What Should You Do to Get Approved for a 7a Loan?

Are you a small business owner or an entrepreneur? Have you ever heard of a 7A loan? The video gives some insight into the requirements for taking out Small Business Administration (SBA) 7a loans.

If you intend to buy another business, start a franchise, or start and grow your own business, you may be eligible for an SBA loan. The SBA is a section within the Department of Commerce that is dedicated to facilitating and funding small businesses in America. If you need more than $200,000 to buy or start a business, you should apply for such a loan.

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Some of the items you will need for your application to be successful include personal tax returns, 3 years of business tax returns from the company you want to acquire, a debt statement, a personal financial statement, a resume, and a business plan.

The SBA requires you to put down 10% of the loan you request. You must also have 20% post-closing liquidity, which consists of the cash reserves in your bank account. So, you must have, at a minimum, 30% cash on hand. However, you must be able to come up with this comfortably. You are unlikely to be approved if the amount required wipes you out. You now know how to get approved for a 7a loan.