So you’ve decided to take the plunge and start a business? Once you have your business plan developed your next step is to consider financing options. Like ice cream, there are many options. It will be up to you, not a third party to decide which is best. Take your time, ask the tough questions and remember that only YOU will be responsible for your loan!
Your first step should be a visit to the SBA Small Business Loans web page dedicated to lending information. Information about financing an export & import business is also available. So if you are looking locally or globally you’ll find information that is timely and un-biased. The SBA guarantees a loan but it will be the lender who makes the loan. So, how do you ensure that you are “bankable”?
Look at your credit score. Is it high or low? If low, you may not qualify for a loan until you get it to a level that the lender finds acceptable. This might mean holding off but the wait will be worth it!
Look at your debt/income ratio. Most lenders look at about a 28% debt to income ratio. How do you figure this ratio out? Your total monthly debt divided by your total monthly net income.
In the excitement of starting a business you need to ask tough questions and if you are afraid of the answer, then you may want to pause and ask yourself why. Great ideas and plans tend to die greatly if not financed correctly. Your business plan will go a long way in identifying how much you’ll need to finance your dream.
As a veteran you may qualify for two SBA loan programs that are specifically targeted to you:
Loan Initiative for veterans and members of the military community wanting to establish or expand small businesses. The SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative, making it more accessible and easy to use.
MREIDL provides funds to help an eligible small business meet ordinary and necessary operating expenses that it could have met, but is unable to meet, because an essential employee was called-up to active duty in their role as a military reservist.
If you’re unable to get a bank loan there are a variety of other lending programs available for you. There are alternative lending sources and venture capital opportunities available nationwide.
For up to date financing options visit the SBA’s Lending search tool today and start your road to success!
Small Business Administration (SBA) Approved Franchises
Applicants for Small Business Administration (SBA) approved businesses are granted expedited loan processing when applying for funding support from the SBA. Browse through the SBA-approved franchises to see how you might benefit from excellent Small Business Administration programs.
All of the businesses who appear on this list of SBA-approved franchises have had their franchise agreement pre-approved by the SBA. This approval will shorten the loan process, while ensuring that eligibility decisions remain consistent. SBA-approval means that you will get into business quicker!