Get ready
Before you start talking to lenders, have a look at the abbreviated checklist below to see if you’re ready to apply for an SBA loan.
- Business plan: Most lenders expect a business plan when you apply for startup funding. If you need to create one, follow our free business plan guide.
- Amount and use of funds: Know how much capital you need and how it will help your business. You can’t use an SBA-approved loan to flip a house.
- Credit history: Lenders use credit scores to determine credit risk and interest rates. SBA helps guarantee some loans that otherwise may not qualify.
- Financial projections: Show you understand your business’ finances, how the funds will be used, and how you’ll pay back the loan.
- Collateral: Many lenders require you to use another asset to guarantee your loan. This can be a home, car, inventory, or other property you own.
- Industry experience: Industry experience isn’t required, but it’s helpful. Firsthand knowledge about your industry can make your lender feel confident about making a loan.
