have most likely come across SBA loans. An SBA loan is not owned by the U.S. SBA; however, it is partially guaranteed by the government. This eliminates some of the risk that a network of lenders would incur at the demise of your small businesses. By being able to cover up to 75-90% of the loan in the chance of default, the SBA allows for a much larger network of financiers willing to do business.
What are the requirements to get an SBA loan?
Since there are many different lenders that offer SBA loans, rates and requirements can vary slightly. Very generally, your eligibility and rate will be based off your business size, what your business does and how your ownership is structured. Each lender is going to have a specific set of requirements it looks for, but you can take certain steps to ensure your small business is aligned properly to receive a competitive rate. One resource the SBA offers is a sizing chart which allows your small business to determine just how large it is. Having this information is going to be detrimental in applying for funding.
How can I get an SBA loan?
You’ve already taken the proper initial steps by doing research on what is required. By assessing your business size on the SBA site, you can begin your process of collecting all the documents and information required to apply for small business funding. Gathering all this information can be a time-consuming process, let alone doing it while managing your small business. Small business owners can meet with local business consultants like us at PRIOR Business Consulting who specialize in streamlining this process and have experience in finding local small businesses the funding they require to grow!