If you feel the best way for your lender to understand how your business works is to see how it operates, ask your bank representative to meet with you on site. This way, your banker has an opportunity to see you in an environment where you’re comfortable and get a real “feel” for your business and the way it’s being run. This gives them the opportunity to ask pertinent questions that may not be clear from your business plan or the other documents you submitted with your loan application.
Observe: Does the Lender have a “Can-do” Attitude?
Since you’re dealing with an experienced lender, you should be dealing with a representative who is approaching your loan application with an attitude that says, “How can we make this loan work for you?” For example, your bank representative should be familiar with SBA rules making it easier for some franchisees to get SBA loans. SBA approved franchises are entitled to expedited loan processing when a business owner applies for funding.
The SBA 7(a) program is the most popular one among small business owners. If you qualify, you may be eligible for loan guarantees of up to $5 million. You’ll need to have exhausted other sources of funding before you apply for the program.
SBA 7(a) lenders also require borrowers to specify a purpose for the money they wish to borrow. Thanks to the flexibility of this loan program, you can borrow funds to start a business, buy land, equipment or supplies and just about any legal business expense imaginable.
Read Also: SBA 7(a) Loan Checklist: Getting Ready to Apply
Where to Get an SBA Loan Near Me
The first place many small business owners start looking for an SBA loan is with the financial institution where they do their personal banking. To find out whether your local bank is an SBA Preferred Lender, call or drop into your local branch.
However, you aren’t limited to lenders you already have a previous relationship with when you are looking for an SBA loan. The best lender for your small business needs may not necessarily be the same one that helped you with your mortgage, personal investments, and college savings fund.
Go online to look for lenders that have experience lending money to small businesses similar to yours. If the lender is already familiar with the type of business you are running, you’ll spend less time explaining what your business does and more time focused on the specifics of your loan and why you would be a low risk client.
Don’t hesitate to talk to a lender that you haven’t done business with (yet). If the bank or trust company is an SBA Preferred Lender, it already has a lot of experience dealing with small business owners. Contact the lender and make an appointment to discuss your business financing needs in some detail.
If you have questions about the SBA 7(a) loan program or you would like to get a free quote, just click on the button below.