A Checklist to help you prepare for the SBA loan process
When small businesses do well, communities do well. We’ve seen it firsthand, and so has the U.S. government; that’s where the Small Business Administration’s lending program comes in.
The SBA program is a U.S. government initiative that began in 1953. The program helps connect Americans with funding to start, buy, or grow a business through its flagship 7(a) loan guarantee program. With an SBA loan, the SBA typically guarantees up to 75% of the amount borrowed from approved lenders, which are typically banks. In other words, the bank makes the loan, and the SBA covers a percentage of the loan (usually 75%) to protect the bank if the borrower — the business — defaults.
This means banks have more flexibility and incentive to give an SBA loan to small business owners who don’t qualify for a conventional bank loan, which can boost the local economy and create jobs in the process.
The SBA loan program can give businesses a unique opportunity to succeed, and it’s less restrictive than a conventional loan. A primary SBA requirement is that the borrower cannot obtain conventional financing, and a knowledgeable SBA lender will determine whether the borrower meets the SBA’s loan qualifications early in the process.
If you’re wondering whether an SBA loan could be a good fit for your business goals, our quick-look SBA loan checklist (outlined below) can help. If you want to learn more about what an SBA loan is, continue reading.
The Bank’s SBA Loan Eligibility Checklist
If you’re interested in securing an SBA loan, it’s helpful to consider it from the lender’s perspective. Below are a few things thorough SBA lenders keep in mind with potential clients:
Financial information or income statements and balance sheets: If you have an existing business, provide three years of historical information, current year to date, and two years of projections. For a new business, provide two to three years of projections. All projections should include assumptions.
Preparing for the SBA Loan Process
The preparation for securing an SBA loan may seem cumbersome. However, it helps you clarify your thoughts and gives the lender confidence that you have a well-planned vision of what needs to happen.
If you want to increase your chances of getting your SBA loan application approved, remember this: You need to ensure both you and your SBA lender understand what needs to happen for you to achieve success. The SBA lending process can be complex, and talking through the nuances will give you the best odds of success.
The truth is, different banks approach the SBA loan application process differently. For instance, some want to see every document filled out before they’ll talk to you, while we’re more focused on learning what you want to achieve first.
To get on the right track, talk with the SBA experts at American Bank of Missouri.
Learn More about the Small Business Administration & the SBA Loan Process
SBA Financial Classes
Senior Vice President – SBA division Manager
Ted has been in Banking since 1985 in various capacities including Commercial Credit Officer, Commercial Lender and Senior Lender. Ted has been with American Bank since March of 2017 after setting up successful SBA programs at other Banks in the St. Louis area. Ted is a graduate of the University of Missouri St. Louis with degrees in Administration of Justice and Accounting . In addition Ted has passed the CPA exam.
Al Stovall, Jr.
SBA Business Development – SBA Loan Officer
Al is a veteran sales professional with over 30 years of business experience. Prior to his 15 years in commercial real estate brokerage and finance, Al was a business owner and was active on several non-profit boards of directors. His certified development company experience gives Al a unique perspective on SBA procedure and protocol. Al focuses on providing a seamless, coordinated user experience for SBA borrowers. A graduate of Duke University, Al is an avid kayaker, RVer, writer, and cyclist.
Anthony Glenn Bill
Business Development Officer – SBA Loan Officer
Anthony graduated Central Michigan University with a degree in entrepreneurship. During his time in the CMU entrepreneurship program, Anthony had the opportunity to work on projects with local business owners. After graduating, he moved back to Indianapolis and had a successful four years as a mortgage loan officer. Anthony decided that he wanted to get back to serving small business owners and joined American Bank of Missouri’s SBA team. Anthony looks forward to providing a high level of service to the Indianapolis market in order to help his clients achieve their financing goals.