Applying for an SBA 504 loan when starting or expanding your business is without a doubt a great financial decision. The popular program offers many benefits including low interest rates and competitive terms and down payment options.
The first step to put you on the pathway toward success is finding a well-respected Certified Development Company (CDC) like 504 Capital Corporation that helps connect small business owners with experienced lending officers.
Next, you will want to make sure you are prepared to present a thorough amount of information about your business before you apply for the SBA 504 small business loan. Things that will help increase your chances of being accepted include boosting your credit score, getting your finances in order, and never underestimating the importance of presenting a solid business plan.
What to Include In Your SBA 504 Loan Business Plan
While a business plan is not required when applying for an SBA 504 loan, it is an opportunity to show lenders why they should be comfortable providing your business with financial support. Chances are they will end up asking you to provide the same documents and information that would be included in a business plan, so it makes sense to take the initiative to put together a formal presentation.
Lenders want to know the applicant has thought through all the aspects of their business idea. The bottom line? You need to prove that you are worth the risk.
An impressive business plan should present a clear picture of why your business will be successful. It should look professional and include a cover sheet, table of contents and executive summary detailing your idea.
What other information should be a part of your business plan?
Project costs: In this section detail how much funding you are seeking (now and in the future), financial information for current operations (if you are expanding) and how you will use the funds. Be sure to be as detailed as possible.
Plans for growth: Lay out your financial plan for the future as well, especially in the first three years. You can include financial statements, a budget, historical data and sales forecast for your product or service.
Marketing and sales: Describe how you’ll attract and retain customers and your complete marketing and sales strategies. Ideas for this analysis are a marketing plan, sales goals, budgets and a training plan. Strive to identify competitors, how they could affect your business model and how you plan to beat them or stand out from the crowd.
Business background: This is an area to show off any business credentials you may already have. List your education, experience and prior projects that are relevant to your new venture.
Once you are confident you have developed a plan that is impossible to refuse, call 504 Capital at 757-623-2691 to get matched with a lender to review your application. Click to read more about all of the benefits of the SBA 504 loan.