SBA Loan: Qualifying and Applying

According to federal government research, small businesses provide about 75% of the net new jobs added to America's economy. They also employ fully one?half of America's private sector workforce. In addition, 99.7% of all employers in the U.S. are small business owners. These statistics make a strong case for the existence of a federal organization dedicated to the promotion and proliferation of small businesses in this country.

In 1953 the United States government established the Small Business Administration (SBA) as a way of assisting entrepreneurs in forming successful small businesses through government guaranteed loans. While the SBA itself doesn't make many small-business loans, its primary function is to guarantee the small-business loans made by private lenders.

Most SBA loans are secured through any one of the SBA's many licensed partners nationwide. Besides establishing lending guidelines for their partners, the SBA also ensures reasonable loan terms by guaranteeing major portions of the loan in the event of a borrower default. Because of the decreased liability provided by the SBA, the lender is able to offer better interest rates and options to businesses in the early stages of development.

Before we get too excited about the potential benefits of an SBA loan, it may be a good idea to first talk about who can potentially qualify. The size of your company obviously plays a large role in securing an SBA loan; after all, this is about 'small business'.

If you run a manufacturing company, its possible to have up to 1,500 employees working for you and still qualify for an SBA loan. On the other hand, depending on the type of manufacturing you do, it may be more likely that you'll be limited to 500 employees in order to qualify for loan consideration.

For some industries, the SBA lender may look at your company's average revenue. For example, if you run a wholesale or retail business, your average annual sales for the past three years cannot exceed $6 million to $29 million, depending on the type of business you own. Construction companies need to fall into the $12 million to $28.5 million range. Basically, if you make too much, you're considered too 'big' to need an SBA loan. It's also very important that you're running an independently owned for-profit organization if you are considering SBA loans.

If you still qualify keep reading.

When beginning the SBA loan application process, your lender will require you to have some specific information ready. The first document you'll need is your business profile; this simply describes the type of business you run, your annual sales revenue, the number of people you currently employ, and how long you've been in business. You will also need to provide a loan request. This is a description of how money you need and how you plan to spend it. As with any loan, you will need to provide collateral. Be prepared to explain how you plan to secure the loan.

The most important information you will need to provide is the business's financial statements for the past three years. These include: balance statement, income statement, and the statement of cash flows. As the owner of the business, you will need to provide not only your personal financial statements, but also the financial statements of any other individuals that hold 20% or more equity in the company. Most lenders will also ask for personal tax returns for the last three years.

In the next portion of this article, 'SBA Loan: Options, Benefits, and Lenders', we will further examine what kinds of loan options are available, and for what kinds of businesses they are most advantageous. Lastly, we will discuss different types of SBA lenders.

Cameron Brown is an internet marketer specializing in ranking automation. For information on how an SBA Loan can benefit you, visit Security National Capital

---

Getting Good Value Personal Loans

Over recent years, personal loans have become a popular solution... Read More

Holiday Personal Loans ? When the Traveller Within You Wants to Break Free

If you are a traveller by heart then perhaps every... Read More

A Guide to Finding an Adverse Credit Homeowner Loan

If you're searching for an adverse credit homeowner loan, you... Read More

No Hotel Loan for You!

Meeting the requirements to get a decent hotel loan from... Read More

If You Consider To Get a Quick Cash Loan Then Reconsider It

A quick cash loan also called payday loan, cash advance... Read More

A Guide to Debt Consolidation Loans

Should you find yourself overcome by debt, you might want... Read More

See What Your Home is Worth

If you thought your home is worth nothing except for... Read More

Guide to Bad Credit Loans

Here is a useful guide to Bad Credit loans. Bad... Read More

Car Loans for People With Bad Credit

Car loans for people with bad credit are readily available... Read More

What is a Title Loan?

A title loan is a loan of money secured by... Read More

Loans Guide

Many people are confused by the different types of loans... Read More

Getting the Best Loans UK with Bad Credit

Sometimes it might seem as though finding good loans UK... Read More

Your Home Can Act As Carriage For Car Loans; Do You Know The Term For That? Secured Car Loans

Since the invention of the first self propelled car by... Read More

Used Car Loans - 3 Tips For Financing Your Used Vehicle Online

Financing the purchase of a used vehicle can be done... Read More

5 Things Pensioners Applying for a Loan Should Remember

Are you a pensioner applying for a loan? Here are... Read More

A Beginners Look at Secured Homeowner Loans

Secured homeowner loans come in a variety of different types... Read More

Guide to Home Improvement Loans

Here is a useful guide to Home Improvement Loans. What... Read More

Car Loans After Bankruptcy - Tips to Getting Approved

A car loans after a bankruptcy is one way to... Read More

No Credit? ? You Will Need a Bad Credit Loan

So you have never taken out a loan? You don't... Read More

Online Car Loans - Getting a Good Quote Online

Online car loans enable you to get a good quote... Read More

Understanding Secured Loans

A secured loan is any loan that is secured on... Read More

Why Student Loans are Better Than Credit Cards

You need some more money for college expenses this semester.... Read More

SBA Loan: Options, Benefits, and Lenders Part 2 of 2

In this second installment, we will further examine what kinds... Read More

Federal Housing Administration (FHA)

FHA loan programs:FHA AccessFHA Cal GoldFHA Rural GoldFHA Mutal Mtg.... Read More

Can A Pay Day Loan Truly Be Easy?

If you're looking to find an easy payday loan it's... Read More

Refinance Car Loans - Refinancing Your Car Loan Online is Convenient

Refinancing your car loan online is now more convenient. Your... Read More

Steps You Can Take To Protect Your Financial Information and Personal Identity From Fraud

Financial fraud and identity fraud are one of the fasted... Read More

A Renter in Debt? Take Out a Bad Credit Personal Loan

On average, homeowner households earn 95% more than renting households... Read More

A Beginners Guide to Low Interest Debt Consolidation Loans

Looking for low interest debt consolidation loans can sometimes seem... Read More

A Method Used For Evaluating Online Lenders

Online lenders might be high quality, serious companies such as... Read More

What is a Commercial Business Loan?

A commercial business loan is designed for a wide range... Read More

Secured Loans House the Most Positivistic Consequences of Loan Borrowing

One of the most enduring myths of loan industry is... Read More

Beware of some Get Cash Now Vendors

Some weeks it feels like you're living hand to mouth.... Read More