Make sure you don’t make these when applying for an SBA Loan. As a bonus, listen to 42 year SBA veteran Allen Herman elaborate on the 10 biggest mistakes.
- Credit Score atleast 650 – 675
- Incomplete personal financial information
- Insufficient business financial and operating statements
- Don’t obtain current personal and business credit reports
- Business financial statements must be less than 60 days old and for three years
- Personal and business Federal Income Tax returns must be current for the following: Income tax returns must be for the last three years
- Incomplete explanation of business history and growth of business. Make sure it is complete. Include growth history and pattern of business.
- Provide personal résumés of all principals of business, not just the primary.
- Most wait until all paperwork is complete, best to meet at an early date with lender and discuss business proposal. This saves unnecessary paperwork and time.
- Make sure this is discussed upfront: will the borrower have 20-30% of down payment at proposed purchase price. Discuss where the proposed funds will be derived from. Not getting this in the beginning, causes time and energy spent for a negative result.
