How to Apply for an SBA Loan

Posted by: Rod Kurtz on July 16, 2007

In order to be eligible for an Small Business Administration Loan, you must have applied and been turned down for a conventional loan by a commercial lender. By law, the SBA may not guarantee a loan if a business can obtain funds on reasonable terms from a bank or other private source. A borrower therefore must first seek private financing.

After being turned down for conventional or private financing, you may then go forward and apply for financing for your business under one of the SBA loan programs. The next step is to determine which type of SBA Loan Program is best for your business.

To read the full story on AllBusiness.com, click here.

Reader Comments

Rob

August 12, 2007 9:11 AM

What SBA loan program would be for me.

I have recently decided that I need to change my home-based business, because I have outgrown my space. Right now, I need to locate a physical location for my business, and I need the proper equipment to conduct my ‘professional’ classes.

In addition, I need to expand my business, and I have no cash to pursue my venture. What I am looking for is a small business start up loan, preferably an unsecured business loan. I’ve been having problems getting a loan because I don’t have enough collateral.

Can you offer me some guidance, advice, or even a reliable resource that will cater to a person in my situation?

Ralph

August 12, 2007 9:15 AM

Hi,

I am a frustrated established business owner trying to keep pace with a competitive market. I am currently sustaining my business on my personal credit cards and have been doing so for quite some time. Now I have successfully maxed out each one of them out.

Because all my credit cards are maxed out, I am trying to get a loan in an effort to pay them off. I am confident that paying off these balances will take the noose of the neck of my business.

However, I find that most banks view me as a considerable risk because of my maxed out credit cards, and each attempt I make to acquire a loan is denied.

I am not quite ready to give up on my business. It is all I have.

So, I am hoping someone can tell me where I can go to get an approved loan that will give me the cash I need to pay of my credit card balances, without all the hassles.

Having seen mention in your post of the SBA loan program that are offered, I am wondering what would be suitable for me?

Matthew

August 12, 2007 9:19 AM

My name is Matthew.

I have great credit. I have paid off previous bills, and I pay my current bills on time. But because of the current level of activity in my business, I want to expand my services, which requires additional equipment and financial resources outside of what my business is capable of.

Because I placed so much faith in my ‘great’ credit, I approached several banks and applied for a loan with a business line of credit. I was informed, as a matter of fact, that because I am writing off all my expenses to my bottom line, I did not qualify for the loan. The banks I approach are basically telling me that my business is not making enough money.

Does your SBA loan program accommodate this type of venture? Are there any existing resource that caters to business owners in my position? I am desperately trying to keep up with the pace of a competitive industry.

Edward Endrich

September 1, 2007 12:46 PM

Dear Sirs,

I was run off the road on my way to work the morning of 12/30/03.I worked as a autobody tech and made a fair living. However on this morning somebody came at me and I veered off the road and hit a tree. I sustained 7 broken ribs, a broken left clavicle, a broken left hip and pelvis, a level 3 lacerated spleen, 2 collapsed lungs, and 3 brain injuries. Needless to say, this accident has left me unable to return to work.I'm an inovative thinker and I came up with some unique ideas. One I know is a home run but I can't afford to patent and do any manufacturing on any of the items that I designed. I have working prototypes of several items I've designed and am scared to show them to anyone for fear that they may steal my ideas. I've showed them to family members and they think, like me, that it's a home run. However they are not in the financial situation to help me out either. I would gladly show you my ideas if you could guarantee me confideniality via a non-disclosure form or whatever you see as neccessary. I would even cut you in to a deal as an incentive. Believe me, I know this idea is a hit. I wish I could do this another way, but I can't. I've even tried the American Inventor show and I'm waiting for a reply but in the meantime my home is in a stage that it will be foreclosed on shortly. I need to do something now. I'm not the type of person to ask for favors, but I need outside help due to the fact I'm disabled. Thank you for your time and sorry this is a lengthy e-mail.
Respectfully,
Edward Endrich

Rebecca Rhodes

September 5, 2007 6:03 PM

My sister lives in Tenn. and I live in MO. (will be relocating to be in partnership with her) She and I have the ability to buy a Spa that is currently for sale for $550,000. Problem: We are wanting to apply for an SBA loan as an LLC but we don't know how. Any help would be exstremely helpful. Poor credit.
Thank You,
2 sisters

Kena

January 9, 2008 12:46 PM

I understand your concerns. Our company works with business owners in your situation all the time. We help business owners finance thier businesses. Please email me at kenaallen@westgatebusinessfinance.com for more information.

Gibson Hart

January 26, 2008 8:13 AM

I AM A LOAN LENDER,I OFFER LOANS AT A LOW INTEREST RATE TO ALL.IN MY SECURED AND UNSECURED LONG AND SHORT TERM LOAN OFFERS IF INTERESTED DO CONTACT ME VIA EMAIL ADDRESS.gibson_ultrafinance@yahoo.com

joe condinho

June 21, 2008 10:07 PM

I HAVE A BUSINESS PROJECT TO GET OFF THE GROUND IT WOULD TAKE ABOUT $2000 TO GET GOING CAN YOU GIVE SOME DIRECTION ON THIS STARTUP THX JOE CONDINHO

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