What does the SBA look for in a loan applicant?
Generally, SBA is looking for good character, management expertise, and the commitment necessary for success. Adequate equity investment by the borrower in the business and sufficient funds to operate the business on a sound financial basis (for new businesses, this includes the resources to withstand start-up expenses and the initial operating phase). Also, the ability to repay the loan on-time from the historical or projected operating cash flow is essential. A feasible business plan is a must.
Related Questions
- If an applicant is offered, but feels he cannot afford a Small Business Administration (SBA) loan, can he/she instead apply for an IFGP grant?
- If the SBA loan was to help the applicant replace the contents of their home, is that considered a duplication of benefits?
- What do lenders look at to determine loan approval?
