Most start ups think about getting a SBA loans for small business. Securities Finance is the easiest solution because you do not need submit an SBA package to qualify for small business funding. Do you know what is involved in submitting a package for SBA?
Below is list of documents for a SBA package.
1. Executive Summary.
- Who are the borrowers?
- What type of business?
- Who are the owners?
- What do they need financing for, how much money do they need, how will it be used? Specify project costs (example: purchase real estate $500K, renovation $200K, purchase equipment $300K, refinance business debt $150K, marketing and soft costs $30K, etc)
- How much do they plan to put down on the deal? 20% or more for business only projects.
2. Business tax returns on all businesses. Last 3 fiscal years from applicant business and selling business. Complete copies, including all schedules, statements, K1s. If they are not available immediately we can take year-end financial statements for the last 3 years. Statements include Profit & Loss (Income) and Balance Sheet.
3. Personal Financial Statement aka Commercial Application. The PFS needs to be dated within 60 days. Each owner to complete their own, jointly with their spouse if married. The PFS must be signed by owner and spouse in BLUE INK.
4. Buyers provide 3 years of personal tax returns.
5. Resume of prospective owners. This is especially important if the business is start-up or a business acquisition because the lender is looking for experience.
6. Credit Report. Most lenders want credit scores showing 660 and higher. The credit report needs to have been pulled within the last 60 days.
7. For franchise loan you will need to provide the UFOC which stands for Universal Franchise Offering Circular.8. Business Plan with proforma and projections.
After submitting your SBA package, there is no guarantee that you will get approved. In fact many banks and lending institutions are stating risk factors as their main reason for turning down small business loan requests.
Don't fear...you can get a loan for your business with alternative financing. One alternative source is a securities loan.Securities Finance has become very popular which you can use to kick-start your small business easily. All you need for a securities loan is a complete Personal Financial Statement and 3 months of your securities statements.
Security loans permits entrepreneurs to maintain ownership of their stocks and borrow up to 95% of the value of the stock. You can get your seed money easily for your business for a great rate and in as little as 30 days.
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