SBA Loan Requirements & Tips for Qualifying
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SBA Loan Eligibility Requirements
SBA 7(a) Loans
Not enough collateral Too new to meet lender’s standards Requested loan amount too high Real estate investment firms. Firms that are involved in speculative activities, where the majority of profits are earned based on fluctuations in price, rather than the trade of goods. Businesses that sell rare coins and stamps. Businesses involved in lending, such as banks or other financial institutions. Businesses set up in a pyramid sales plan. Businesses that are involved in illegal activities Businesses involved in gambling activities Charities, nonprofits, religious institutions, and government-owned businesses.
Small businesses Small agriculture co-ops Small aquaculture businesses Private non-profit organizations
Tips for Qualifying
#1: Starting with Existing Banking Relationships
#2: Enhancing Your Business Plan
Management plan. This section is a high level overview of the company. It should introduce lenders to your company and provide information on company management, including resumes and bios of owners or top tier management. Financial plan. This section typically includes the key financial statements for a company. The goal is to illustrate how viable a company is. Marketing plan. Consider as comprehensive a plan as possible. In addition to advertising, a marketing plan may also include things like packaging, pricing, identifying the product’s target market and creating a plan for differentiating your company from competitors. Operations plan. This section will outline strategies for developing your business. Things like company goals, procedures, and timelines are generally included in this section.
#3: Checking Your Credit Score
#4: Explaining Upcoming Changes in Cash Flow
#5: Weighing the Pros and Cons of Using Collateral
Alternative Business Loans
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