Understanding the Small Business Loan Process

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1. Describe the overall process of obtaining a small business loan.
When trying to obtain a small business loan you are going to want to do your research first. The best place I feel that will be willing to work with you the easiest is the place you bank with. The next step would be to fill out the loan application for the lender to review the application for credit score and history. The lenders will most likely analyze the financial ratios of your business and check to see what collateral and equity you have. All this will be to determine whether you have the ability to repay the loan. After the review is complete the lender will make one of two decisions, approve it or turn it down.
2. What levels of funding are available through the SBA? …show more content…

First type would be one of the many different types of loans available. These loans would include your basic 7(A) loans, microloan program, disaster loans, veteran loans or a special purpose loan. Another possible type of funding would be a grant. All though this type is only available for those that are in a non-profit business or an educational institution, it is still a type of funding the SBA offers. The third type of funding available would be a venture capital, which is available to those business that can’t seek capital anywhere else
3. What criteria does the SBA establish to qualify applicants for loans?
When looking towards the SBA loan you will need to meet the following criteria to qualify. Your business must have had to be turned down by any type of financial institution first. Your business also needs to meet the size requirement that the government defines as a small business.
4. What reporting is required of the

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