The Wall Street Journal recently ran an article that stated the 90% guarantee program currently in place will run out by the end of November or December. Since loans can take up to 120 days to be approved speed is of the essence.
Here are ways to speed up the process.
- Make sure your financial statements are up-to-date. Make sure the projections show you can pay everyone back.
- Write or update your business plan.
- Write or update your marketing plan.
- Use an SBA preferred lender even if they aren’t your current bank.
- Make sure the preferred lender works with your type of business. You don’t need educate the lender while time runs out. If you are just starting up the SBA will not guarantee a loan to you.
- Consider scenario planning and apply for loans with several banks.
- Bank’s want you to mitigate their risk. Consider making a higher down payment or, and this is not a favorite of mine, a personal guarantee.
- Consider tapping the advice of someone who is used to putting this type of loan application together. Find the local Small Business Development Center or SCORE office. If you are in Boston, MA or Providence, RI you can get help from the Center for Women & Enterprise (and yes men are welcome and even helped!).
Time is awasting if you want this type of loan. Hesitate and you will be back to 75-85% guarantee levels and having to pay fees.
