Those who have obtained Small Business Administration loans often have the same consensus on the process and results. Whereas an SBA loan can certainly offer some attractive terms for a small business, the qualifications to obtain and the time it takes to secure one of these loans can be frustrating for the borrower. SBA loans and the application process can be cumbersome and it takes a specialist to deal with the idiosyncrasies of the 12 different SBA programs available.

Joslen Commercial Funding has recently partnered with a leader in this specialized field to expand the services we can provide for our customers. What makes this partnership unique is that the principals spent years at a conventional bank (Wells Fargo) processing SBA loans resulting in a complete understanding of the SBA underwriting processes. In the many years since they created their own company only two times have they given conditional approval to a borrower and not had the loan come to fruition. These types of results are invaluable as it keeps borrowers from jumping through the many hoops required only to ultimately get turned down.

Below is a short synopsis to determine if a SBA loan makes sense for you. Obviously, there are many more details over and above these that you will need to know. If you believe you may qualify, contact me to introduce you to Joslen Commercial Funding’s new partner.

What does it take to qualify?

• Excellent credit score
• Consistent cash flow
• Collateral - not always required

What is an Eligible Business?

• Must operate for profit
• Be engaged in, or propose to do business in, the U.S. or its territories
• Have reasonable owner equity to invest
• Use alternative financial resources, including personal assets, before seeking financial assistance
• NOTE: there are some types of businesses that do not qualify as well

What will I need to provide?

• SBA loan application
• Personal Background and Financial Statement
• Business Financial Statements
• Loan application history
• Tax returns (3 years)

Some might argue that if one can obtain an SBA loan then certainly that is the route that should be taken. That is not necessarily true. Financing and leasing business-essential equipment is often the right route when looking at specific purchases. When funds are needed for a variety of expenses (such as payroll, debt, capital improvements, expansion, marketing, etc.) then an SBA loan can be the preferred alternative to a conventional working capital loan. Talking with your financial expert or your tax consultant would be a wise move when considering if an SBA loan makes the most sense for you.

Until next month,

Tim