How to Apply for a Federal Loan

There are certainly a lot of federals loans to choose from---whether it is for your small business, your education, community project, or if you are a veteran. It may take a bit of investigative work to find federal loans that you or your business qualify for. Some federal loan money is disbursed through banks and through state and local governments and agencies, and you can often apply for it online. After you have found a loan that will meet your needs, be prepared to dedicate a lot of time to the application process.

Instructions

1. Explore different kinds of loans and find which one best fits your needs. Carefully read through the application requirements. Be prepared to thoroughly answer questions about why you need the loan, how it will be used, and your business history. Have a resume, business plan, personal and business credit report, income tax returns, and financial and bank statements ready to be submitted as part of the application process. Collateral is occasionally required and legal documents such as licenses, leases, and contracts may be necessary as well. The information requirements of an application for a student loan (FAFSA) may be limited to your financial history.

2. Mark the application deadline on all of your calendars and be vigilant about completing and submitting the application before the deadline approaches. Give yourself plenty of time beforehand to gather all of the application's supplemental materials.

3. Gather copies of all necessary supplemental forms for your application according to the federal loan's respective requirements and be prepared to submit them.

4. Determine if you must apply online, by mail, or in person. Get multiply copies of the application in any case and fill out a draft beforehand.

5. Submit the application by its deadline. Be very clear of the submission deadline's time zone.

References

• Business.gov: Loan Checklist
• Federal Direct Loans for Education
• Business.gov: Small Business Loans

Resources

• FAFSA