The Money Pros are standing by to take your questions.
Q. The Small Business Administration just finished its third highest year of lending to date, doling out $29 billion in loans to small businesses. What do I need to know about getting an SBA loan?
A. Access to capital can help small business owners manage cash flow today and prepare for opportunities tomorrow.The most important first step for a small business owner is to establish a relationship with a banker who can walk them through all kinds of lending option
There are many options for business owners to consider, including conventional bank financing and SBA loans.
The most important first step for a small business owner is to establish a relationship with a banker who can walk them through all kinds of lending options.
Before you walk into a bank, do some research online. The administration's website, sba.gov, is a great place to start.
The SBA has several programs offered through banks that may offer terms that might suit a business owner's needs.
These programs can be used to help business owners expand, purchase another business, manage cash flow and even buy buildings and equipment.
Business owners should prepare up-to-date, accurate financials, personal financial statements and tax returns.
Seek counsel from a CPA, local SBA office, an SBDC (Small Business Development Company), a CDC (Certified Development Company) or any local or state Economic Development Company.
And finally, it's critical to provide a business plan - especially for start-ups. The plan should be logical, defensible and detailed. It should include a budget, timeline and projected revenue numbers.
In the case of younger entities, profitability can be tough to measure or predict. That's why the business plan is critical to evaluate the timeline to achieve profitability. The key is for the owner to keep his or her banker apprised of all developments.
Robert Streb
Streb is vice president and specialty finance manager for Chase Business Banking. Chase has been ranked the country's No. 1 SBA lender for four consecutive years.
Do you have a question for the Money Pros? Send it to pfurman@nydailynews.com.
