Getting Professionally Prequalified, Tips For Getting SBA Loans Approved
The most common question clients ask me about SBA loans and business purchase financing is how fast can we secure them funding to get their business purchase completed.
While there are many steps we (myself and the actual lender selected) must pass through from start to finish my answer is "it's all up to you."
This statement often catches people off guard but it is the absolute truth.
There are certain items you must have ready in order to start presenting "a transaction or deal" to potential lenders and financial institutions.
Your quest for SBA business acquisition financing will be much faster if you have the following items ready:
* Past 3 years personal tax returns for all owners with 20% or more ownership (Federal Returns only)
* Personal Financial Statement (for the buyer/borrower)
* For any other affiliate company with at least 20% ownership by an owner of applicant business you will need to provide the past 3 years corporate tax returns
* Work Resume(s) for the buyer(s)
* Signed Purchase Agreement (or Letter Of Intent)
* Brief write-up about the business - possible "mini" business plan (this varies lender to lender)
* Past 2 to 3 years corporate tax returns of the business you are purchasing
* Past 2 to 3 years P&L and Balance Sheet of the business you are purchasing
* Interim P&L and Balance Sheet of the business you are purchasing
A complete package is more likely to be put at the top of an underwriters pile whereas an incomplete package can drastically reduce your changes of funding altogether for your business (or business with real estate) purchase. Call me direct for the other 24 key factors for getting the best SBA loan rates and features as well which lenders are best for the various business types.
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