Your SBA Business Plan Template

The SBA business plan template has two distinct parts:  the SBA form, and the business plan that you will create.  Neither one is difficult when you have gathered your information.  And there's the rub:  you do need to gather together your information.

The SBA business plan template itself is a rather short pdf document.  Once you've got your real business plan under control, you can simply pull information out of it and stick it into the SBA form.

Because the template for the SBA loan is so bare bones, it doesn't do a silly bit of selling.  Not a bit.  And you and I both know that if you want to borrow money, you have got to sell your business to the lender.

So how do we "sell" a business plan to the SBA?

Well, pretty much like you would sell it to a regular bank.  In truth, your bank is the entity you will be dealing with.  The SBA simply guarantees part of your loan, making it more attractive to many banks.  The SBA business plan template is the formal document requesting SBA consideration, but it is still your bank that will make the final determination.

So let's give the bank everything that it might need.  Start with a solid business plan. Generally speaking, the larger the loan you are going after, the more information you will need to provide.  If something doesn't fit from this list, pass it and go onto the next item.

Information About The Owner(s).  What is pertinent about your background that says you can run this business profitably?  THAT is what the banker needs to know.

Background On the Company.  Historical info if it is an established business.  Actually your business should never be "new".  Bankers hate "new". They want to see a track record of success, even if that success was only part time for a year or two.  And for goodness' sakes, do tell what the company does, with pictures if possible.  The people who ultimately review your request won't know diddly about you or your company.

Advisory Board.  The stronger your Advisory Board, the more impressed the banker will be.  The iffier your loan, the more important it is to create an Advisory Board in the first place.  There is no place in the SBA business plan template for an entity like an Advisory Board -- it will only show up here.

Clear Statement Of Use Of Funds.  "Working capital" just doesn't hack it.  Make it a strong statement of how you will use the loan to GROW the business. The form that the SBA provides does use the term "working capital", but be sure to itemize that much better in your actual business plan.

Financials -- Historical.  Three years is usually enough.  If the banker wants more, he will ask.  Or, if providing a longer history helps you, do so, perhaps in summary format.

Financials -- Projections.  You and I and the banker all know that "projections" don't really project a whole lot.  What these financials will do is demonstrate that you know how to use money effectively.  Get help from an accountant familiar with your field.

Marketing Plan -- How do you get clients?  Will that remain the same, or change?  Why?  The SBA loan form doesn't even mention this aspect of your business plan, but it is hugely important.

There are a number of attachments that would be useful t include with the SBA business plan template, such as

• Tax records for past few years
• Personal financial statement
• Copies of patents
• Press releases
• Significant employee agreements
• Significant third party agreements, including building lease and/or equipment lease
• Link to your website, perhaps with screen shots enclosed
• Link to your Face Book page, perhaps with screen shots enclosed.
• Anything that backs up what you say in the business plan itself.

Consider including a CD with this information -- it is less bulky.  Just stick it in a pocket at the back of the business plan.  Be sure all the docs are in pdf format so that anyone can read them.

Why All The Hassle Of A Business Plan?

The SBA business plan template doesn't ask for any of this.  But your bank needs it, and more, to make a solid, informed decision.  Since you want that solid, informed decision to be in your favor, make this presentation absolutely as strong as you possibly can.

Don't be at all surprised should your banker ask for additional information.  If he does, it is a very good sign:  He's interested!

While you're here, take a look at some of the other articles about writing a business plan.  One or more can probably help.  Check out the SBA section as well for more clues on how best to approach your lender.