Who Else Wants Their SBA Guaranteed Loan Application To Be Successful By Using SBA Loan Sources?
Is there a secret to success with SBA guaranteed loan applications? Yes, there is in some sense. It is SBA Loan Sources. But it really shouldn't be a secret if you think about it. In fact, you would undoubtedly figure it out after some time. Or, after some frustrating trial and error. But you want access to capital, so why not go in the right direction from the beginning?
If you had a bad tooth and needed a root canal where would you go? Well, to start off you wouldn't go to the local oil change shop. You would start with a dentist. And you wouldn't want just any old dentist. You want to see a dentist that has done root canals before. And where they have been done to the satisfaction of the patients involved.
So it is with SBA guaranteed loans. And that's where SBA Loan Sources comes in. To start out with, you likely know that these loans are not made directly by the SBA. Instead the SBA guarantees a fixed proportion of the amount of the loan. So they are made by regular lending institutions. Despite the fact that to most of us, all lenders appear to be pretty good at shuffling papers, they are not all equal when it comes to the paperwork required for SBA loans.
It is extensive, and must be filled in the exact manner prescribed. After all, the SBA is a department of the US government. Employees of the SBA are ill equipped to comment on the merits of any particular loan, yours included. They are process people. They are satisfied if the paperwork is in order, and the loan complies with their guidelines. And paperwork being in order means that it is complete, with every I dotted and T crossed.
Again, the SBA won't deal with you directly. All your contacts will be with and through the actual lender. And the lender acts as an agent of the SBA is form if not in fact. So just like in the root canal example wouldn't you rather have someone working on your behalf that knows what they are doing, rather than someone doing it for the first or second time? I know I sure would and would use SBA Loan Sources as a guide.
The simplest way to increase you chance of succeeding with your SBA guaranteed loan application is to apply to a lending institution that has a history of success in funding these loans. Because your business and its fundamentals are unlikely to change from one lending institution to another. So the key point of differentiation will be your chosen lending institution, rather than anything else.
The right lending institution can make the difference between success in receiving an SBA guaranteed loan, and failing to be funded. The right lender will certainly reduce your level of frustration, and minimize the duration of the approval process. An experienced lender is the right lender. Experience will enable the lender to determine quickly whether your business and its proposed use of funds qualifies for an SBA loan guarantee. Experience will also aid your lender in directing you toward the guarantee program that is appropriate for your requirement.
Another benefit from choosing the right lender involves the piles of paper that must be completed and filed with the SBA in support of you application, and subsequently, your loan. The right lender will have considerable experience in producing the paper, and making certain that the paper produced is complete. That all of the needed information has been provided, and in the form required by the SBA.
Like anything else in life, there is a hard way to find the right lender, and an easy way. The hard way is to go through your own process of discovery. We can all learn by trial and error. But the easy way makes more sense to me. It is not 100% guaranteed. But it is a logical approach. And it really is easy.
Approach your local SBA office and ask for their list of top lenders under the various programs. This list will provide you lenders' names, and the numbers of loans they have made using SBA loan guarantees. It is logical to assume that those lenders that have made the largest numbers of loans will have the greatest amount of experience in dealing with SBA loan guarantee programs, and the related paper processing. Interview those that you believe to have the needed experience to confirm their continued lending using SBA loan guarantees. And to determine their compatibility with your needs.
One other suggestion. Think local. A local lender will have greater interest in your business than a branch of one of the large national lenders. The local lender will be much better tuned in to the challenges and opportunities that your business faces, unless you do most of your business offshore. A local lender will have a much greater stake in business success in your local community. And you are less likely to be mid way through the loan process and find that your key point person has been transferred to Kalamazoo.
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