At FNB Small Business Finance, our Business Development Officers work closely with every borrower, guiding them through the SBA loan process to make sure everything runs smoothly. First course of action – Assembling your SBA Project Team! This is pivotal to setting yourself up for success.
While your BDO will serve as your close partner and navigator through this process, there are a few other key players to identify and engage, early, as you prepare to apply for an SBA loan.
Having a strong Legal Partner is vital to all small business owners. Your attorney will handle a myriad of fronts for you, from drafting contracts and company policies to protecting the business against litigation. Your attorney will also be a key player on the Project Team when applying for an SBA loan. They will draft the Asset or Stock Purchase documents, new entity documentation (if forming a new company), the non-compete protections, and help negotiate the lease. Your attorney will also collaborate with our bank attorney throughout the loan process, so having them involved early will help streamline the process.
Accountant or CPA
Similar to a legal partner, your Financial Advisor is a critical player in any growth plan for a small business owner. Your accountant or CPA should have their finger on the pulse of current business activities or future plans, so that they can help evaluate the financing needed to meet your goals. Once that plan is identified, they will play a central role during due diligence of a potential acquisition target or expansion plan. Your Accountant or CPA will also help pull together and prepare for submission to the SBA Lender the required financial documents, including a personal financial statement, business and personal tax returns, income statements, balance sheets, etc. Again, engaging them early and keeping them informed with your goals will help make the SBA Loan process run much smoother.
Business Insurance Agent
Business Insurance is a staple of every business, and a requirement of the SBA and FNB. The coverage needed will depend on the size and type of your business, but it is crucial to have a plan for obtaining it as you start the application process. Make sure that your business insurance agent is aware that you are applying for an SBA loan, and they can adjust coverage if we require.
Life Insurance Agent (If Applicable)
Life insurance may be sometimes overlooked in initial discussions; however, it may be required as part of the SBA Loan structure. The life insurance policy will be used as collateral and is designed to protect you, your family, and your business in the event that something should happen. The coverage needed will depend on the total loan size and term. In some cases, you can utilize an existing policy, but it maybe cleaner and easier to establish a new term policy just for the SBA Loan and business. Having your Life Insurance agent engaged early will greatly help with this determination.
Franchisor (If Applicable)
If your project includes opening a Franchised Location, read our blog to learn more about that process: https://www.fnbsmallbusiness.com/resources/blog/you-re-ready-to-open-a-franchise-location-now-what. You’ll want to notify the Franchisor that you are applying for an SBA loan to fund the new location.
Your SBA Project Team, along with your BDO will be your support system through every step of the loan process, from application through closing and funding. Together, we are all dedicated to helping you achieve your business goals through an SBA financing solution that is right for you. Ready to get started? Reach out to our SBA lending team today!