Unsecured start up capital loan versus SBA loans

Getting an SBA loan is one of the hardest things to do when starting a new business. The SBA will require that you have a few items ready before you even get started. The first item you will need is a business plan. This can be anywhere from 5 to 200 pages that outlines how you will become a successful business. The length of the business plan will depend on the type of business you want to start and the location of where you want to start it. A highly competitive environment will require more documentation because the bank wants to know that the money that they are guaranteeing will be paid back. The second thing you will need is assets or collateral. The SBA wants to know that you have an interest in paying back the loan and the best way to guarantee this is if the you put up some of your own assets as collateral. If you don’t have any assets then you will never qualify for the loan. Some industries or sectors don’t qualify for an SBA loan because the government does not back all types of businesses. The only way to find out if you can qualify for an SBA loan based on your industry is to ask.