The Complete Guide to Small Business Lending

The small business lending journey requires a considerable amount of time and energy on behalf of business owners to obtain approval. While there are many different types of loans and lenders available, most small business loans have the same overall criteria around eligibility requirements. In order to know where to look, you’ll need to ensure that you identify and cite credible sources. One of these sources (and probably the best) would be The U.S Small Business Administration (SBA). They make the entire process of finding a suitable lender and loan much easier than if you wouldn’t expedite them and their resources.

The SBA is a great and highly credited source for identifying your specific loan needs. Though the SBA does not fund loans itself, the administration is responsible for setting specific guidelines that lenders must follow in order to be a part of their program. Credible loan lenders under the SBA offer small business owners flexible finance terms and conditions, as well as relatively quick funding so that your business can get moving as soon as possible.

Some popular and rather useful loans included in the SBA are the CDC/504 – which is a loan designed for economic development within certain small businesses – and the micro-loan program, which provides small and short-term financing for supplies, equipment and other needed tools. Another type of loan the SBA offers is the 7(a) program, which is a general funding program, as well as a popular one. The specific terms to this loan are discussed between the lender and borrower, but the provisions required apply to all SBA 7(a) loans. The 7(a) application checklist can be found on their website.

Disaster recovery loans are also provided under the SBA. These low-interest disaster loans provide long-term recovery assistance to businesses of all sizes. These loans are available for damage to property not fully covered by insurance. While small business owners usually have some insurance coverage, it often does not fully cover all losses from the damage. You may use this loan for not only physical damage, but also economic damage. Economic damage entails being unable to meet your business obligations and pay ordinary operating expenses.

The SBA also offers a free online tool that assists you in determining which lender is best for you. Lender Match is a referral tool within their website that connects small businesses with participating SBA-approved lenders. The entire process is fairly easy and you will be matched within two days, making it also very quick. The lender tool includes only four steps you’ll need to take before you’re well on your way to securing a small business loan. The SBA makes it easy and efficient for small business owners to scope out the perfect business loan lender your business needs.

The SBA is the most credited and useful resource to find the loan you need. It has a variety of tools, information, and checklists for you to use and review before communicating with lenders. In order to make the entire loan application easier, ensure that you’ve visited the SBA website so you can get the most out of the entire process.

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About Dequiana Jackson

Dequiana Jackson, CEO of Inspired Marketing, Inc., is a small business marketing coach who shows women entrepreneurs how to use solid marketing strategies to turn their life’s passion into a profitable, service-based business. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

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