How do I get a small business
loan?
You should prepare a business plan, including your loan proposal,
and submit it to a local lender. If the lender is unable to
approve your loan, you may request that your application be
submitted, by the lender, to the SBA. The SBA can guarantee
up to 80% of a small business loan; however, the lender must
agree to loaning the money with the SBA guarantee. The lender
will then forward your loan application and a credit analysis
to the nearest SBA District Office. If the lender needs SBA
applications and/or guidance it may contact the nearest SBA
District Office by going to SBA. Upon SBA approval, the lending
institution closes the loan and disburses the funds.
How do I get a small business grant?
At this time, Congress has not set aside any monies for grants
to start and/or expand a small business. SBA does provide
a loan guarantee program for loans made by your local lender.
The SBA guarantees loans that the lender could not normally
approve. However, all funding is handled through your local
lender.
How do I get started in a business?
The U.S. Small Business Administration (SBA) provides a wealth
of information on starting a business at the SBA home page
sba.gov under "Small Business Planner." You will
find information on writing a business plan as well. You may
take advantage of SBA’s resource partners. The Service
Corps of Retired Executives (SCORE) and the Small Business
Development Center (SBDC) provides free one-on-one counseling
to those interested in starting and expanding a business.
This includes critiquing your business plan, legal requirements,
marketing, and licenses needed for your business.
How do I get a business license?
Licensing is generally handled through your state or local
government. You will need to consult your local telephone
directory in the "Government" section for an office
that will assist you with a license or permit.
How do I write a business plan?
If you go to SBA's home page sba.gov and select "Writing
a Business Plan" under “Small Business Planner.”
You will find information on starting a business and writing
a business plan. Under "SBA local resources" you
can find local contacts such as the Service Corps of Retired
Executives and the Small Business Development Center that
provide FREE one-on-one counseling in the area of starting
and expanding a small business. They can assist you by critiquing
your business plan and your business ideas. You can locate
a center by selecting "Local Resources" under sba.gov
as well.
What type of collateral do I need for a loan?
Repayment ability from the cash flow of the business is a
primary consideration in the SBA loan decision process but
good character, management capability, collateral, and owner's
equity contribution are also important considerations. All
owners of twenty percent (20%) or more of the business are
required to personally guarantee SBA loans.The SBA does not
deny approval for a SBA Guarantee Loan solely due to lack
of collateral; however, it can be used as a reason in addition
to other credit factors.
Is there any business assistance available in my area?
Yes. There are 12,400 Service Corps of Retired Executives
(SCORE) chapters and approximately 1,000 Small Business Development
Centers (SBDC) nationwide. SCORE provides free expert advice
based on many years of firsthand experience and shared knowledge
on virtually every aspect of business. The SBDC provides a
variety of management and technical assistance services to
small businesses and potential entrepreneurs.
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