Small businesses often face grave challenges when looking for additional financing for their operations. In most cases, the available credit facilities carry high-interest rates or other unfriendly terms. Thankfully, qualifying for an SBA loan in Ogden lets you surmount this problem quickly.
These long-term, low-interest loans are accessible through the Small Business Administration. The SBA is an arm of the federal government that works accredited partners, usually local banks, to help small businesses access affordable loans. Here are some credible ways to increase your chances of qualifying for one:
Meet the Minimum Threshold
Like any conventional loan, your credit score is crucial to your qualification. Luckily, you don’t need an exceptionally high credit score to make the cut. Business owners with a score higher than 640 have a good shot at securing financing. However, the business must be at least two years old grossing at least $100,000 in annual revenue.
While the bar is relatively low, these loans carry a myriad of benefits. Depending on your financial strengths, the loan amount ranges from $500 to $5.5 million with an APR interest of as low 6.5 percent. The repayment period ranges from five to 25 years with ten years being the most common repayment period.
Demonstrate Great Business Skills
Due to the nature of the loans, the competition is often fierce. Hence, you need to satisfy all the requirements to stand a chance of success. Lenders gravitate toward borrowers who provide them with business plans that detail how you plan to spend the money.
You need to demonstrate that the money will help you grow your business. Such a strategy helps the lenders get a more in-depth look into your business operations. It can also persuade them that you are in a position to repay the loan.
Applying for an SBA loan gives you a rare opportunity to access cheap financing to grow your business. Therefore, you need to make every effort to meet the requirements and increase your chances of success.