It is very important to understand during this tight credit environment what loan underwriters need to see when evaluating your SBA loan application in order to get it approved quickly. Not every SBA lender is the same and each has a particular interest in funding specific SBA loan requests. Be sure to understand and follow the action step below in order to get your loan approved in the shortest amount of time.
Action Step #1
Create a Project Overview:
The lenders want to know who you are and what experience you have. Explain why your educational background and training makes you qualified for this related line of work. Make it known to the lender any success stories, achievement awards, and testimonials you have from operating this business. It is vital that you share as much positive experience about your business to make the loan underwriting process move along quickly.
The lender wants to know what type of business you are engaging in. They want to know whether the business industry you run is old and established or new and unproven. If this business is in a new industry, they want to know what are the future growth prospects for this industry. When applying for an SBA loan, you must think like a loan underwriter. It does not matter what use you have for the borrowed funds if lenders are not willing to lend money in a specific industry. As a result of this credit crunch, this is a lenders market and not a buyers market.
Lenders want to know what purpose this financing will solve, how the funds will be allocated, and the exact loan amount needed. You must present project costs, for example, such as real estate purchase $450,000, rehabbing $200,000, equipment purchase $100,000, refinance business debt $275,00, and marketing and soft costs $50,000. The lender wants to know how much cash will you put into the deal and the source of those funds.
You must clearly convey to the lender your passion and expertise for this project and include this in the project overview. Take control of your loan request by following these guidlines and you will be a step ahead of your broker or lender when you correctly prepare your SBA loan application. Perform your own market research both locally and globally. Search for comparable industry success stories you may use to your advantage. Turn the application process from ordinary run-of-the-mill to exciting by injecting your enthusiasm into the mix. Get people excited to work with you and remember to always think like the underwriter. You will be on your way to a quick SBA loan approval when you take action on your project overview.
SBA Loans – How to Quickly Turn Your Request into an Approved Loan –
