2025-10-24
How to Get an SBA Loan
Introduction
While SBA loans provide attractive financing, the process to secure one can feel intimidating. Fortunately, with proper preparation and the right guidance, getting an SBA loan is achievable for many small businesses.
Step 1: Determine Eligibility
- Business must operate for profit.
- Must meet SBA size standards (varies by industry).
- Must be owned by U.S. Citizens or LPRs and operate in the U.S.
- Owners must have invested equity.
Step 2: Choose the Right SBA Loan Program
SBA 7(a) loans can be used for a wide variety of business purposes, including buying or building commercial real estate, starting or acquiring a business, and refinancing existing debt. They can also fund working capital, equipment, inventory, and supplies, and cover costs for expansion and renovations.
Step 3: Find an SBA-Approved Lender
Not every bank or lender specializes in SBA loans. Look for a Preferred Lender Program (PLP) partner who can streamline approvals.
Step 4: Prepare Documentation
- Business plan
- Personal and business tax returns
- Financial statements
- Resumes for business owners
- Debt schedule and cash flow projections
Step 5: Submit Your Application
Work closely with your lender to complete SBA-required forms and provide additional documentation.
Step 6: Review and Approval
The lender and SBA will evaluate your application, considering creditworthiness, business viability, and repayment ability.
Step 7: Closing and Funding
Once approved, you’ll complete the required documentation, sign final paperwork and receive loan proceeds.
Tips for Success
- Keep your credit score strong.
- Be transparent about your financials.
- Show clear repayment ability.
- Highlight how funds will help your business grow.
Conclusion
Getting an SBA loan requires planning and organization, but with the right approach, you can secure affordable financing to grow your business.
FAQs
