Navigating the SBA 504 loan process can be straightforward if you know the key steps. Here’s a quick guide to help you through:
1. Eligibility Check: Determine if your business qualifies for an SBA 504 loan. Generally, your business must operate for profit, meet the SBA size standards, and have a tangible net worth of less than $20 million and an average net income of less than $6.5 million after federal income taxes for the preceding two years.
2. Find a CDC: Certified Development Companies (CDCs) are non-profit organizations that work with the SBA and private-sector lenders to provide financing. Locate a CDC in your area. Small Business Capital Corporation (SBCC) is the premier CDC in Oklahoma to assist with your application.
3. Pre-Application and Initial Consultation: Schedule a meeting with SBCC to discuss your project and confirm it fits within program guidelines. SBCC will guide you through the required documentation and information for the application.
4. Application Submission: Prepare and submit the necessary application forms and supporting documents to SBCC. This typically includes a business plan, financial statements, and project details.
5. Credit Review and Approval: SBCC will review your application and submit it to the SBA for approval, involving a thorough credit analysis to ensure the loan meets SBA requirements.
6. Approval and Commitment Letter: If approved, you will receive a document outlining the loan terms and conditions. This document will also specify any additional information or documentation needed before closing.
7. Closing and Funding: Once all requirements are met and documentation is complete, the loan will close, and funds will be distributed.
By following these steps, you can streamline the SBA 504 loan process and secure the needed funding to grow your business.
Kommentare