Demystifying The SBA Loan Application – Crossing The Finish Line!

The most important step in the SBA loan application process is closing the loan. This is obvious, right? You would think so. However, many applicants make the mistake of focusing their attention on closing after it’s too late, and they’ve missed a critical step or piece of information that inevitably prevents them from closing the loan.

Crossing The Finish Line!

An SBA loan is considered closed after a loan number has been assigned by the bank and boarded to their loan management software, applicant and bank funds have been moved into escrow or a construction account, deeds of trust have been recorded and/or licenses obtained and escrow finally and formally notifies all parties its job is finished.

Unfortunately, many SBA loan applications never close. This is extremely frustrating for the applicant who has invested time, money and other precious resources with nothing to show for it. No new business, no new office building, no working capital. I know this because many applicants who are referred to me or find me on Google have personally experienced this frustration first hand.

Reasons for the loan application stalling out prior to close include inadequate bookkeeping and financial reporting, improper legal entity documentation and structure, applicant non-disclosure of prior adverse credit, criminal background or other malfeasance, insufficient asset value resulting from a real estate appraisal or business valuation, discovery of soil or water contamination from a Phase 1 environmental report, ineligible business applicant, individual guarantor or purchase contract, inability to obtain proper licenses and certifications and/or uncooperative and unreasonable partners, sellers, contractors or landlords and the list goes on.

SBA Loan Closing Done Right

The good news is there is a tried and true method to successfully close an SBA loan and avoid the frustration of watching your hopes and dreams disintegrate into thin air.

Are you ready? You must Identify and mitigate all obstacles and impediments, if possible, that will prevent the loan from closing, and this is key, you must do this prior to submitting the loan application.

You can attempt this on your own but let’s face it, you don’t have the time or desire to become an SBA expert. You can choose to work directly with a lender but you just never know if they’re the right fit for your specific loan request.

Hire An Expert

I recommend hiring an expert loan advisor and broker, like me Ryan Smith, who can help you structure the loan for success, in compliance with all SBA policies and procedures, from the very first conversation.

Following my tried and true method will give you the best opportunity to successfully close your SBA loan application and become the proud owner of a new business, office building or obtain that much needed working capital to grow or start your business.