Finance & Accounting Blog


Posts about Finance & Accounting topics to help you succeed
Finance and Accounting Help

Small Business Administration Loans

Mar 28, 2009

If you need funds to purchase or expand a business and have not had any luck getting a loan approved by your local bank, applying for a Small Business Administration (SBA) loan guarantee may help.

The SBA helps small businesses grow by providing a guaranty for a portion of the loan that a lender makes to your small business. This means that if you default on repaying the loan, the lender does not absorb the entire loss.

There is a lot of paperwork involved in applying for any loan. This is true with SBA/bank financing. The SBA has a list of required documents that is summarized below.

  • Application for loan
  • Statement of personal history
  • Personal financial statements
  • Current detailed and signed Balance Sheet and Profit & Loss Statement along
    with three years of supplementary schedules
  • Detailed one year projection of Income & Finances with an explanation of how you expect to achieve the projected results
  • List of subsidiaries and affiliates including any concerns that the applicant holds a controlling interest in and other concerns that may be affiliated
  • Certificate of Doing Business (stamped by corporate seal if incorporated)
  • Agreement to comply with SBA non-discrimination regulations
  • Signed business federal income tax returns for previous 3 years
  • Signed personal federal income tax returns for previous 3 years
  • Personal resume including business experience of each business principal
  • Brief history of the business and its problems including how the SBA loan will
    help the business
  • Copy of the business lease or note from landlord giving terms of proposed lease
  • For purchase of an existing business: Current balance sheet and profit and loss statement, previous 2 years federal income tax returns of the business,
    proposed bill of sale including terms of sale, asking price with schedule of inventory, machinery & equipment, and furniture & fixtures

As you can see, this is quite a lot of information to accumulate, although much of this has probably been submitted in previous attempts to obtain bank financing.

Most banks have loan officers who are familiar with this process and can offer guidance. The SBA website at www.sba.gov offers information and forms to be completed. This website also refers you to counselors who can assist you with this process if you find the process difficult to understand.

Remember that the SBA’s mission is to help small businesses be successful. The effort involved will be well worth it when your business is a thriving success.

NASE Social Media

res-footer-facebook res-footer-twitter res-footer-linkedin

res-footer-blog res-footer-huffpost res-footer-youtube

Related News...

Investing in Your Small Business
Running a successful small business isn’t just about the day-to-day actions of keeping your operations afloat. You need to have a firm focus on the future. As such, making the right investments into your small business is an essential element in ensuring your future is well guided and supported.
Posted on Oct 08, 2021
When to Splurge and When to Save: a Guide to Helping Self-Employed Individuals Budget for Their Organization
Congratulations on starting your own small business. You’re finally self-employed. Being your own boss comes with a lot of perks. You can take long lunches and create your own schedule, but it’s also a big step with a definite learning curve. Much of that learning relates to money. You’re not getting a regular paycheck anymore. How are you going to pay the bills every month and still save for retirement?
Posted on Oct 21, 2020
Business Funding Options in the Age of COVID-19
Although financing in the post COVID world will be more challenging for many small businesses, there are financing options available, you just need to look in the right places. As we’ve witnessed in past recessionary times, the sad truth is that there will be fewer options available as many lenders tighten up their creditworthiness criteria and others step away from lending to small businesses entirely—at least for the short term.
Posted on Oct 10, 2020
Want to see more news items? Click here  

Related Videos...

Tax Reform and how the NASE is demanding simplification and fairness for small business owners.
Tax Reform and how the NASE is focused on simplification and fairness. Contact your congressman and voice your opinion today.
Posted on Mar 21, 2018 by Keith R. Hall
Open a Separate Bank Account for Your Business
Watch Keith explain why opening a separate bank account is extremely important.
Posted on Jan 10, 2018
Want to see more related videos?  Click here  

Still Have Questions?

Ask The Expert

Courtesy of NASE.org
https://www.nase.org/business-help/get-help/finance-accounting/finance-accounting-blog/finance-accounting/2009/03/28/Small_Business_Administration_Loans