SBA
Small Business Plans
Top SBA small
business plans give the Small Business Administration even more than it asks
for. These plans give the SBA a reason for
lending.
Your
Business Plan for the SBA
The business plan for an SBA loan
must contain all the elements of a typical business plan: industry analysis,
biographical information, financials, etc.
The challenge in a business plan
for an SBA loan is that it requires close attention to the specific program that
you are applying for. For instance, a loan focusing on seasonal funding
requirements (such as "back to school") must specify that need on the
very first page of your SBA small business plan, and reflect the timing of that specific expenditure in the
financial information. The industry analysis and company history should also
highlight that particular aspect of the company.
A long term loan must demonstrate
clearly how the funding will provide the financing for the specific items
needed, and how profits will be generated to repay the loan. It must be
clearly itemized in your SBA small business plan.
An SBA small business plan for a
defense-related product will be very different that a business plan for short
term asset based loan.
Know what you are asking for --
and why.
Then provide the information that
allows the lender to say Yes.
Locating
Your SBA Lender
Not all banks are the same. Far
from it. Each 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. Ask the same questions. And keep on listening.
When you locate an SBA lender that
is looking for your type of company, 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 loans are more readily
available now than they have been for quite some time. Literally thousands of
businesses will capture SBA 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.
.
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