Borrowing Basics PLR Ebook

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Now you have read about the various aspects of the lending process and are ready to apply for a loan.

Banks and other private lending institutions, as well as the Small Business Administration, require a loan application on which you list certain information about your business.

For the purposes of explaining a loan application, this Aid uses the Small Business Administration's application for a loan (SBA Form 4 not included).

The SBA form is more detailed than most bank forms. The bank has the advantage of prior knowledge of the applicant and his or her activities.

Since the SBA does not have such knowledge, its form is more detailed. Moreover, the longer maturities of SBA loans ordinarily will necessitate more knowledge about the applicant.

Before you get to the point of filling out a loan application, you should have talked with an SBA representative, or perhaps your accountant or banker, to make sure that your business is eligible for an SBA loan.

Because of public policy, SBA cannot make certain types of loans. Nor can it make loans under certain conditions. For example, if you can get a loan on reasonable terms from a bank, SBA cannot lend you money.

The owner-manager is also not eligible for an SBA loan if he or she can get funds by selling assets which his or her company does not need in order to grow.

When the SBA representative gives you a loan application, you will notice that most of its sections ("Application for Loan"- SBA Form 4) are self-explanatory.

However, some applicants have trouble with certain sections because they do not know where to go to get the necessary information.

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