Are you interested in business loans? If you’re operating a small business that has shown some growth, business loans in MI may help take it to the next step. Over 32% of small business loan applicants used online lenders to source their funding last year, according to Fundera. Here are some of the requirements for an SBA loan.
Business Type
What type of business do you operate? Before you apply for a SBA loan, you must prove that you have a for-profit business that is officially registered. This for-profit business should also be within certain industries. If you operate a gambling business, any business that deals with lending activities, or investment real estate, you’re automatically ineligible.
Need
For your loan, you must demonstrate that you have a particular need for it. You should be able to explain what that need is and what you’re using funding for. If you haven’t already done so, you should have a sound and updated business plan that you can present. You can’t use this loan to cover marketing costs, startup fees, or real estate investment in commercial property.
Location
There are many American companies operating from around the world. However, to qualify for your small business loans in MI, it must be physically located in the United States. You must also prove you’re conducting your business in the United States, or at least within its territory. Even if you’re an American but set up a business in another country, you can’t apply for an SBA.
Legal Standing
A criminal background can also affect your approval for an SBA loan, even if you meet other qualifications. If you’re defending yourself in a criminal case, currently in jail, or on probation, you’re not eligible based on the business character qualification. The SBA program can’t accept you if you have other government debt that you’re late or missing payments on.
A loan can be a great way to enhance your existing small business. Running a business can be a lot of work, especially if you’re only doing it on your own or with a small team. However, careful planning, being in the right location, and proving a solid need can increase your chances of getting a loan specifically for small businesses. To learn more about our SBA business loans in MI, contact MCDC for a consultation.