How Your Loan Request Will Be Reviewed

When reviewing a loan request, the lender is primarily concerned about repayment. To help determine its likelihood, many loan officers will order a copy of your business credit report from a credit reporting agency. Therefore, you should work with these agencies to make sure they present an accurate picture of your business. Using the credit report and the information you have provided, the lending officer will consider the following issues: Have you invested savings or personal equity in your business totaling at least 25 percent to 50 percent of the loan you are requesting? Remember, no lender or investor will finance 100 percent of your business.

• Do you have a sound record of credit-worthiness as indicated by your credit report, work history, and letters of recommendation? This is very important.
• Do you have sufficient experience and training to operate a successful business?
• Have you prepared a loan proposal and business plan that demonstrate your understanding of and commitment to the success of the business?
• Does the business have sufficient cash flow to make the monthly payments ?
• SBA Financial Programs

The SBA offers a variety of financing options for small businesses. Whether you are looking for a long-term loan for machinery and equipment, a general working capital loan, a revolving line of credit, or a micro loan, the SBA has a financing program to fit your needs.

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