SBA Loan Requirements & Tips for Qualifying

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SBA Loan Eligibility Requirements
SBA 7(a) Loans
For-profit status
Location
Size
Business owner investment
Limited financing opportunities
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.
SBA Microloans
SBA Disaster Loans
Small businesses Small agriculture co-ops Small aquaculture businesses Private non-profit organizations
SBA 504 Loans
5 Tips for Qualifying for a SBA Loan
1: Start With Existing Banking Relationships
2: Enhance Your Business Plan
Management plan
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: Check Your Credit Score
4: Explain Upcoming Changes in Cash Flow
5: Weighing the Pros and Cons of Using Collateral
Alternative Business Loans
The Takeaway
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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