During these tough economic times, many business owners are asking themselves if now is the right time to approach a lender. As a result of the American Recovery and Reinvestment Act of 2009, it may very well be the right opportunity for small businesses. Before heading to your local financial institution for more information, however, you might want to check out some of the following information to see if your business fits the criteria for a small business loan.
Obtaining money when you need it is as necessary to the operation of your business as a good location or an adequate labor force. Before a bank will lend you money, the loan officer must feel satisfied with the answers to several questions based on character, your credit, your ability to repay the loan, the clarity of your financial plan, the economic outlook for your business and industry, the purpose of the loan, and what type of collateral you possess to secure the loan.
If you feel that you are in a good position to obtain a loan, sit down with a loan officer and have a conversation about what type of loan is right for your business. A good rule of thumb is to start with the bank where you currently have your accounts. Your local Small Business Development Center (SBDC) can help you determine your financial needs by assisting you with the preparation of a written business plan that includes cash flow spreadsheets, financial projections, sources and uses of funds, and more. Most lenders require these items as part of a complete loan package.
The SBDC Counselors are here to make this process go smoothly and help you procure the right funding for your small business and your current situation. In Tulare and Kings Counties, please call our office in Visalia at (559) 625-3051, or in Fresno and Madera Counties at (559) 230-4056.