Character cannot
be developed in ease and quiet. Only through experience of trial and
suffering can the soul be strengthened, ambition inspired, and
success achieved.
Helen Keller,
Activist for the Blind
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Writing A
Business Plan:
SBA
Loans -- The Best Funding Source For Over 95% of All US Businesses
SBA loans
provide more financing for small businesses in the U.S. than any other
single source. Finding the lender that is right for you, however, can
be challenging.
First Get An Idea of What Type of Loan or Assistance You Want
You think there isn't any money available?
Well, think again. Here is one of the best sources for finding financing
programs:
Surprised? So are most people, even
experienced entrepreneurs. For our purposes here, let's focus on the SBA
loan options since those are the most popular.
Locating
Your SBA Lender
Not all loans guaranteed by the
SBA are the same,
and not all SBA lenders are the same. Far
from it. Each bank seems to develop its own personality. Some take particular pride
in serving the local business market; others brag about international
connections; others have long histories in particular industries.
The most powerful thing you can do
in preparing your business plan is to first meet briefly with your local banker,
explain what you are doing, and ask what the bank is looking for. Listen
carefully.
The banker will tell you whether
they are looking for business plans with strong assets, or longevity, or
potential for local growth, or small businesses that will employ many local
workers in particular industries.
It is possible that the SBA bank
is looking for something your small business cannot provide, such as companies
that employ 100 or more workers. If that should occur, go to a different SBA
lender. Your SBA guaranteed loan is there -- you just need to find it. Ask the same questions. And keep on listening.
SBA Preferred Lenders
These are banks and other
lending institutions that have been pre-approved by the SBA to provide SBA
loans rapidly. For a 25-page listing of
SBA Approved Lenders , click on the link. Scan the list for those
banks, credit unions and other institutions in your geographical area.
Then go visit two or three of them of them.
Getting a
Referral from a Lender for Your SBA Loan
One question that is crucial
in locating your SBA backed loan is: Ms. Banker, can you recommend another bank
that might be more appropriate? This is a very valid question. Bankers realize, too, that they cannot be everything to everyone, and most
are very pleased to give referrals.
Then, when you go to Bank #2,
start out with, "Ms. Banker at General Bank at the Corner suggested I
talk with you." It's a slam dunk referral. And it's very
legitimate.
When you locate a lender that
is looking for your type of SBA financing, listen even more carefully. Find the key
that will put this banker in your corner. Then write a business plan that will
give him what he is looking for.
SBA financing is more readily
available now than it has been for quite some time. Literally thousands of
businesses will capture SBA backed loans this year -- yours could be one of them.
Many companies fit comfortably
into SBA qualifications. Yours may not. If angel
investors or venture
capital investors suit your company better, structure your business plan to
fit those demands.
Locating the SBA Nearest to
You
Your best bet is to check your local phone
book, perhaps under "U.S. Government" in the front pages. Then
call for an appointment. Although
there will usually be someone in the office who can answer your questions, your
best bet for a solid 30-45 minute one-on-one conversation is to make an appointment.
Call and set a time. Jot down the list of questions you have, and take
lots of notes during the conversation.
