Writing A Business Plan:
SBA Loans, the Top Source for 95% of 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.

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