Somerville National Bank believes that it is our responsibility to provide comprehensive information to our current and future clients that will aid in their financial needs and affairs. In this series, we will be providing detailed information about Small Business Loans, which are commonly referred to as “SBA Loans” for short. Our bank is a regional bank that currently has seven different locations in the State of Indiana and the State of Ohio. We strive to ensure that we meet each of our client’s needs. If, for some reason, our branch locations are unable to assist you with a Small Business Loan, we will make certain that we connect you to the resources that you need; however, to date, we have been able to successfully aid thousands of clients with their needs. We hope to aid you with your needs. In the first installment of this series, we will provide you with the basics pertaining to SBA Loans.
SBA Loans – At a Glance
SBA Loans are provided by the Small Business Administration, which is a federal agency whose purpose and intent is to aid entrepreneurs to start their businesses, improve their businesses, and gain access to contracting opportunities that will aid with a business. Many mistakenly believe that the Small Business Administration actually lends the loans to the businesses that seek the funds; however, this is not true. The federal agency provides the funds to a bank and other type of lending institution. Financial institutions are the ones that are backed by the incentives that make it possible to provide funding to small businesses.
Obtaining a SBA Loan
In some instances, it is easy to obtain a SBA Loan. In other instances, it may prove to be a long and tedious process. Often, there will be strict credit criteria associated with obtaining a SBA Loan; however, many banks and other types of financial institutions may forego the strict requirements for the purpose and intent of assisting the applicant. It is common, though, for lenders to want to review your credit, financial statements, and determine if you have collateral. The loan application process is going to be quite extensive. Not only will you be required to provide comprehensive financial information, but, you will also have to provide a description of the business that you have, information on how you will use the loan that you are desiring to obtain, a business plan, and a detailed outline of what steps you will be required to take in order to successfully repay the loan.
Thank you for reading Part 1 of our series, “SBA Loans – A Comprehensive Guide for Somerville National Bank’s Current and Future Clients”. Here, you have learned what SBA Loans are and what it takes to obtain such a loan. You have also learned that while these loans are from the federal Small Business Administration, they are typically obtained from a bank or similar type of financial institution. Remember to bookmark us and visit next week as we continue this series. For more information on what Somerville National Bank has to offer, visit us today at: https://somervillebank.net/