Understanding The Banks

How To Seek Financing

Even if you lack sufficient equity or experience yet your idea and approach are sound, you can get SBA loan guarantee. All you have to do is, select a suitable bank having a sufficient experience with SBA programs.

SBA has divided banks into 3 major categories:

1) Regular banks: helps in preparing SBA loan applications.

2) Certified lenders: conducts financial analysis necessary to expedite SBA loans.

3) Preferred lenders: having sufficient experience to commit SBA loans.

To raise loan guarantees company has to submit complete business plan along with the objectives as well as complete balance sheet of at least for the current period.

New business applicants should prepare an estimated (pro forma) balance sheet, including personal start-up funds, as of the day the business was, or is to be, started.

After collecting all the documents, it prepares a personal financial statement for each owner. It also makes the list of collateral being offered as a security for loan. SBA usually takes four months for approval.