Commercial Real Estate
SBA Loan Program
Forbes.com is one of the most trusted information resources for the world's business leaders.
BusinessWeek is a global source of actionable insight for 4.7 million success-minded professionals.
Hoover’s delivers comprehensive company, industry, and market intelligence that drives business growth.
The leading source of information, intelligence and business content for managers, institutional investors and individual investors around the world.
The Wall Street Journal Online is the world's leading online business resource for reaching top leaders and investors worldwide.
Most Credit Impaired Applicants Helped...
No matter what type of loan you are applying for a SBA loan or a traditional bank loan, there are certain factors that improve your ability to obtain financing. The following is a simple checklist to do before you begin to seek capital.
Do you have a good personal credit history?Yes No
Research indicates that good personal credit history is one of the most important factors in identifying borrowers that will repay their commercial loans. Many loan programs require perfect personal credit in order to qualify.
Have you filed all Income Tax Returns? Yes No
Lenders and government loan programs alike want to see that an individual has met their tax obligations for both filing and paying taxes. For SBA loans tax verification is obtained from the IRS before a loan is closed.
Are your Income Taxes paid? Yes No
Many of the loan programs are in partnership with government agencies. These loan programs do not look favorably on individuals who have unpaid income taxes.
Does the business have the ability to repay the loan? Yes No
(For existing businesses) If the business is profitable, then there are demonstrated profits to repay some amount of new debt. If a business is not profitable, then it becomes very important to prove how it will be profitable in the near future so that a loan can be repaid.
(For start-up businesses) It is very important that you find as many data on comparable businesses or industry statistics in order to "prove' the revenues you intend to generate and the expenses you anticipate incurring.
Does your business have a positive net worth? Yes No
(For existing businesses) The net worth of the business should be positive. If there are loans from shareholders on the balance sheet and you are able to subordinate these (not pay the shareholders) while you pay the bank loan back, you may consider these loans from shareholders as equity.
Is your business not carrying too much debt? Yes No
(For existing businesses) Businesses that have too much debt will find that their profits are directed at paying back loans and not building retained earnings in the business that can fund future growth. Consequently, banks and government loan programs look more favorably at loan requests that do not add too much debt to the business. Banks often look for a debt to net worth ratio of 4 or less (total liabilities divided by equity).
Do you have enough of your own money in the business? Yes No
(For start-up businesses) All loan programs require that the business owner put their own money in the business. This owner equity injection shows that the owner believes in the business enough to risk their own money. Few programs require only 10% owner equity, other programs require at least 30% and will look more favorably on a loan request the more equity is in the business.
Do you have collateral to secure a business loan? Yes No
Business and personal assets can be considered collateral, or a way to repay the loan if the business defaults on a loan. Most collateral is valued at an amount less than face value based on a variety of factors.
Are you willing to personally guarantee a loan? Yes No
Most business owners are asked for a personal guarantee in order to obtain their first business loans.
Does your business have qualified managers and advisors? Yes No
(For existing businesses) As businesses expand, they need more sophisticated management, as it relates to strategic planning, marketing, recordkeeping, inventory control, personnel, etc. When you apply for a loan, your banker will consider the qualifications of your management team and advisors in order to determine if they are capable of leading your business to the next level of growth.
Do you have experience in running your own business? Yes No
(For start-up businesses) For a new business especially, it is important for the business owner to demonstrate that she has experience in the industry and/or entrepreneurial experience
STOP! If you cannot answer Yes to all the questions above, then you may have difficulties obtaining financing at this time. We suggest that you evaluate the needs of your business and take advantage of calling BRT Financial for assistance.
Contact BRT Financial The SBA Loan Packaging Professionals Today about the SBA Loan Programs and other Services.