Steps in the SBA Loan Application Process (Video)
Many small businesses need financing to get started or continue growing. The Small Business Administration offers a variety of loans to help. Here are three steps you will encounter in the SBA loan application process:
Determine if your business is eligible for an SBA loan.
You must be considered a small business by the SBA’s standards, which generally means under 500 employee or less than $7.5 million in annual sales. Other factors include:
- Be in an eligible industry, which most non-speculative and non-vice businesses are.
- Be a for-profit business located in the U.S.
- Demonstrate a need for the loan that serves a sound business purpose.
Assemble and organize your SBA loan paperwork.
This will include your SBA loan application, financial requirements, legal documents and other due diligence items. Visit SBA.gov to view a comprehensive loan application checklist.
Find an experienced SBA lender to be part of your team.
Your lender will help you navigate the loan application process and can help you with any other needs that come up along the way.
You’ll want to find a lender that is part of the SBA Preferred Lender Program. PLP lenders have a strong track record, a lot of experience with SBA loans, and the authority to process and approve loans on behalf of the SBA. Ask the lender about their SBA loan volume and who will be your point of contact throughout the application process.
Applying for an SBA loan doesn’t need to be complicated. Following these simple steps will help you stay organized and have a smooth and quick experience.
If you have any questions about applying for an SBA loan, we’re ready to help.