Can anyone lend some guidance on SBA loan requirements?

Max, developing a clear, concise, and compelling business plan is the most critical first step you can take. Everything else will flow from that. Any funding source, whether it's the SBA, a local SBDC, a bank, etc. is going to take a serious look at that document to see if you fully understand your business, it's risks and to determine if your financial projections make sense. Remember, every funding source is concerned with one thing and one thing only....How are they going to be repaid.

Your business plan needs to demonstrate that you have a truly viable product/service, you know your target market segments and they are real, your level of understanding of your markets and what those markets seek, that you understand the risks you face, and if you are realistic with your financial projections.

"Bottom Line" they want to be repaid in full and on time. You have to convince them. You do that through your business plan.

You must have enough cash flow to service the SBA debt--usually 1.2 times the annual debt (principal and interest) after you've paid all other salaries and expenses. After that I'd say your personal credit rating, followed by collateral. SBA loans cannot be denied solely because of lack collateral, but these days it helps to have as much as possible.

I have helped several companies get SBA loans. The key thing is to work with a bank that does SBA guaranteed loans. This bank will help you with the paperwork and they submit the application to the SBA regional office. Now, you will need to fulfill all the SBA requirements, including your own cash contribution, and have a credible business plan. I write business plans, so you can contact me if you wish. Clearly, they are looking for a high probability that you will be able to succeed, and pay off the loan. First comes people, then the opportunity, then the business context, and then all in terms of risk and return. These are concepts from a seminal article in Harvard Business Review by William Sahlman called Writing a Great Business Plan. But if the bank decides to send in the paperwork, you are on your way. Good luck, David Goodman, MBA, Ph.D.

I have helped several companies get SBA loans. The key thing is to work with a bank that does SBA guaranteed loans. This bank will help you with the paperwork and they submit the application to the SBA regional office. Now, you will need to fulfill all the SBA requirements, including your own cash contribution, and have a credible business plan. I write business plans, so you can contact me if you wish. Clearly, they are looking for a high probability that you will be able to succeed, and pay off the loan. First comes people, then the opportunity, then the business context, and then all in terms of risk and return. These are concepts from a seminal article in Harvard Business Review by William Sahlman called Writing a Great Business Plan. But if the bank decides to send in the paperwork, you are on your way. Good luck, David Goodman, MBA, Ph.D.