5 Tips to Secure an SBA Loan

Last Updated on March 12, 2018

Nearly every business will need to apply for a loan at some point. Whether you need to cover the costs of a vital project, hire new employees, or simply increase your cash flow in the short term, loans can help business owners handle day-to-day operating expenses.
One of the best options available to small business owners is the SBA loan. That’s because SBA loans are some of the most advantageous loans out there. They offer low interest rates, long terms, and provide businesses flexibility and spending power they’d otherwise lack.
However, SBA loans can also prove somewhat difficult to attain. Still, that shouldn’t put you off from applying for one. Especially if you follow these five simple tips to securing an SBA loan for yourself:

5 steps to securing an sba loan

Take Time into Account

One big reason why companies fail in their attempts to land an SBA loan is that they don’t properly form a timeline for it.
SBA loans aren’t like other loans, and it can take businesses weeks if not months to gain access to funding if they’re approved. Instead, SBA loans are best suited for long-term plans. Don’t walk into a bank or lender’s office and expect to get an SBA loan to cover expenses for a project that you’re finishing next week.

Research Your Lender

Contrary to popular belief, the Small Business Administration doesn’t actually dole out SBA loans themselves. Instead approved banks and lenders distribute the loans and receive a percentage of compensation from the SBA if any of the loans default.
As such, it’s more important to determine what your specific lender requires than the general guidelines the SBA puts out. The more you know about who your lender is and what they ask of SBA loan applicants, the better chances you have of securing an SBA loan.

Prioritize Credit

Plain and simple, you have to have solid credit to get an SBA loan. But note that your credit –– and your credit history –– doesn’t have to be perfect.
Also, there are a number of measures you can take to improve your credit score. So don’t get discouraged if you’re dealing with less-than-ideal credit at the moment –– you’ve got the power to change it.

Prepare a Detailed Business Plan

Just as important as your credit history is what you plan to use your SBA loan on.
To that end, when you apply for an SBA loan, you should have a well developed business model to showcase how you want to implement your loan, and what it can do for your business.
Including financial projections and competitor analyses can also help bolster your case.

Consult with the Pros

Rather than attempting to fly blind when putting together an SBA loan package, talk to your lender first. Contact the National Business Capital team today and let us help you get on the path to securing an SBA loan. Remember, even if you don’t qualify for an SBA loan, there are plenty of other financing possibilities available to you.
For more information, download our free eBook to see what a little extra funding can do for your business  –– and what you’ll be missing out on without it!
securing an SBA loan

National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.