How to Obtain an SBA Loan
Starting or acquiring a small business comes with many benefits. This can include life-changing perks such as flexibility and financial stability in your personal life. However, whether you are starting, acquiring, or expanding a small business, it may be difficult to meet the financial obligations. For this reason, the Small Business Administration has created several loan programs designed to help small business owners succeed. These loan programs are known as SBA loans. Knowing how to obtain an SBA loan is a complex multi-step process. In this article, we discuss important steps that small businesses must take to obtain an SBA loan. For more extensive guidance, you can schedule a free consultation with Peak Business Valuation.
Peak Business Valuation is dedicated to helping small businesses succeed. This includes connecting small businesses with reputable SBA lenders. At Peak, we work with thousands of small businesses throughout the nation. We also work with over 80 SBA lenders and we are happy to connect you with one that fits your needs. In addition, Peak can provide you with a business valuation for a small business. With a business valuation, you can understand the value of your small business. This knowledge can help increase your credibility which in turn increases your chances of obtaining an SBA loan for a small business.
Steps to Obtain an SBA Loan for a Small Business
Below, we briefly explain the steps on how to obtain an SBA loan for a small business. Keep in mind that these steps may vary depending on which SBA loan program you are applying for. The following steps are only general guidelines. For thorough guidance, it is important to connect with a quality SBA lender. Peak Business Valuation, business appraiser, frequently works with small businesses that are seeking SBA financing. We are happy to help you find the direction you need to obtain an SBA loan for a small business. Schedule a free consultation with Peak Business Valuation today!
Each SBA loan program may have different eligibility requirements. However, there are general requirements that small businesses must meet before choosing an SBA loan program. According to the Small Business Administration, small businesses must:
- Be a for-profit business
- Operate in the United States or a U.S. territory
- Have invested owner equity
- Explore alternative funding options before seeking to acquire an SBA loan
For specific information on requirements for an SBA loan, schedule a free consultation with Peak Business Valuation!
Choose an SBA Loan Program
Next, you need to determine which SBA loan program you should apply for. As mentioned before, there are a variety of SBA loan programs. The most popular programs are SBA 7(a) Loans, SBA 504 Loans, and SBA Microloans. Each program has different requirements and benefits. For example, SBA 7(a) loans allow small businesses to borrow up to $5 million dollars. On the contrary, SBA microloans only allow small businesses to borrow up to $50,000 dollars. This is because these SBA loan programs are used for different purposes.
To learn more about various SBA loan programs, see SBA Loan Programs for Small Businesses. For specific guidance on how to obtain an SBA loan, reach out. Peak Business Valuation is happy to help you understand which SBA loan may best meet your needs. We can then connect you with a reputable SBA lender(s) who can further assist.
Find the Right Lender
Once you have determined the best SBA loan program to apply for, you will need to find an SBA lender. The type of lender you work with may depend on which SBA loan program you are applying for. To start, you may ask your bank what kinds of SBA loans they offer. However, it is best to receive professional guidance with Peak Business Valuation.
Peak Business Valuation has connections to dozens of reputable SBA lenders throughout the country. We are happy to refer your small business to an SBA lender that can help! In addition, we can prepare you for the SBA application process by providing a business valuation. Schedule a free consultation with Peak Business Valuation today!
Gather Info and Documentation
The next step on how to obtain an SBA loan is to gather info. After you have found a lender, it is important to gather the necessary documents to apply for an SBA loan. These documents help the lender verify your business and personal information. In addition, the info and documentation you provide will prove that you qualify for the SBA loan. Below, we list a few important documents needed for an SBA loan application:
- Business Plan
- Personal Income Tax Returns
- Personal and Business Financial Statements
- Various SBA Forms
There are several other documents required to obtain an SBA loan for a small business. To learn more about these documents, see Documents Needed for an SBA Loan.
Complete Your Application
Finally, your next step is to complete your application. SBA loan applications vary depending on your SBA loan program as well as your SBA lender. Completing your application typically involves filling out several SBA forms and writing important letters. Generally, it may take up to 90 days for SBA lenders to process and approve your SBA loan application. This is the final step in understanding how to obtain an SBA loan.
If you want to learn more about obtaining an SBA loan, schedule a free consultation with Peak Business Valuation! You may also consider checking out 4 Steps to Obtaining an SBA Loan.
SBA financing can provide the assistance you need to succeed as a small business owner. However, obtaining an SBA loan can be a complex process. As such, it is best to receive professional guidance. As a professional business appraiser, Peak Business Valuation works with thousands of small businesses across the country. In addition, we work with over 80 reputable SBA lenders.
Peak can easily connect you with a quality SBA lender that can walk you through the application process. They can also more fully answer your questions on how to obtain an SBA loan. Whether you are starting, acquiring, or expanding a small business, we are here to help you obtain SBA financing! Start today by scheduling a free consultation with Peak Business Valuation, business appraiser!
Schedule Your Free Consultation Today!