609-664-7955 gcaruso@artofbv.com


The United States Small Business Administration—or SBA—loans are primarily for new businesses to get off the ground.

The amounts you can receive vary by loan program but some range up to $5 million! Funds also may be more accessible to some borrowers who struggle to qualify for other business financing methods.

However, most new business owners say that applying for an SBA loan can feel daunting because of the eligibility requirements and application procedures imposed by individual SBA lenders.

Follow these steps to get an SBA startup loan:

Step 1 –Calculate Your Startup Costs

Before you apply for an SBA startup loan, you need to evaluate the needs of your business. First, consider one-time startup costs and then recurring expenses (which may include everything from renting office space to buying equipment and covering payroll for your first employees).

Step 2 – Check Your Eligibility

The Eligibility requirements vary by SBA loan type and individual lender, there are a few general requirements that a business must meet to qualify for an SBA startup loan.

A Business Must: 

  • Operate for profit in the U.S. or its territories
  • Constitute a small business by SBA Standards 
  • Demonstrate a need for the loan funds
  • Have reasonable invested equity
  • Have already accessed alternative financial resources, such as personal assets
  • Use the loan proceeds for an acceptable business purpose
  • Not have any delinquencies on debt to the U.S. government

Step 3 – Write a Business Plan


Most startups do not have extensive financial records like established businesses, so business owners can improve their approval odds by drafting a comprehensive business plan that demonstrates how the business will make money and on what timeline.

Step 4 – Choose a Loan Type

There are several loan programs to meet a range of borrowing needs, however not all of them are good fits for startup companies.

The Options Include: 

  • SBA Microloans
  • SBA Community Advantage Program
  • SBA 7(a) Loans
  • SBA 504 Loans


Step 5 – Research and Compare Lenders


Borrowers must apply for an SBA loan through an approved financial institution and meet the individual lender’s application and credit requirements. The SBA provides small business owners the Lender Match Platform, which helps business owners choose the best lender to fit their needs. 

Step 6 – Prepare and Submit Your Application


Individual lenders impose different requirements, but there are some materials that are requested by most lenders. In addition to a business plan, prepare the following documents as part of your loan application:

  • Copies of business licenses and certificates
  • Business overview and history
  • Personal and business tax returns for the past two years
  • Current and projected financials for one to three years
  • Profit and loss statement and balance sheet
  • Loan application history

Read The Full Article By Forbes That Covers Each Step In-Depth HERE.


Questions, want to know more, contact Gregory R. Caruso, Harvest Business, LLC, t/a The Art of Business Valuation.