Are you looking to get your SBA loan approved? At the start of this process, looking for some advice on how to get an SBA loan approved is a good idea.
Why? Well, you just don’t want to make the mistakes others have made when applying for an SBA loan. You might already know that, and that’s why you have found this post.
Learn from my experience of getting my SBA loan approved. I will make the steps clear, which will help you also get your loan approved.
From start to finish, there are several steps in the SBA loan process. Even after receiving the initial approval, there are still a few requirements.
In my case, upon completion of the business plan, loan application, and meeting with the loan officer, I had to wait several days to hear the good news that my loan had been tentatively approved and that I had an excellent credit score.
My Experience Getting my SBA Loan Approved:
Show that the funds are being only used for expenses.
At that time, I also received a letter from the bank outlining the information necessary to finalize the loan. I needed to show that I would be using the funds only to get reimbursed for expenses relating to the start up of my small business.
Quickbooks makes this easy.
This is where having detailed and accurate QuickBooks records came in very handy because I could get any information on my expenses with the push of a button.
Show proof of insurance coverage.
I also had to show proof of insurance coverage, listing the bank as the lien holder, which was quickly handled by a short email to my insurance agent.
Show that you are a citizen of good standing.
Other pertinent data needed by the bank included being a business person and citizen in good standing, which necessitated a formal letter from the state of New Hampshire.
You can find more information about this by visiting this website.
Negotiate the terms.
After the paperwork is all done, I had to negotiate the amount of the fees I would be charged for accepting the loan.
If you want to learn more about negotiating bank loans, you should see this Harvard Business Review article.
If you have a strong balance sheet with good cash flows, you can expect that you your fees and restrictions will be lower.
Open a bank account with the bank loaning you the funds.
Last but not least, I was required to open a checking account with a new bank in order to get ready to close the loan.
I highly recommend Bar Harbor Bank and Trust for my clients in the Peterborough, NH area.
I hope this helps you get your SBA loan approved. Being aware of the steps it takes to finalize your loan will allow you to start the process with confidence and give you the time to prepare all the required documents.
How can Lee Davis and Company help you successfully apply for an SBA loan?
Lee Davis and Company is a bookkeeping and management company. We provide our clients with the support and knowhow to increase a business’s profitability and efficiency.
If you like this post and think you need an experienced manager to take care of all of your management needs, like applying for a loan, Lee Davis is the management company that can help you. We help small businesses on a part-time basis manage their businesses.
What can you expect from Lee Davis and Company?
Lee Davis is the president of Lee Davis and Company. He prides himself in helping his clients make their dreams of running a successful business a reality. He has the tools and advice that will help you, the client get to the next level.
What services can you find at Lee Davis and Company?
- Bookkeeping Services
- Small Business Advising
- Quickbooks Training
- Management Services