Getting an SBA Loan

President Obama in his State of The Union address recently announced a proposal to give $30 billion to community banks for the purpose of using the funds for small business loans. The funds are assumed to be regulated through the Small Business Administration (SBA) but no details have yet been announced. The SBA has long championed the small business community and has offered many loan types to accommodate just about any small business. But how do you go about getting an SBA loan? Here are several tips from to help you get funding:

  • Learn about the different loan types and which ones you would qualify for.
  • Learn about what paperwork you will need for your loan type and any special requirements that that loan may need.
  • Become familiar with the SBA and how it operates. This is a government agency and you will need to be prepared to deal with the bureaucracy.
  • You will need a business plan. In most cases for small business loans this is not a complicated document to put together. You should consult your loan officer about some of the requirements of the business plan to insure that it is done properly and according to the SBA guidelines.
  • Become familiar with the community banks that will be participating in this program. Each bank is different and independent of the SBA. Even if the SBA gives you a go ahead with the loan, it is ultimately the banks final decision. In addition to the $30 billion that will go to community banks, the president is also proposing a $33 billion tax credit for small businesses that hire new employees or increase wages.