You’ve decided there is no better time than now to put your business goals into action—you want to finally make that dream come true. To acquire the funds to turn that profitable idea into a reality, an SBA 504 loan is the best choice.
Interest rates are at all-time lows, and lenders are interested in backing small businesses that contribute to the economy and their local community. Applying for an SBA 504 loan seems like a no-brainer, but is there a chance you may not get approved? It’s normal to worry about whether your plan will move forward after so much time invested into the loan process.
So, what a few ways to ensure you secure an SBA 504 loan?
First, let’s take a look at some of the key SBA 504 features.
Why Is An SBA 504 loan the right choice?
Certified Development Companies like 504 Capital can guarantee our lending partners will offer very competitive interest rates. Other advantages include 25-year fixed terms and a mere 10% down payment requirement.
Yes, it makes sense to move forward. But before you start the application process, there are a few things to consider.
Follow these tips to get SBA 504 loan approval
Present a Solid Business Plan:-
Your business plan should present a clear picture of why your business will be successful, including a summary of the idea, how much funding you are seeking, project costs, plans for growth (especially in the first three years) and information about your business background.
Boost Your Credit Score:-
While an SBA 504 loan doesn’t have a minimum credit score requirement, it can be a factor in determining if you get approved. Credit history is definitely important. If you are worried about your score or have experienced bankruptcy in the past, make the effort to focus on ways to boost your score such as paying off debt, paying your bills on time, limiting applications for new lines of credit and disputing any inaccuracies on your report.
Get Your Finances In Order:-
Be prepared with all of the necessary paperwork the lender will look at when considering if you should be approved. You should be certain you have a personal financial statement, business income tax returns for the past three years (only if the loan is for expanding an existing business) and a balance sheet detailing the loan proceeds and use of the loan proceeds.
Other useful documents include a minimum of 2 years’ projections, an analysis of the financial statements with comments on any trends and a comparison with industry averages and details of the owners’ and managers’ relevant experience in the type of business.
Once you are confident you have all of your business in order, call 504 Capital at 757-623-2691 to get matched with a lender and receive that approval you’ve been longing for. Click to read more about all of the benefits of the SBA 504 loan.