How to get a loan from SBA(Small Business Association) Lenders

[stella7]

SBA(small Business Administration) approve and close a consistent amount of quality SBA loans. Because they're given full authority by the SBA to approve loans in 24 hours.

Preferred status comes only after the lender proves itself as a certified SBA lender. Certified lenders have only partial loan authority and must submit their loans to the SBA for final approval. This can take up to 3 days.

The bottom line is to make sure the SBA loan officers at the lending institution know what they're doing. Ask friends, business associates and lenders for SBA officers' names and the dollar amount of loan volume they've generated. And call your local SBA office for referrals; they know who the real players are.

[mamab]

While it's not uncommon for loans to be approved quickly, that doesn't necessarily mean that you should apply for one. Make sure you know what you're getting yourself into or it could come back to bite you in the end. My suggestion is to try other avenues first, and use the SBA and their associated lenders as a last resort, and then only if you're sure you'll be able to repay the loan.

[aquariancore]

You would only apply for a loan after you did your homework anyway.

[nangel78]

Research is the best way to ensure getting the better loan in the long run. Compare and contrast what financial institutions have to offer is a good method.

[aquariancore]

The research is not only for securing a loan but determining the how's and why's as well if you can lessen you need for a loan.

[mamab]

I would definitely say that if you can find ways to avoid getting any kind of loan, the better off you'll be. It might mean putting off something a while to save up the money, but it'll be worth it in the longrun.

[aquariancore]

Exactly, the less negative cash flow the better.

[SageMother]

Are there hidden obligations when you get an SBA loan? Since they are a government agency? I would hesitate to start my own business and then still be treated like a government employee. Are there requirements for drug testing and other things that defeat some of the benefits of working for yourself?

[mamab]

The biggest thing about an SBA loan is that you have to make sure you make your payments, and they are deducted every month from your checking account. You can't pay with a debit card online. I really hate that.

You DO have to have an EIN (Employer Identification Number) to be able to apply for a loan, and you have to have at least 10% equity in the business before you can apply. That means, you need to have spent at least 10% of your own money (or have it in savings) toward starting the business, before you can apply. That would be 10% of the amount you want to borrow. If you don't have that, you can forget about even applying. They won't talk to you.

My suggestion, if you're interested in the process, check with your local Chamber of Commerce. They generally work closely with people that can give you more information.

[Melizzy]

Exactly. And the SBA is a great organization. They loaned my father the money to start his business, 33 year ago, and now he's the 3rd largest manufacturer in his industry.