Whether you are starting a manufacturing company or opening up a coffee shop, SBA loans are the way to finance your small business. Small business loans are loans that are guaranteed by the Small Business Administration, which was started to assist entrepreneurs in forming successful small businesses. According to federal government research, small businesses employ fully one-half of America’s private sector workforce and over 99 percent of all employers in the U.S. are small business owners.

There are several benefits to SBA loans, including the many licensed lending partners nationwide. The SBA establishes guidelines, reasonable loan terms, and is able to offer better interest rates and options to businesses in the early stages of development.

There are some difficulties in obtaining a small business loan, however, beginning with the requirements for potential borrowers. Lenders will consider the size of your business, including number of employees, and your company’s average revenue in certain industries, such as construction or wholesale.

When you call your lender to be considered for a loan, plan on answering a lot of questions about your business. Some information they might ask you for is a business profile (type of business, sales revenue, number of people you employ, and how long you have been in business), a description of the money you need and how you plan to spend it. Also be prepared to provide collateral and explain how you plan to secure the loan.

There are several different types of SBA loan options available, including:

•Basic 7(a) Loan Guaranty

•Certified Development Company (CDC), a 504 Loan Program

•Microloan, a 7(m) Loan Program

More information about these types of loans can found through your private lender, or the Small Business Administration.

To learn more about the SBA Loans offered and to see if you qualify for one, visit Security National Capital today.

To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. To vastly increase your chances of a successful funding application, you will need to present the following information:

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.

2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).

3. Details of how you will repay the amount borrowed. For example:- From the increase in profits of reduced running costs of the Whizzbang Go4It

4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.

6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Accounts receivables (debtors) and payables (creditors) ageing reports.

9. Principals financial statements - Particularly required if some form of security is necessary.

If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they’ll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)

Good luck!