Qualifying for a Small Business Loan Program

If you are the owner of a small business or have considered creating a startup company, you will find that financing such an endeavor can be difficult. For many individuals, however, there is help in place. The Small Business Administration, or SBA, has a loan program specifically to help people get their new businesses off the ground. The question is whether or not your business qualifies.

In order to qualify for the loan program offered by the SBA, you have to prove that your idea is profitable and that you have a sound business strategy. To qualify for the loan program, your business must meet state standards, must not have more than 100 employees, and must not make more than $5 million in 3 years. However, these standards change slightly for agricultural and manufacturing businesses.

Other qualifications for an SBA loan program dictate that the loan must be used to purchase new buildings, to finance new construction, to refinance business debt, or to provide working capital. The loan program typically has a maturation period of seven to twenty five years, depending on the nature of the loan itself.

If you are interested in an SBA loan program for your small business, you are encouraged to do further research. For example, to appropriately meet the criteria for the loan program, you should create a detailed business plan and proposal that explains how you intend to allocate revenue. You should also include how you intend to recover the funds, repay the loan, and make a profit. An SBA loan program can be a great way to get your business off the ground, and can help you get a great start in the business world.