Are you planning to start a new business and looking to get financial assistance? Have you heard of the SBA MicroLoan program but don’t know if you are eligible for the loan? Are you confused about which type of loan would be suitable for your start-up?
Applying for a loan can be a herculean job, but you can fill and collate all the documents required to apply for a loan with the proper guidance.
Let us guide you through what is expected of you if you plan to apply for SBA Microloans. These loans are the most popular amongst the new start-up companies. Due to the lower interest rate and flexible payment option, the microloan program is the most availed loan amongst other financial loans offered by banks.
How does a start-up business apply for SBA MicroLoan?
The federal government designed SBA MicroLoan to help small-scale businesses sail through the rough market and sustain themselves.
Which business can apply for a microloan?
- Restaurants
- Beauty parlors
- Childcare centers
- Confectionaries
- New start-ups
- Non-profit organizations
- Retired army personnel
- Small scale business with less than 500 employees
- Business with less than 7.5 million turnover per annum
What documents should start-up companies submit while applying for the loan?
To apply for SBA MicroLoans, a borrower has to submit a set of standard documents, which include:
- Personal Information
- Resume
- Personal and Business Credit report
- Tax details
- Other documents
- Business plan
- Purpose of loan
- Statements
- Miscellaneous documents
What aspects does the Intermediary Lender check to approve your loan?
An intermediary lender checks various aspects before approving your loan. These are:
- Credit history
- Loan Repaying Capacity
- Character Certificate
SBA MicroLoans are the best options when you:
- Need Small Loans: Start-ups looking for a smaller loan amount to buy inventory or furniture should apply for the loan.
- Need funds immediately: In case you require funds to catch up on sudden expenses for which you were not prepared, then SBA loans are an easy alternative that you can avail easily.
- Require long loan period: With SBA Microloan, the borrower can get a loan period of close to six years. This gives the borrower a reasonable amount of time to stabilize the company and establish a strong business.
Take Away Words:
SBA MicroLoans are the best options when you feel a cash crunch and require money to get a breather or include cash rotation in your business. These loans are also suitable for start-ups that struggle to secure a loan, as the company or the business is small in size. Small businesses struggle to get loans from prominent banks, and MicroLoans intend to cater to these small start-ups.
In case you are confused about how to go about applying for a microloan, you can always take the help of SBA50K, who holds strong experience in guiding new businesses in securing the much-required loan for their business without any hassles.
Why wait now?
If you have a great business idea, don’t hold yourself.
Apply for SBA MicroLoan.
Visit us today!!!
Also Read: https://justpaste.it/8obxy
#How to Get an SBA Startup Loan #get a business loan