If you’re a budding entrepreneur or are already in business and looking to grow, consider applying for a Small Business Administration (SBA) loan. Whether you want to purchase assets for your business, refinance existing debt or simply expand, you can access an SBA loan through Comerica.
You might have heard about SBA loans while not knowing exactly how your business can get one. Congress created them in 1953 to help small businesses access financing at reasonable terms.
At Comerica, we’ll work with you to evaluate your needs and find an SBA loan for your situation. We’re an established SBA preferred lender so we have plenty of experience to help your business succeed and grow.
So how do you know if your business is able to access an SBA loan? Although it may seem daunting, obtaining a business loan is not always as taxing as you might think.
Your bank will determine if you meet their criteria, but there are a few SBA-specific conditions. For the SBA’s most common loan program (general small business loans), you’ll have to:
Other loan programs the SBA offers through its preferred lenders may have different criteria. Take a look at the SBA’s loan program options.
If this is the first time you’re applying for a business loan, the bank will probably take your personal credit rating into account. Find out how your credit rating stacks up with Equifax.
A strong, clear business plan is a vital part of the application process. Your bank will want to understand your:
They’ll also want to know the amount of money you plan to borrow. Use Comerica's free online business plan tool to make a start on your plan.
Provide a detailed breakdown of exactly how you intend to spend the loan proceeds, and what your repayment strategy will be. You’ll need to demonstrate how you’re going to pay back the loan if your application is to be successful.
Your bank will be interested to know how you’re contributing to your business before they grant you an SBA loan. Inform them of your:
You’ll be asked specific questions about your business and business plan. Ensure you have that information readily available. The more information you can provide, the better positioned your bank will be to assist you.
Regardless of whether you’re preparing documents for an SBA loan or another small business loan from your bank, you’ll probably have to submit most of the following items:
At Comerica, we value small businesses and want to help them get ahead. We have the right solutions for you and your business.
Get in touch with us to understand what we look for when considering a business loan. It will go a long way to helping your application be successful.
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