The main requirements for getting a loan from the SBA include a business plan, a personal background, a personal credit report, income tax returns, business credit report, bank statements and legal documents, according to SBA.gov. Collateral requirements and other legal documents regarding a particular business may also be needed.Continue Reading
To be eligible for a SBA loan, a business needs to operate for profit, conduct business on the territory of the United States, be a small business and have reasonable invested equity, states SBA.gov. The business requiring a loan needs to be able to demonstrate that the funds are going to be used for a sound business purpose and be able to prove a need for the loan proceeds.
Some of the factors that make a business ineligible for a SBA loan include a foreign location, engaging in illegal activities, engaging in pyramid sale business, being a life insurance company, being a government-owned entity and being a speculative business.
When applying for an SBA loan, individuals need to be prepared to answer detailed questions about their business and the way they intend to spend the funds. Information about any existing debt and the name of the creditors may also be required.Learn more about Credit & Lending