An Ohio small business loan backed by the Small Business Administration (SBA) can unlock your dreams of successful business ownership! Whether you’re looking to start a new venture, buy an existing company, or expand to a new location, an SBA loan offers attractive financing rates and terms to turn your entrepreneurial goals into a reality. The challenge, though, is knowing which SBA loan in Ohio is right for your small business when there are multiple SBA loan programs to choose from. If you’re not sure which Ohio SBA loan you should apply for, check out this three-step guide for an answer.
- Identify Your Ohio Small Business’s Financing Needs
Every small business owner aspires to run a profitable business. Often, owners underestimate the amount of money they need to operate their company. In fact, the most common reason small businesses close is a lack of funding. Smart small business owners know that having access to business financing is a critical element to business prosperity. SBA loans enable entrepreneurs to easily access capital they need to fund their business operations.
Before researching the SBA loan programs, you should first estimate your fixed costs and ongoing working capital needs. Then, you can figure out your business’s financing requirements and begin the process of narrowing down which Ohio SBA loan program is right for your company.
- Check If Your Ohio Business Qualifies For an SBA Loan
Banks want to feel confident that lending to your company is a sound business decision. Before meeting The SBA offers several funding programs to help Ohio small businesses grow and thrive. The most prevalent loan offerings are the SBA 504, 7(a), and Community Advantage programs. Each loan has a different purpose and has restrictions on how you can use the funds for your small business. The loan programs also have eligibility requirements that your business must meet in order to qualify. Determine if your Ohio company is eligible for an SBA loan by reviewing the eligibility guidelines for each loan program below.
504 General Loan Requirements:
Your business:
- Operates as a for-profit enterprise in the U.S.,
- Has a net worth no greater than $15 million, and
- Has, on average, an after-tax profit of less than $5 million
7(a) Loan Eligibility Guidelines
Your company:
- Operates as a for-profit in the U.S. and
- Is considered a small business by the SBA.
You:
- Have invested in alternative financing, including personal resources, prior to applying for assistance,
- Have invested equity in the business,
- Have a verifiable need for the loan, and
Your business type does not fall in any of these categories.
Community Advantage Loan Eligibility Requirements
Your company:
- Operates as a for-profit business in underserved markets, as defined by the SBA,
- Is operating in what’s considered a “risky” industry, and
- Is considered a small business by the SBA.
You:
- Have personal money and resources already invested in the business,
- Have exhausted traditional financing options, and
- Your business has a strong business plan and financial projections
3. Get Help With Your Ohio SBA Loan Application
Once you’ve chosen the SBA loan that you believe is the most suitable for your Ohio small business, the next step is to contact a Certified Development Company (CDC), like Growth Capital Corp. The 504, 7(a), and Community Advantage loan programs are offered exclusively through CDCs. The experts at Growth Capital will work with you to ensure you’ve picked the most appropriate SBA loan and will assist you with your Ohio SBA loan application so that you can secure the business financing you need. Get started today!