How to Create a Business Plan for an SBA Loan

One of the first things a potential lender will ask to see is your business plan. If you are looking for business financing, a business plan is imperative. It will be impossible to secure an SBA loan without one. Given its importance, a business plan should be regarded as a formal document that is honest and detailed.

Preparing for an SBA Loan

Many small businesses use an SBA loan to finance a start-up venture acquire working capital, pay for a building expansion, or purchase new machinery or equipment. Applying for an SBA Loan requires forms and documentation just like any commercial loan. The lender will have the same expectations and you should be prepared to describe your business, how you will use the loan proceeds, and establish an ability to repay the loan.

Finance Your Start-up with an SBA Loan

Finding financing for your new business can be daunting. Start-up companies don't have the financial history that lenders require during the loan process. Banks are conservative lenders and may not be willing to take a risk on a new company. The risk for the lender is lessened with a guarantor. Community Business Finance can help your start-up with SBA Guaranteed Loan Programs.

How Does the SBA Guaranteed Loan Program Work?

The SBA Guaranteed Loan Program was created to support and strengthen the small businesses that employ our nation. However, is it is important to realize the SBA does not loan money. A traditional lender, such as a bank, loans the money. The SBA then guarantees a portion of the loan, between 30%-90% depending on the loan type. This is similar to being a loan co-signer. This helps lenders be more comfortable with a loan that they might otherwise not approve, such as a loan for a start up, or a borrower that has less collateral than a bank requires.

Sharing Your Passion: An SBA 504 Loan in Action

Do you have a passion that you dream of turning into a business? Turning dreams into reality can seem impossible at times, but Community Business Finance helped Dr. Charles Quick do just that.

After setting up his own private practice, Dr. Quick realized he missed the consultative nature of the academic environment. He wanted to create a business where he could work with other professionals who shared his passion for veterinary medicine and the animals that they serve.