Going through the U.S. Small Business Administration’s loan process can be a long, mind-numbing process of paperwork. Fortunately, there are ways to trim down the time — particularly for would-be franchise owners.
On the plus side, an SBA-backed loan could be an attractive option for young businesses and startups that don’t have a sustained history of financial performance, said Ron Box in the Journal of Accountancy. For a business needing to restructure debt, such a loan could offer a longer term — and therefore a lower monthly cost — over traditional bank loans.
But on the downside, an SBA loan requires more information than its commercial bank alternative, Box wrote.
The SBA process can also be time-consuming, California Bank & Trust Vice President Rachel Zippwald told the Journal of Accountancy. That bank also is an SBA lender. For planning purposes, applicants can request a time estimate from the SBA for consideration of the loan. Read full article.