The SBA offers business owners several loan programs to meet a range of borrowing needs.
The report should also include a description of the company, a market analysis including industry outlook, the company’s legal and management structure, and a description of any products and services. This demonstrates to lenders that the business can cover its current and future debt payments, thereby reducing the risk to the lender.īusiness plans vary by industry but should generally include an executive summary of what the company does and why it will be successful. Business owners can improve their approval odds by drafting a comprehensive business plan that demonstrates how the business will make money and on what timeline. For that reason, it can be more difficult to qualify for an SBA loan as a startup than as an existing small business. Startups do not have extensive financial records like established businesses. Not have any delinquencies on debt to the U.S.Use the loan proceeds for an acceptable business purpose.Have already accessed alternative financial resources, such as personal assets.Constitute a small business by SBA standards.To be eligible for loans under the SBA 7(a) program, a business must: However, there are a few general requirements that a business must meet to qualify for an SBA startup loan. Specific eligibility requirements vary by SBA loan type and individual lender. Each SBA loan program offers different minimum and maximum loan amounts, so consider your borrowing needs before choosing the type of loan to apply for. This may include everything from renting office space to buying equipment and covering payroll for your first employees.
To do so, first consider one-time startup costs and recurring expenses. Calculate Your Startup Costsīefore applying for an SBA startup loan, evaluate the needs of your business.
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