The SBA Loan Program is an awesome program, especially now!

1.  The normal SBA Loan Fees (Actual Fees Charged By The SBA) are waived.

2.  Normally Your SBA Loan Will Require Less Upfront Money and Give You A Longer Period Of Time To Pay It Off, Compared To Conventional Loans.

3.  SBA Loans generally allow a lower credit Score than Commercial Loans.

4.  The Government Has Raised The Government Guarantee to 90%.   AWESOME.

As A Business Owner In Search Of Financing, You Are Facing Many Challenges. 

Challenge # 1: 

Banks Are Being Highly Regulated.  This means that your loan will be scrutinized from all angles to insure it is a good loan.  What this means to you is that your loan package must be professional completed and it must be properly documented.

Challenge # 2:

SBA Loan Requirements Can Be Very Time Consuming and Cumbersome.  Most business owners do not access the SBA Program due to the government Red Tape.  Be prepared to fill out a lot of paperwork.

Challenge # 3: 

When applying for an SBA Loan without professional Loan Packagers and Consultants, you can plan on your SBA Loan Application taking much longer than a conventional loan application.

Challenge # 4:

The SBA Loan Program has many different types of Loans and you will need to choose which one best fits your business model. 

Challenge # 5:

Most Lenders do not have experienced Loan Officers in their SBA Departments. Due to changes within most Lending Institutions, most Lenders have filled these positions with relatively new Loan Officers or Loan Officers with Commercial Loan experience and not SBA Loan Experience. This makes it difficult for you to get good advice and assistance. 

Challenge # 6:

Your financials must be properly documented and you must be able to show cash flow to payback the loan.  This sounds like common sense but it is much more difficult in reality.  Keep in mind that the Lender’s underwriters will be the ones that look at your package and recommend approval or disapproved.  You must meet their criteria when putting your loan package together.

Challenge # 7:

Not all Lenders are SBA Lenders.  Additionally, not all SBA Lenders do all types of SBA Loans.  Restaurants are a great example.  There are very few Lenders willing to do any type of Restaurant Loans.  This means that you now have to search for a Lender that will do Restaurant Loans.  Easier said then done.

Challenge # 8:

Hard economic times have caused businesses to use personal credit and money sources to pay company bills.  These challenges must be properly documented and more importantly it must be shown how your new loan will overcome these issues.

a.  Take the business owner who has applied for a construction loan / permanent loan on building a commercial building project.  The bank has now been taken over and the permanent loan is not available, leaving the business owner with a construction loan.  The business owner is now told to go find a new bank for the long term loan.  This particular case has now put a lot of pressure both mentally and monetarily on the business owner. 

b.  Take the business owner who had never been behind on a payment, but now the Lender has either reduced or eliminated their Line Of Credit.  Very often businesses rely on this credit to make money.  

Challenge # 9:

Cash Flow Projections and Revenue Modeling must  be within industry norms and make sense.  Lender underwriters use data for each industry to evaluate your submitted Cash Flow Projections.  These projections need to be within the Industries’ norms.  This can be a challenge in itself trying to get this correct.

Challenge # 10:

Most business owners are too busy running their business and have very little time to spend on getting their SBA Loan.  The time required can be immense.  Most business owners will hire a professional consultants to handle the paperwork and loan packaging of their loan request.

You can see from these 10 Challenges that it makes sense to hire a professional and experienced team that knows all of the SBA’s requirements and can handle all of the hard work for you.  The cost is usually minimal and pays for itself many times over.

Call us now and see how we can help. 

Our expert staff has been involved with

over $ 1,000,000,000 in loans throughout their careers.

Our initial Consultation is free…

Contact us now so we may assist you!!