For many small business owners, SBA loans are the bestpathway to affordable capital. But the process can be long and complex if you’re unprepared. Knowing what lenders want upfront will save you weeks of frustration and dramatically increase your odds of approval.
## Why SBA Loans?
- Lower down payments (as little as 10%).
- Longer repayment terms (up to 25 years for real estate).
- Competitive interest rates.
## Step 1: Prepare Financial Documentation
- Three years of tax returns, profit and loss statements, and balance sheets.
- Interim financials (up-to-date, within 60 days).
- Accounts receivable and payable aging.
## Step 2: Review Credit Profiles
Both **personal and business credit** will be reviewed. Errors or negative marks can derail applications. Address them before applying.
## Step 3: Draft a Strong Business Plan
Lenders want to know how funds will be used. Include:
- Executive summary.
- Market opportunity.
- Revenue and expense projections (2–3 years).
- Management team background.
## Step 4: Collateral and Equity Injection
Expect to provide collateral and at least 10–20% equity injection. Be prepared to demonstrate liquidity.
### Example
PAC Consulting worked with a trades business owner who needed $750K for expansion. By cleaning up credit, preparing detailed projections, and introducing them to the right SBA lender, the loan was approved within 45 days.
PAC Consulting partners with SBA lenders nationwide. If you’re ready for growth capital, we’ll make sure your application is bulletproof.