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    13 Replies Latest reply on Jun 5, 2008 1:09 PM by Bridge

    What are SBA LOAN Requirement for small business loan only?

    score81 Adventurer
      Client needs Help: I want to buy a solon business only. I am a female minority and like to know what type of help is available in shape of loan. SBA loan. What are the requirements of SBA loan and how I can be qualified for that loan. Where do I find list of lenders and 1) what questions to ask when we first call up, 2) what else from there on is needed to get the loan?
        • Re: What are SBA LOAN Requirement for small business loan only?
          SCORE108 Wayfarer
          I would refer you to the SBA website http://www.sba.gov/wi/wi_wiapply.html for a list of FAQ that will answer most questions about SBA guaranteed loans. The loans are made by a bank with the SBA guaranteeing 80% of the loan. Any bank can help with preparation of the application forms. If your client finds one that is not interested in helping then go to another bank.
          1 of 1 people found this helpful
          • Re: What are SBA LOAN Requirement for small business loan only?
            Marzipan Wayfarer
            Score81 - I would do some research on any available minority based loans or grants that could be available from different non-profits or even their own city. Lots of great programs out there to encourage more minorities and women to own their own business. Best of luck to your client.
            • Re: What are SBA LOAN Requirement for small business loan only?
              WEBillions Adventurer
              Your business will need to be stable and profitable to qualify for an SBA loan. You'll also have to put up basically everything you own as collateral. If that doesn't pan out for you, you can also consider an asset-based lender. The interest rate will be a little higher because they are more likely to loan to what they consider higher risk customers.
              • Re: What are SBA LOAN Requirement for small business loan only?
                LUCKIEST Guide
                SCORE works with the SBA to help you get a loan for a small business.
                You can visit a SCORE office and talk to a SCORE counselor, or visit SCORE on line.
                They will be happy to help you find lenders and help you with a BUSINESS PLAN.
                Good luck, LUCKIEST
                • Re: What are SBA LOAN Requirement for small business loan only?
                  Marks Funding Newbie
                  I would recommend that in order to streamline your efforts you work with a broker such as ourselves. There are others as well. Many lenders deal only through brokers and use the brokers as a first line screen to check credits, guarantors, business background i.e. you want to have a business but do you have access to the experience to run it so that the lender feels secure. I would be more than happy to go through this with you in detail over the phone as I have access to quite a bit of onformation including applications that I can review with you. You can also search the web for other brokers as well.

                  Best of luck to you
                  • Re: What are SBA LOAN Requirement for small business loan only?
                    E5C4P3 Newbie
                    I would avoid the SBA if you can, typically SBA are for businesses that lack credit or the funds to get a traditional loan on thier own, or even start ups. In most cases you typically pay MORE intrest and FEEs to get the sba loan. THis is NOT free money out there, as many people, believe it or not, think..

                     

                     


                      • Re: What are SBA LOAN Requirement for small business loan only?
                        E5C4P3 Newbie
                        You should consider using equity in your home if you can..

                        home equity loans are among the lowest rates out there, and easier to get.
                        Im not slamming here, but you should avoid a broker, commisions and higher rates only make you BROKER!

                        try your local bank.
                          • Re: What are SBA LOAN Requirement for small business loan only?
                            Bridge Navigator
                            First, let me say that I am not a loan broker or associated with any loan broker. I am a business broker and refer clients to loan broker versus directly to banks all the time.

                            A reputable loan broker does not charge "higher rates" they actually help you get lower rates and most charge a nominal and in some cases refundable fee if the loan is not approved. A broker can bring you pacjage to multiple lenders - competition drives rates lower.

                            They are professional at what they do and can usually help "clean up" the presentation dramatically before it goes to a lender (bank or otherwise). You only get the chance to make a first impression once, and if you shoe your company wrong, no deal, no second chance.

                            Loan brokers do this for a living and are up to speed on which lenders prefer what types on loans, who has a full portfolio, and who has money to lend.

                            Check the fine print in your home equity loan - normally it is illegal to use it for business purposes. This is not to say people don;t but it give the bank an excuse to call the loan if they need to. In today's environment, more home/equity loans are being scrutinized.
                          • Re: What are SBA LOAN Requirement for small business loan only?
                            Marks Funding Newbie
                            While some of what you say may be true I disagree with most of it. WE finance people a lot of ways - collateral on equipment, real esstate, guarantors, future confirmed orders, exisitng invoices, future credit cards sales and more. SBA loans are excellent sources of funds for startups or those without a lot of traditional collateral on hand. I would advise against a home equity loan (as you suggested in your next response) as a sole source of funds b/c if your business does not succeed you could lose your home. I would only use this collateral source on something where the risk of failure is very minimal or as a back up to other collateral. Banks are geared towards those that really do not need money- class "A" borrowers if you will. Small business people generally are not in that category which is why there are so moany other lenders out there making funds available.