About Federal Short-Term Loans
For federal short-term loans, find a bank that is a member of the SBA loan program, fill out information on business history, and provide the appropriate documentation. Properly prepare financial statements to get a short-term federal loan with advice from a financial consultant in this free video on investments.
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You might be a farmer, a defense worker, a student or an entrepreneur. In all cases, the government has loan programs designed to provide capital for you. What does it take? Well the first thing to do is to visit your local bank and to ask them if they're a member of the SBA loan program. The bank actually loans you the money. All the SBA does is to guarantee a portion of that loan to the bank. It doesn't mean that the lending standards are any different, but it might mean that you get a better rate. Like any bank, before they loan you money, they're going to want to know how they're going to get it back. Who are you, what's your history of paying back loans that you've had in the past, do you have experience in that industry group, does the company that you're involved with or is looking for financing, is it a legitimate business and are the prospects for a prosperity good? In all cases, the answer has to be yes before you're likely to get funds. The different between borrowing directly from a bank and having an SBA guarantee is usually not in whether you get the loan or not, but in the rate that you're going to pay. An SBA guaranteed loan will generally carry a lower rate of interest then a standard bank loan. Other questions they're going to ask, be prepared, they want your name, social security number, the name of everyone else in the business, properly prepared financial statements and all other data, copies of the business plan perhaps in your company that you're looking to borrow money for. That's big or small, the same things hold, the bank want to know how are we going to get paid back? Hope that helps, I'm Roger Groh with Groh Asset and call Uncle Sam or go visit him at sba.gov. Thank you very much.