Sample Resume For An Sba Loan Essay

752 Words Dec 22nd, 2016 4 Pages
Owning and operating your own business is very much a part of the American Dream. Not everyone is qualified to live this dream but to help qualified buyers, the US Congress through the Small Business Administration (SBA) has put together a third party lending program. The SBA itself does not lend money direct to would be entrepreneurs, rather they allow qualified banks to manage and execute loan programs that meet criteria set by the SBA who will in return, underwrite a portion of the loan to lessen the risk of the banks. The rules are complex and change in reaction to the economy. However, a prospective borrower needs to put their best foot forward or their loan will not be successful. Here are 10 reasons your request for an SBA loan more than likely will be declined.

The SBA requires a Personal Financial Statement from each loan applicant and this document needs to show how much and where the down payment will come from to buy the business. The SBA program requires the buyer to make a capital injection to buy the business; they will not approve a zero down loan.

The SBA wants loans made to citizens with a clean criminal record. If you 've had a drink driving offense and it goes back a few years, they will require a full explanation of what happened so they can determine whether or not they will underwrite their portion of the loan.

SBA loans are for a business with a positive cash flow. With the loan application there needs to be a business model that shows the cash…

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