First Bank of the Lake: Applying for an SBA Loan: 3 Tips

Starting your own business is a thrilling (not to mention a little nerve-wracking) process. Endless possibilities and opportunities lie ahead - all you have to do is go out and get them!

Of course, finding the funds to start your own business can be a little challenging. Fortunately, SBA loans are designed specifically for aspiring entrepreneurs who need a little boost to help them get started.

Preparing for an SBA Loan Application

If you are thinking about starting your own business at the Lake of the Ozarks, consider taking out an SBA loan from First Bank of the Lake. Here are a few tips to help you prepare.

1. Draft A Business Plan
If you plan to take out a loan, having a business plan will likely be non-negotiable. Your business plan will demonstrate to your lender how you to plan to handle various aspects of your business, from allocating your start-up costs to managing your cash flow (and everything in between). It could take some time to build a thorough and comprehensive business plan, so it may be wise to begin the process sooner than later.

2. Clean Up Your Credit Report
As a brand new business, your company won't have financial history for the lenders to review. As a result, they'll likely examine your own financial background instead. It may be worth taking the time to order a copy of your own credit report first, so you can examine it and identify any problem areas. If anything is reported incorrectly, fixing it before you officially submit your loan application may ward off unnecessary complications.

3. Think About Collateral

Clay Lindhorst
Vice President & SBA Loan Officer

Not all lenders will ask for collateral, but depending on your loan amount and the percentage you are able to put down, some may require it. As you organize your financial situation, examine your personal assets and determine what you are able/willing to offer as collateral. The type/value of collateral you can provide may impact the down payment required on your loan.

Advantages of an SBA Loan

SBA 7(a) loans offer several benefits that make them attractive options for small business owners:

1. Low Down Payments
The purpose of SBA loans is to provide much-needed funding to help new businesses get up and running. Consequently, SBA loans often offer loan down payment options to make them affordable to their target market.

2. Long Term Financing
Long-term financing options allow loans to be paid off gradually. This improves cash flow by keeping the monthly payments lower. In most cases, SBA loans are for fixed terms and will not have a balloon.

3. Several Different Loan Options
SBA loans are not "one-size-fits-all." In fact, there are several different types of these loans you can choose from. Your SBA lender at the Lake of the Ozarks will be able to help you determine which is best for your situation.

Contact Us for More Information on SBA Loans!

If you are in the process of starting your own business and would like more information about affordable SBA loan options at the Lake of the Ozarks, contact First Bank of the Lake. The Small Business Administration will guarantee part of the loan, but the funding will be provided by our community bank in Osage Beach MO.

With a dedicated SBA lending officer on staff, our local bank is an excellent resource for local entrepreneurs. For more information, visit our website or give us a call today!

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