Whether you’re a “big name” business or an up-and-comer, there are a couple of common reasons why SBA 504 and 7(a) loan applications can run into speed bumps. The business owner may:
- Combine personal finance numbers with business finances when reporting
- Have trouble explaining a business plan or projections
- Need assistance demonstrating depth of management
- Run into a delay during the SBA’s compliance check, newly instituted as of August 1, 2023
As a non-profit, community-based partner that is certified by the U.S. Small Business Administration, Seedcopa helps package your successful application for government loans. Such loans typically offer the best terms and interest rates for small to mid-sized businesses, but submitting the ideal loan application is key.
Here are a few tips to smooth the process of applying for business loans, including the SBA 504 or SBA 7(a):
- The more organized you are, the better. Be sure to leave extra time for the SBA’s compliance check. If no issues arise, this part of the process can add a couple of days to the SBA loan process than previously. If there are irregularities, the delay will be longer.
- Provide personal and business tax returns from the three most recent years. As of this writing, your 2022 tax returns should be available. If you’re on a tax filing extension, now’s the time to get it done.
- Make sure you have a clearly delineated business plan ready to show prospective lenders. (Check out our blog on 4 Reasons to Start a Small Business Plan Now.)
- Provide interim financial statements for your business.
- Be sure to disclose details on all prior government financing, specifically the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loans (EIDL). Failure to disclose these loans can cause significant delays in the loan process – especially if there were repayment or other issues.
- Good news! One of the forms previously used to process your loan application, a statement of personal history, is no longer necessary.
Many businesses think they need all of their ducks in a row before reaching out to Seedcopa. But we advise you to contact us sooner rather than later. The sooner you contact us, the more quickly we can discuss a timeline and get your project moving.
