SBA Loan

Discussion in 'Business Operations' started by JimLewis, Sep 4, 2003.

  1. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,835

    Hey, any of you guys that have been in business a while ever applied for / been approved for a SBA loan?

    We're planning a pretty large expansion possibly for next season and I was going to be seeking some big $ in commercial credit (a few hundred thousand) and someone suggested getting a SBA guaranteed loan. Just wondering how difficult or easy it is. I never really checked out that option before. My friend says our business is a prime candidate for getting that kind of loan.
     
  2. KerryB

    KerryB LawnSite Senior Member
    Posts: 661

    You need very detailed business records. You need to have a very solid written business plan, ability to show how you are going to repay the loan and put up your house land and first born. lol
    The SBA is a great way to go but they are real sticklers for details.
    You should have a small business office at you local community college. They can help you out with everything. If they have the "REAL" program, take it. Its worth the time and it makes you eligible for $25,000 loan plus you can get more on top of that.
     
  3. Moguy

    Moguy LawnSite Member
    Posts: 238

    I applied for one and as KerryB said they want detailed information on everything, plus the intrest rate was almost 9 percent compared to a home loan at a lower 4 percent. I found out after I took a small business course at a college that your business plan is a start to the process, which the SBA will then help you find a financial organization that will fit your needs the best.
     
  4. CSRA Landscaping

    CSRA Landscaping LawnSite Bronze Member
    Posts: 1,232

    Jim, I've had two SBA loans already. They're real easy to work with (at least, in SC) and they make life real easy on you.
     
  5. Island Lawn

    Island Lawn LawnSite Senior Member
    Posts: 632

    I've been to a couple of SBA seminars.
    They took us step by step through the process of applying for different loans.

    Lots of good info.
     
  6. LawnLad

    LawnLad LawnSite Senior Member
    Posts: 738

    Ultimately you're pitching a bank for the loan, the SBA just guarantees the loan to the bank if you default. So you're going to have to pass their criteria for the loan with the business plan, application, etc.

    Find out what banks in your area are SBA Preferred lenders. Banks reach this status if they make X SBA loans. If you're able, find out which local banks are seeking the preferred lending status and pitch it to them. They'll be more hungry since they want the preferred status. They may not be able to just sign off, but they can help you with your approach and give you more time since they want to see you be successful. And, they'll still ask for your first born, and everything else inlucding the kitchen sink for collateral.
     
  7. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Posts: 4,347

  8. Green Finger

    Green Finger LawnSite Senior Member
    Posts: 839

    Hey Jim,

    Base on your threads I have read over the years. You have your business in order. Go for it. Also ask for more than what you want that way you get what you want. If you need help with the business plan. E-mail me I'll help you out.
     

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