The Small Business Administration does not make direct loans. It does, however, provide loan guarantees to banks who lend to small-business owners.
The process is straightforward, although not without a serious amount of research on your part.
You should take your Business Plan to a commercial bank for initial review. (Hint: Start with the bank you already have a relationship with through your business account.) If the loan officer/lender approves the loan subject to an SBA guaranty, the application and the bank’s credit analysis are forwarded by the lender to the SBA office. If the SBA approves, the lending institution closes the loan and disburses the funds. You make your monthly loan payment directly to the lender.
The Business Plan is your opportunity to demonstrate the uniqueness and viability of your business. Your plan should include: (more…)