Sunday, 22 July 2018

Information and commentary for the small business banking industry

SBA loans – an alternate financing option

27 Apr

Although you don’t want to have to say no to your small business customers, it could be that they just don’t meet your requirements for a business loan. But that doesn’t have to be the end of it. There is an alternative.

The US Small Business Administration is a government department aimed at helping small businesses. If you’re one of their approved lenders, you can steer your small business customers in their direction as an alternate source of finance.

As an SBA approved lender, you’ll be familiar with their application process… and you’ll know it’s no picnic. We’ve got some tips on how to help your small business customers navigate the dense thicket of SBA’s administration, so you can turn a negative situation into a win-win.

Preparation is crucial

You and the SBA will want to be confident that an applicant knows their business inside and out. A well-prepared application and a business owner who’s ready to answer all questions relating to their business is essential. So when your customers are preparing their application, encourage them to:

  • Check their credit rating – it’s important they’re aware of what it is, so they can iron out any defects or inaccuracies.
  • Documentation – a statement of their personal background, their business plan, resume, and financial statements such as income tax returns, bank statements, and their loan application history are all essential.
  • SBA forms – it depends on which loan program they’re applying for, but there are several forms that are necessary for all of them.
  • Their contribution – get them to list their assets and liabilities, experience in business, skills, and their income and living expenses, so that they can show how much they’ll be taking from their business to fund their personal commitments.

At the end of the day, it’s all about due diligence. The better prepared they are, the more streamlined this often difficult process will be. Remembering that the funds are coming from you, It’s a good idea to sit down with your small business customers and carefully go through their application to make sure they haven’t missed anything out.

Here at TSBC, we can offer you great content around helping your small business customers to increase their chances of success when applying for any of the SBA loan programs. Contact us on to find out how we can help you.


Glen Senior
Glen is the founder and CEO of The Small Business Company, a New Zealand based agency that specialises in helping banks communicate with small businesses through content marketing. He has written a number of books on small business principles and is a sought after consultant and conference presenter.

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