Small Business Start Up Loans
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Small business start up loans can be made easier by contacting the Small Business Association and getting their free information on the procedures to follow when making application. The first requirement in the SBA procedures when applying for a small business start up loan is a loan proposal. State the name and address of the company, the names and Social Security numbers of the principal participants in the venture. Then describe the purpose of the loan, the amount required, and exactly how it will be used.
The next part of the proposal when applying is to describe the company, its history, structure, and management profile. Then, anyone applying for financing must provide market information. Clearly define the market and products that the small business start up loan will help sell; identify the competition and how the company will compete; and include a profile of the target customers and how their needs will be met with the money. Financial information must be included, of course. Include projected balance sheets and income in the application for small business start up loans. Then include financial statements for all the principal borrowers and describe what collateral is available to be pledged as security.
All of the above may seem a bit daunting, but if able to present an organized proposal, the lender will recognize true common sense and will be more likely to see the borrower as worthy of the financing sought. If applying for SBA small business start up loans, they can be set up for as long as 25 years for real estate purchases, 10 years for equipment, and 7 years for working capital. Having some financing in place before asking for the small business start up loan will also be in the company's favor. Having personal savings to put into the venture, or friends and relatives who might contribute, will lend credibility to the venture and will be a more desirable risk to the bank or credit union when applying. One might also contact venture capital firms who would grant financing in exchange for an interest in the company.
Aside from these specific financing terms, there are grants available, and quite easily found on the Internet. There are several grant programs available for modest fees that will guide the new entrepreneur toward available funds. Some grants require matching funds, but others do not. It may take a while, but it would certainly be worthwhile to cut down substantially on the amount needed in small business start up loans. "For whosoever hath, to him shall be given, and he shall have more abundance" (Matthew 13:12a). Also included on the SBA web site is some excellent information on starting a new company and making it successful after receiving the small business start up loan.
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