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When to Add a Personal Guarantor to a Small Business Loan Application

When to Add a Personal Guarantor to a Small Business Loan Application

  • Posted: Mar 17, 2016
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Whenever I explain the SBA and small business loan application process, I like to remind listeners that: (a) every small business loan application is evaluated according to five basic criteria, and (b) each loan application exhibits strengths and weaknesses which must be evaluated in the underwriting and loan approval process. The five criteria being evaluated include:  
(1) Personal investment by the loan applicant compared to the amount of debt being requested,
(2) Cash flow and repayment ability of the applicant for the proposed loan amount,
(3) Business ownership and management credentials of the applicant,
(4) Credit history of the applicant with other lenders, and
(5) Collateral offered for the loan in case of inability to continue making payments on the loan.
A good reason for a small business owner to think he can find a compatible lender would be if all five criteria have strong characteristics which can be documented by the lender.  

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Basic Financial Projections Required for an SBA Loan.   By: Bruce Hurta

Basic Financial Projections Required for an SBA Loan. By: Bruce Hurta

  • Posted: Jan 25, 2016
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Basic Financial Projections Required for an SBA Loan

Whether a business is approaching an SBA government-guaranteed lender for a startup business loan, or whether the business is already established and operating, most SBA lenders want to see basic income and expense projections from the business applying for the loan.

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