Before You Apply: Key Questions to Ask Yourself About SBA Loans
Embarking on the journey to secure a SBA loan is an exciting step for any entrepreneur. It's like opening a door to possibilities, but before you take that leap, it's crucial to pause and reflect. Here are some questions to ask yourself:
1. What's My Business Plan and Purpose?
Before diving into the paperwork, clarify your business plan and the purpose of seeking an SBA loan. Understand exactly how the funds will be used to benefit your business. A well-defined plan not only helps in the application process but also sets a clear direction for your business growth. Take a few minutes to sit down and define why you are requesting these funds and how they will help support the growth of your business. Remember, you are the expert in your business! The more prepared you are to speak about your business and its financing needs, the better prepared your loan agent will be to advocate for you behind the scenes.
2. How Much Funding Do I Really Need?
It's tempting to aim for the maximum loan amount, but ask yourself: How much do you genuinely need to achieve your goals? Be realistic about your financial requirements. This not only helps in a more focused loan application but also ensures you're not burdened with unnecessary debt. Your lender will ultimately appreciate a well thought out request tied to tangible goals.
3. What's My Repayment Strategy?
Consider your business's cash flow and create a repayment strategy. How do you plan to repay the loan? Having a clear plan demonstrates financial responsibility to lenders and ensures you're ready for the commitment.
4. Do I Qualify for SBA Loan Programs?
Take a moment to check if you meet the eligibility criteria for SBA loan programs. Understanding the qualifications beforehand can save time and prevent unnecessary frustration. The SBA has various loan programs, so find the one that best fits your business needs.
5. What's My Timeline?
Understand your timeline for the loan application process and communicate key dates to your deal team. This ensures everyone is on the same page, and any necessary actions can be taken promptly.
As you ponder these questions, remember that the SBA and SBA lenders are here to support small businesses like yours. Be encouraged, stay focused on your goals, and approach the application process with confidence. By asking yourself these essential questions, you're not just applying for a loan; you're paving the way for your business's success. Best of luck on your SBA loan journey!
About the author
Mary Hayes is a dedicated and thorough SBA financing professional. She provides white glove service to each and every one of her clients. She mastered in tailor financing solutions to meet each client’s unique needs. To learn more about SBA financing options, our referral program, or to join the VelocitySBA team, reach out to Mary at mhayes@velocitysba.com or 954-868-0033.