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SBA Business Loan for Start ups | USGEA

The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of nation.
The SBA helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States
Here are few tips to help a startup get a SBA loan.

Showcase experience:
A start up financing project has a higher chance of being funded if the entrepreneur can market their experience in the prospective industry. A person working in health care, who wants to start a business buying medical diagnostic centers, will have a higher chance of getting funded than if they were to try setting up a food franchise business. This reduces operational management risk in selecting a team that has the right kind of experience and expertise to grow the business. Banks prefer to give start up business loans to people who have prior experience.

Strike a bargain:

In a startup, revenue is heart of the business. The entrepreneurs should follow this as a core mantra and scrutinize every cost item. Prior experience can help out with the vendor selection stage, and eliminate the trial and error. Getting a great deal on rental space, or a discount from a supplier, reduces projected expenses, increasing debt servicing ratios and makes banks feel confident about your ability to pay back the loan.

Appoint a good lawyer & accountant:

Appointing a good account & lawyer is important for a startup. It helps to provide sound legal and financial advice from industry experts who have worked with small businesses before. Banks require personal financial information and an accountant who is organized and quick to respond can really reduce the time lag in the financing procurement stage.

Rollover IRA, 401K or other retirement savings:
This helps the business to avoid the tax liability as well as escape the ravages of falling stock and real estate market. Besides this, a larger project contribution or collateral coverage can provide leverage to negotiate better terms with the prospective financier.

Highlighting and building key partnerships:
Establishing meaningful partnerships can help startups enter new markets and build a client pipeline without spending much on marketing or public relations. For example, a food franchisee should look to spread the word in the neighborhood to cater for local events, parties and religious festivities. Getting involved with associations and community events can help businesses showcase their services or products while creating a friendly rapport with the local community. Partnerships can be marketed to banks as potential future contracts and business.

These simple steps can go a long way in securing a SBA loan for your startup.

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