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What are The SBA Loan Requirements

In order to get the SBA loan you will have to meet certain standard criteria which are needed to get the loan. You need to know what the SBA loan requirements are.

Though the qualifying standards are more flexible than any other loan but you need to show the lender some of the basic documents before which he can agree to give you the loan.

When you intend to start you own personal small business, you need to make a little bit survey of how the business flourishes, what is needed to make the business plan successful. The only thing which you will now need is to get the SBA loan. The lender will thereon assess your need for the loan requirement.

SBA loan can be taken for a number of purposes. You can take it for starting a business, or for expanding or improving a business. But you need to make it clear to the SBA of how the loan will be used by you. Based on the amount of loan, some of the SBA loan will also require a certain amount of jobs to be created.

The basic requirements which you need to meet are the following –

You must have been turned down by the bank for the loan to qualify for the SBA business loans.

In order to qualify yourself for getting the loan you also have to submit the guarantee both personal and business. Some of the SBA loans will even require the collateral assignment of life insurance death benefits, this is done in order to be sure that even if the borrower passes away the loan will still be repaid.

The business you are intending to start must be willing to do business in the United States, it must operate for profit.

You need to repay the loan, between five and 25 years depending on the assets being financed.

You need to re-pay the working capital requirements within five to ten years. The SBA also has some short term loan guarantee programmes with shorter repayment terms.

The SBA also takes into account the credit worthiness of the borrower. Those with no business plan or poor credit plans will not be able to get the loan. The borrower need to show a valid business plan , good credit in the business.

Other Documents-

You also need to show your business profile to the lender describing about your business, annual sales , the number of employees employed, the time period for which the business has been started and the ownership rights.
Business Financial Statements- you also have to show the complete financial statements for the past three years as well as current interim financial statements.
You should bear in mind that the strength of your financial statement will be the primary basis for the lending decision so you need to be sure of it and also keep it up to date. You will also have to indicate about the cash flow projections-how much cash you expect you may earn in order to repay the loan.

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5 Comments

  • Sima Datta said on January 25, 2011
    Dear Sir/Madam, I sima datta27 years old from Hindmotor hooghly,(P.S.Uttarpara) West Bengal I want to start export of “Panmasala and “assorted spice products” in Japan last 4 years regularly. Kindly tell me whether this comes under PMEGP scheme & what are the required process for getting loan & subsidy. Please let me know if there is also any of loan schemes available from any Nationalized bank for the same with nominal securities. Since i am entirely new to this your kind guidance shall be highly appreciated and obliged. 91-9830612663/9432245061. E-mail : dattabadal@gmail.com / simaexpo27@gmail.com
  • trupthi said on February 23, 2013
    Hi, I'm a small chocolatier since 3 yrs. I'm looking for expansion. For that I need almost 10 lacs. I don't have anything to spend from my pocket my shop is not registered yet . So no account as well no balance . Where I can get the loan with these. Conditions . My chocolate business is very hood along with that want keep some other things and want to shift in big space.hope u will help.
  • Rajen lama said on March 9, 2014
    Dear sir/madam, my self rajen lama from silcher, Assam i am 28 yr old now and belong as OBC category, presently i decided to start welding and fabrication shop in my area. but i have faced financial problem. for this can i open my proposed business with the help of PMEGP or any scheme? your help will be highly appreciated my mobile no is 918876956368 email id-rajenlama299@gmail.com
  • Md Samad Shaikh said on June 26, 2014
    Vill-Gachha Post office-Gachha dist -Nadia, Pin-741154 Phone no-9002007222. i want to automobile repair and lathe facilitates beside NH34 . my experience in the subject 6 year
  • raghavendra said on May 24, 2015
    Dear sir/madam .my self owner of shreeganeshframes .I m in dis business from last 12 year I need expansion .only problem is I don't have IT return file I need only 2 lacs for expansion .return will in six months

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