How to Obtain a Business Loan in Florida
Starting a small business or growing an existing business can be an expensive venture. If you live in Florida and wish to develop a business but don't have the financial means, you can obtain a business loan. The Small Business Association provides a loan service for businesses to guarantee a bank loan. Prior to applying for a small business loan with the SBA you must have been turned down by a commercial lender due to insufficient capital.
Other People Are Reading
Instructions
-
-
1
Review the four major loan programs the Small Business Association offers. The most popular loan choice is the 7(a) Loan Program, which is for small or start-up businesses. This loan program offers guaranteed financing through a commercial lender. The 7(a) loan offers businesses the opportunity to secure a business loan for equipment, furniture, capital as well as building maintenance. Since the majority of loan lenders participate within the 7(a) Loan Program you will have access to more lenders and loan opportunities; view the first reference for 7(a) Loan Program information. The second loan program the SBA offers is the CDC/504 Loan Program, which is a fixed-rate loan offered by Certified Development Companies for start-up businesses (view the second reference for CDC/504 Loan Program information). The third loan program is the Microloan Program, which offers businesses up to $35,000 (as of 2010) to supplement finances for business needs (see the third reference for Microloan Program information). Lastly, the SBA offers a Disaster Assistance Loan Program for businesses, renters and home owners to repair damage caused by a disaster (view the fourth reference for Disaster Assistance Loan Program information)
-
2
Check with the SBA regarding loan guarantee eligibility according to the type of business you operate, which can be found in the fifth reference. The SBA requires that all businesses seeking a loan be a for profit company located in the United States, have owner equity and showcase a history of using alternative financial assistance, such as using personal assets. The eligibility requirements for each loan program can vary, thus check with the SBA prior to submitting a loan application.
-
-
3
Gather the loan application package materials after you have reviewed the loan requirements. The SBA offers a complete list of what you should include within your application package, which can be found in the first resource. You will need to correctly fill out a total of six application forms as well as provide a written description of your business profile, which includes: type of business, location, product/service, history of business, annual sales, number of employees, etc. You may also be required to include copies of your lease or lease proposal, franchise agreement, purchase agreement as well as copies of any licenses or certifications necessary to operate your business.
-
4
Send the completed application packet to your nearest SBA district office, the SBA offers a list of all district offices in Florida, which can be found in the second resource. After your local SBA district office approves your application, you will be notified within 10 days. Once your application is approved you will need to approach a loan lender.
-
5
Contact a loan lender of your choice, or ask your local SBA district office for a list of approved lenders, and schedule a loan-request meeting. During this meeting you will need to bring all the information you included within the SBA application packet as well as the notification of guaranteed loan approval from the SBA. After the lender reviews this information, you will either be granted or denied a loan. If you are denied, visit the next lender on your list until you have secured your business loan.
-
1
Tips & Warnings
Do not apply for an SBA Guaranteed Loan Program unless you have enough capital to cover your business expenses.
Contact your local SBA District Office if you have any questions regarding your application packet or if you're unsure of the loan program to apply for.
By not following the guidelines within the application process, your application will be denied.
References
Resources
- Photo Credit money. image by Petr Gnuskin from Fotolia.com
