How do you qualify for a Small Business loan?
Wednesday, September 1st, 2010 at
11:13 pm
I am seeing that you can borrow up to 600K for a SBA loan. Why couldn’t you apply that toward the purchase of a house to run your business out of? Whats the deal with small business loans?
Tagged with: Business • Loan • qualify • Small
Filed under: Small Business Loans
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Because then you would be borrowing for a personal house, not a business loan. Business loans have to go toward the establishment and operation of a business, not to pay for a residence.
In order to get the loan, you would need to put up a decent amount of capital, write a business plan showing how the money will be spent, how you intend to pay it back, the demographics of the target audience for your business, etc.
Whether you are applying for an SBA loan or a traditional bank loan, there are certain factors that improve your ability to obtain financing. This self-test is designed to assist you in understanding important issues that lenders consider when making a decision on a small business loan.