Get An SBA Loan, As Quickly As Possible
Filed Under Mortgage
For small business owners that are interested in purchasing a new property or are attempting to refinance their existing mortgage with an SBA loan, there are a few things you should consider to help expedite the process.
Get An SBA Loan, Rule Number 1 – Be Organized
To get an SBA loan closed quickly you must be organized. There is a specific protocol in terms of the documentation you have to provide. By putting together the required information, on the front end, you will dramatically shorten your time to close. In fact, one of the biggest time eaters is borrowers delay in getting the required information.
What exactly is normally requested? Here’s the main list, though other items are normally required depending on the individual and business:
- Resumes
- 3 years of business tax returns
- 3 years of personal tax returns on all borrowers with 20% or more ownership
- Personal Financial Statement on all borrowers with 20% or more (see attached)
- Business Debt Schedule
- Accounts Receivable & Accounts Payable Ageing Statements
- Year to date profit & loss and balance sheet on the business
- Application Forms
In addition, by having a preliminary package already assembled and ready to go you will impress the people involved and they will be that much more interested in working with you. Keep in mind, the people that really know what they are doing are very busy and will likely “pass” on loans if they believe the borrower will be difficult.
Get An SBA Loan, Rule Number 2 – Be Mentally Prepared
Be mentally prepared for “Brain Damage.” Often you will be required to provide information that you may feel is completely irrelevant and or that you have already provided. For the most part, you want to anticipate these frustrations and go along with the process. Rarely can you get out of providing a requested item. You have to “play ball” or your loan will be ignored. If they request something, get on it immediately.
Get An SBA Loan, Rule Number 3 – Work With a Professional
It is an obvious advantage to work with someone that specializes in an unfamiliar and complicated field. Do you file your own taxes? Do you treat yourself when sick or injured? Do you fight your own lawsuits? Of course not, you seek the advice and expertise of someone that is highly trained and experienced.
The same should be true when you’re seeking an SBA loan, which is also a complex and sometimes difficult transaction to complete. Your banker may be pleasant but he certainly does not have your best interests at heart. Also, you may have a perfectly good loan request, but by the way you present it, could hurt your cause. Or more common, you might be taking your loan to the wrong banks in the first place. In this market, many banks are still looking at loans, but hardly funding any… You need to avoid these banks. It’s your time and money on the line.
When working with any firm or commercial mortgage broker, make sure they have the track record and real experience though. Be careful with upfront fees as well. But besides these issues, hiring an SBA loan specialist is a no brainer. Get that SBA loan closed!
Jeff Rauth is President of Commercial Finance Advisors, Inc. They close SBA and other commercial real estate loans between $400,000 – $5,000,000 nationwide. Reach him at 248 885-8797 or at SBA 7a Loans or SBA Business Loan or SBA Lenders
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