To be eligible for A SBA loan, your business must fall within a size standard set by the agency. In addition the company should be independently owned and operated for profit and not be dominate in its field. Loans cannot be made to speculative businesses or businesses engaged in gambling or pornography. Management must be experienced and of good character with a cash flow profit history that indicates an ability to service the proposed debt. The ratio of equity to debt must be reasonable for the industry and adequate collateral must also be available to support the loan.
Good credit is a major factor in determining eligibility.
Loans are also available to persons who wish to start a business. Most of the conditions and terms mentioned above are also applicable for a start up. A well thought out business plan and a capital contribution from the applicant will also be part of the requirements of a start up loan. SBA loans are probably the best type of financing a start up business can find in today's market. Please click on FAQ for list of the most frequently asked questions and answers.