Before you start filling in your loan application, the Los Angeles Times has some advice you may want to consider.
So, what's the best way to get a small-business loan in this economic environment?
Business owners who have scored loans said one of the keys was preparation. Expect to explain and justify every aspect of your business. The days of just slapping down a three-year growth projection, real estate appraisal and down payment are long gone.
And don't be surprised by requests for additional data. Banks and other lenders will often ask for application revisions and additional information.
That was the case with Barbara and Greg Gerovac of Anaheim. Before the couple received a $470,000 SBA loan to open Anaheim Brewery â€” their wholesale business with a retail tasting room â€” the couple had to rewrite sections of their business plan.
"They looked at the construction bids and, same thing, came back and said, 'You know, I think there are some equipment costs you can get some more solid numbers on,'" Barbara Gerovac said.
To figure out the more detailed numbers that the bank required on their income statement, they took advantage of a free consultation offered by the SCORE Assn., a nonprofit that mentors small businesses.
Photo by Social Woodlands