Small Business Financing
Business Growth Specialist/Finance Expertise
Our specialists have extensive experience in accounting and banking. Their expertise will benefit you in many ways:
- Ensure financial records are accurate
- Prepare loan packages for submission to banks
- Compare financials to industry benchmarks identifying areas of improvement
- Use financials as a tool to manage the business
- Develop “what-if” scenarios for financial impact on the business for new initiatives or ROI
- Complete annual budgeting
- Implement cash management
- Leverage lending relationships
How will you fund your business? What are the collateral requirements? How can you use the funds?
We’re here to help you better understand the range of financing options for potential entrepreneurs and existing entrepreneurs. No one method is recommended over any other—each has risks, costs, and benefits. Weigh each option against your own situation.
Getting to Yes!: The MI-SBDC is a partner in the SBA’s Getting to Yes! program. In as little as 7-8 weeks, this challenging fast-track program will help you to complete your loan package and submit it to a variety of lenders of your choice.
Common requirements to secure financing include the following:
- Purpose of the loan
- History of the business
- Financial statements for three years (existing businesses)
- Schedule of term debts (existing businesses)
- Aging of accounts receivable and payable (existing businesses)
- Projected opening-day balance sheet (new ventures)
- Lease details
- Amount of investment in the business by the owner(s)
- Projections of income, expenses, and cash flow
- Signed personal financial statements
- Personal resume(s)
- Business plan
- Copies of last two years personal tax returns (new ventures)
- Copies of last two years business tax returns (existing businesses)
(Checklist courtesy of SBA Michigan District Office with modifications by MI-SBDC)
If you are getting ready for a loan, review the SBDC Application Checklist and talk with your local SBDC office for assistance.
Grant monies are usually not available for new venture businesses, with a few exceptions for high technology businesses. You may find grant information at your local library or online: www.cfda.gov or www.grants.gov
Additional grant Information on SBA’s website:
If you’re planning to start a business or expand an existing business, you might need financing help. SBA participates in a number of loan programs designed for business owners who may have trouble qualifying for a traditional bank loan.
To start the process, you should visit a local bank or lending institution that participates in SBA programs. SBA loan applications are structured to meet SBA requirements, so that the loan is eligible for an SBA guarantee. This guarantee represents the portion of the loan that SBA will repay to the lender if you default on your loan payments.
The SBA Loan Application Checklist provides a listing of forms and documents you and your lender will need to create a loan package to submit to SBA.
This document provides you with direct links to information about commonly requested SBA programs. SBA Loans Document for Website