If you’re considering a startup loan to help fund your business in Michigan, the Small Business Administration (SBA) offers various options that could be beneficial for you. One such program is the CDC/504 Loan Program, which provides long-term, fixed-rate financing of up to $5 million for major fixed assets that promote business growth and job creation, according to the SBA. Here’s a step-by-step guide on how to apply for an SBA loan in Michigan.
Step 1: Determine Your Eligibility
Before applying, you’ll need to find out if you qualify for an SBA loan. Eligibility requirements vary based on the specific loan program, but general criteria include your business’s size, financial health, and the type of project you plan to fund. Reviewing these requirements will help determine if you’re a good fit for the CDC/504 Loan Program.
Step 2: Speak With an MCDC Loan Officer
Once you determine your eligibility, contact an MCDC loan officer. Michigan’s top SBA lending partner, MCDC, will guide you through the loan process. A loan officer will ask you questions to understand your financing needs and send you a preliminary checklist of documents. This step typically takes two to four days.
Step 3: Provide Preliminary Checklist Information
The loan officer will review the preliminary checklist information and perform an analysis to determine the viability of the loan. This ensures that your application is set up for success. The process takes about one to two days.
Step 4: Receive Lender Referrals
If you do not have a lender, MCDC will provide referrals to lenders that suit your needs. This step can take 2-4 weeks, allowing time for credit analysis and approval.
Step 5: Underwriting and Approval
Once your application is approved by the lender, MCDC will begin the underwriting process, which takes 3-4 days. Afterward, the MCDC board will vote on your application, and if approved, your loan package will be submitted to the SBA.
Step 6: Appraisal and Environmental Review
The appraisal and environmental review stage involves MCDC, the lender, and the SBA, ensuring all requirements are met. This can take one to three weeks.
Step 7: Close and Fund Your Loan
The final step is to close the loan with your lender and receive the funds. Once your project is complete, you’ll close the MCDC loan within one to three weeks and receive your funding.
MCDC, Michigan’s number one SBA lending partner, is here to help make the startup loan process smooth and efficient. For personalized support and guidance, contact MCDC and take the first step toward growing your business today.