Have you ever been denied for an SBA loan? -

What reasons do they deny their startup loans? Im interested in the 7a loan, but want to know what reasons they may decline it.Thanks!

Hi Jay,Just like a bank can deny a loan for various reasons, the SBA Guarantee programs can have the same kinds of faults. And, it is the BANK that approves or denies the loan, not the SBA program.The SBA Guarantee simply allows the bank to broaden their loan criteria to allow them to loan money to a client who may not otherwise qualify. Personal credit history, and insufficient personal contribution are the two main reasons a bank denies a loan app under SBA guides. Oh, and a poor or incomplete business plan goes into the equation as well.The SBA and the Federal Govt are not fairy godmothers in the lending business. They make their decisions/allocations according to the reasons for having the programs in the first place, not to make your life easier. Check out www.business.gov, www.sba.gov, and www.score.org You will find tons of info on preparing plans and submissions under SBA guides. Planning is key. In order to plan effectively, you must conduct some research. What do you need to provide your services? Who will you provide them to? Who are you competing against? What makes you better; gives you an edge ? How are you going to reach your prospects/potential clients? Answering these kinds of questions gives you a basis to begin a business plan.You can download my free research outline at www.abusinessmentor.comIt should certainly guide you in the right direction.Good Luck!