Your Local SBA

How to Apply for a Loan
 
*THE SBA GUARANTY LOAN PROCESS*

  1. The applicant prepares a detailed Business Plan, including, but not limited to the following:
    • History and/or description of the business, as well as, a discussion of the market, competition, and any other significant factors.
    • Resume for management, including education and work experience.
    • An existing business must:
      • Furnish signed and dated historical financial information (Balance Sheet and Profit and Loss Statements) for the last three years or since the business was established, if less than three years. Federal income tax returns are acceptable, if historical financial statements are not available.
      • Furnish a signed and dated Balance Sheet and Profit and Loss Statement no more than 90 days old, with an aging of accounts receivable, payable, and schedule of note balances as of the date of the Balance Sheet.
      • Prepare and provide a statement of the amount of the loan requested and the exact purpose for which it will be used.
    • A new business owner must:
      • Furnish a statement of financial need, reflecting how the business will use its equity and the loan proceeds. SBA does not provide 100% financing. New business owners must provide some equity to help finance the proposed business.
    • Provide a personal financial statement no more than 90-days old; for each proprietor, each limited partner with 20% or more ownership interest, each general partner, or each stockholder owning 20% or more of the voting stock and each corporate officer, or any other person or entity providing a guaranty for the loan.
    • Prepare a detailed projection of earnings (Profit and Loss Statement) for the first year of business operation after the loan is closed. Explain the basis for the projections, describe your market, the price you will charge, sales you anticipate, how product or service will be distributed, and a description of your competition.
    • List the collateral to be offered as security for the loan with an estimate of the current market value of each item, as well as, the balance of any existing liens.
  2. The applicant is required to take the above material to a lender and request direct financing. If the lender is unable or unwilling to provide the financing directly, the applicant should ask the lender to consider the financing with an SBA guaranty. The lender is encouraged to contact the SBA Office - 904/443-1921, 904/443-1922, 904/443-1923 or 904/443-1924 or e-mail askus@sba.gov if additional program information is needed.
  3. If the lender determines the loan request has merit, with an SBA Guaranty, the lender should submit the loan request to the lender’s loan and/or credit committee. If approved, subject to SBA’s guaranty, the lender can NOW give the applicant the SBA Business Loan Application.
  4. The applicant should return the completed SBA Business Loan Application to the lender. The lender should complete the required credit analysis, review the loan application for completeness and submit to the SBA, with any other required supporting documents.
  5. SBA will review the application, process and approve or decline.