1. Preparing for Your SBA Loan Application
Before you start gathering documents, discuss your business goals with Fidelity, your Preferred Lender. We can provide suggestions on the best loan products for your needs and help you focus your efforts on the right application process. Being well-prepared will enhance your chances of assembling a successful loan package.
2.Gather Essential Business Information
Business Structure and Leadership: Describe your business’s purpose and structure. Provide a detailed business plan with projected financial statements. Include information about your management experience and the personal backgrounds of your leadership team, such as previous addresses, educational background, and any criminal records.
Legal Documentation: Prepare your articles of incorporation, franchise agreements, licenses or registrations needed for your business, and any applicable lease documents.
3. Establish Creditworthiness
Credit Reports: Submit both personal and business credit reports, along with income tax returns and bank statements.
Financial Statements: Provide comprehensive business financial statements, including profit and loss statements, cash flow reports, balance sheets, and an accounting of all business debts and creditors.
Collateral Requirements: Be prepared to use assets as collateral, which will be determined through your financial statements.
Debt-to-Worth Ratio: A higher personal investment with minimal company debt makes you a more attractive borrower. Ensure you have strong financial backing and limited company debt.
4. Define the Purpose of the SBA Loan
Loan Purpose: Clearly describe your goals for the loan and how the funds will be used to grow your business. Make a compelling case that you are a reliable borrower who will repay the SBA-backed loan in full.
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