How Do I Obtain a Small Business Loan?

There are several steps that you must take if you are seeking to reap the benefits of having a small business loan. 

• Go to the Small Business Administration’s website and review as much as possible. Take a few of the free courses for small business owners that they offer. Review everything under the SBA Guaranteed Loan Programs. 
• Call the Small Business Administration to speak with a representative who can give you sound advice. Read all of the information available on the loans for small businesses offered. 
• Apply for a small business loan. Complete all of the necessary paperwork, and if need be, give them extra documentation on what you need the loan for. In your loan application package include a business plan, an executive summary (this is usually a part of the business plan), and a statement of purpose. 
• The more information that you have readily available, and can substantiate the needs of your business, the better.

Steps to Obtain a Loan

You can follow these steps to obtain the small business loan that is right for you:

1. Go to the SBA website – The Small Business Administration (SBA) has a website chock full of references and resources for fledgling small business owners. You can get directly to the loan section by clicking here, leading directly to financial assistance information.
2. Since you are avidly looking for information on a small business loan, you might consider reviewing the Guide to SBA’s Loan Guaranty Programs. It is a good starting point for foraging through the often tedious loan application process. If you go to the last paragraph of the landing page, under the heading “For Borrowers,” you will find that the “Guide to SBA’s Loan Guaranty Programs is highlighted as a hyperlink. Click on that hyperlink and fill in all of the pertinent information that it requests. Once you finish filling out the registration form you will be taken to a self guided finance primer training course. This training course will give you a bit of background on the SBA’s loan programs.
3. In the paragraph just above the last paragraph under the heading “For Borrowers” ( the same initial page that was discussed in step two), click on the hyperlink that says “The Application Process.” Here you will find information on what is required of you when you are applying for an SBA small business loan. There are three hyperlinks for you to review, they are: “Credit Factors,” “How to Apply,” and “When You’re Ready.” Review the information housed in each of those hyperlinks. This knowledge is invaluable to you getting a small business loan from the SBA.
4. Complete the Loan Package – Listed under the “When You’re Ready” hyperlink is a set of forms that you will be required to complete and submit. Fill out these forms as per the directions on the website. Additionally, be prepared to submit balance sheets, income statements and other financial information for your business from the past three years.
5. You may be required to submit additional supportive documentation. This documentation includes but is not limited to: resumes, statement of purpose, articles of incorporation, and a host of other documents. Review the information under “When You’re Ready” on the SBA website for more information.
6. You will need to write an executive summary and perhaps even have a business plan handy.