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Small businesses like yours stimulate the economy by creating jobs, and SBA loans help stimulate your business. Let’s break down some of the basics of SBA lending, specifically what you need to obtain an SBA loan.

The SBA has a variety of loan programs available based on your business and credit. There are term loans and revolving lines of credit with varying terms and loan amounts. SBA 7(a) loans are the most basic and most used type of loan in the SBA’s business programs. The program offers up to 25-year, fully amortized loans that result in lower monthly payments for the borrower.

The size of an SBA loan can range anywhere from $25,000 to $5 million, and the loan proceeds may be used for a variety of business needs including equipment purchases, stocking inventory, land/building purchase, building construction, purchasing a business and working capital.

A typical loan requested by a business can take up to six weeks to complete; however, a complete loan package will expedite the process. You can go to any Zions Bank branch for information and to obtain a packet.

Also, choosing a bank like Zions with SBA “preferred lender” status can significantly speed up the loan process. This is because the SBA accepts the preferred lender’s underwriting instead of doing its own.

Zions Bank’s Business Resource Center is available for free business counseling to help you with your business plan, financial projections and any other needs. Here are some additional ways you can better position your business to qualify for an SBA loan before you meet with your lender:

·      Polish your business plan. Make sure you have a comprehensive, thorough document that will help lenders feel more confident in your ability to make sound business decisions.

·      Organize your documents. Gather key documentation, including tax records and earnings statements, and be prepared to explain that documentation. 

·      Review your credit. Check up on your business credit file to make sure there is no fraudulent or inaccurate information.

·      Articulate why your business has a better “value proposition” than your competitors.

·      Know the risks in your industry and have a plan to mitigate them.

·      Provide at least two ways to pay back the loan.

Let Zions Bank’s Business Resource Center assist you with your business needs. Call us for a free appointment at 801-594-8245. We are open Monday through Friday from 9 a.m. to 5 p.m. Beth Holbrook can be reached at beth.holbrook@zionsbank.com