Many small business owners have complained about the economy and how it has hurt business. Yes, it has! You need to take control and do what it takes to meet the requirements for an SBA Loan.
If you need money, then do what it takes to qualify for an SBA Loan.
In Pennsylvania, each spring trout season would start with great fan fare. Every fisherman would scout out where the fish and game commission stocked the trout. That’s right, plenty of fish to be landed on the first day. Everyone had a great time. Then a funny thing happens. People put the rods and reels away until the next year. Why? Because, it’s hard to catch native trout. Most people don’t want to fail, so they only fish when the fishing is good.
Same goes with business. If you started a business because it was easy and anyone could do it, then it’s time for you to find a job. Just like the fair-weather fisherman in Pennsylvania who only fish when it’s easy, you need to get out of business today. Don’t wait. Get out now. This is not the time to be getting in the way of small business owners that will do just about anything to stay in the game; the owners that have a passion for what they do. If you just got into business for a fast and easy buck, then don’t bother to read any further - just head on over to Monster and find yourself a job.
So, still reading, huh? Good, because you’re the person I want to talk to. If you are the average small business owner, then you probably have some challenges (yes, I know, but sometimes you have to state the obvious). Let’s start at the beginning, which is that you probably have to create some discipline. Here is what I want you to do:
•Forget about a P&L, and start to work off of a cash flow statement.
•Get a business plan written as soon as possible.
•Know what it’s going to take to qualify for an SBA Loan.
Let’s talk about the SBA, and why you need this type of loan. The SBA will give a commercial lender a guarantee for funding SBA underwritten loans. The SBA does not have money to lend. You must go to a certified lender in order to get the SBA guarantee. You will have to do some work in order to get the loan. The days of going to the bank and getting a credit card are over. You will need to show that you are not a fair-weather business owner, only in business when the going is easy.
Why the SBA Loan? Because, it’s a business loan. Most small business owners did not get funding through a business loan; and, because they did not have a business loan, they didn’t have to do the necessary research to obtain the funds. I believe this is where we have all gone wrong. We took out home equity loans, personal loans, or credit card cash advances to start-up or maintain our businesses. Now that the alternative funding methods have all dried up, we need to act like real small businessmen and women and do the work toward qualifying for a real business loan.
How do you do this? Easy, learn about the SBA Loan program and what it will take to get funding. For example, if you needed $25,000 for equipment and you understood the SBA loan programs, you might want to look into an SBA Microloan. If it was a land purchase to expand your business, you could look into a 504 loan. Or, maybe, you would just fund your expansion with a SBA 7a loan program.
In order for your business to receive a loan, you will need to understand everything about your business. The commercial bank that will be funding the loan will want you to have everything in order to determine if your business concern is viable. Good information for any business owner interested in knowing if his or her business will be successful or not. Who’s not interested in that?
You see? Real business loans for real businesses. Learning about the qualifications, and then doing what it takes for capitalization will only serve to make your business stronger. In other words, if you don’t want to learn about and qualify for an SBA loan, you have to ask yourself if you’re a real business or just fair-weather fishing. Even if you don’t need a loan, you should be willing to work to be sure that you could qualify for one if you ever needed to.