The Secrets On How To Get Small Business Lending


Once you have started your business and it starts to grow, you
will realize that you need money to keep the business on the
growth path. However, many times you have accounts receivables
and need to take a loan in order to keep cash flow liquid and
your business growing. Fortunately, a federally funded program
known by the name of SBA can help you get loans from traditional
sources.

The SBA, Small Business Administration, has guidelines and
regulations on what businesses qualify for help and those that
do not. So, if you are interested in the SBA and getting loan or
business help, then you should find out more about what SBA
loans are exactly, qualifications needed, and how to qualify
your company. First of all, the SBA does not loan federal money
to private businesses.

Instead, the SBA has several programs that assist small
businesses to receive loans from traditional sources like banks
and other lending institutions.

What the SBA does is guarantee a large percentage of the loan
for your company with the lending institution. Because of this
guarantee the bank is more likely to approve your loan. However,
the SBA will require you to have some assets to guarantee the
other percentage of the loan they do not guarantee. The reason
for this is the SBA wants your company to be actively working on
its growth and putting up assets as well.

To qualify for an SBA loan you will need to have moderately
good credit because a credit check will be conducted. The reason
for this is the SBA does not want to guarantee a company that
has bad credit and will not pay the loan back. So, as long as
you have decent credit and can almost qualify for a loan at the
bank on your own, then the SBA will be more than happy to
guarantee the majority of the loan for you. Of course, you will
have to guarantee a portion of the loan with personal assets as
well. If you have really bad credit then it is highly unlikely
the SBA will be willing to guarantee a small business loan for
your company.

If you are interested to see if your company will qualify for
SBA assistance then you should go online and do some additional
research to find out about the different kinds of assistance and
what would be most profitable for your company. Of course, there
is an application process and you will have to fill out several
forms and present various documents during the process.

The best information you will receive is if you call the SBA
and talk to a representative about your business, goals, and
needs in order to have a better idea of where you stand and what
options are available to your company.