HOW DOES A BUSINESS APPLY FOR A SMALL BUSINESS ADMINISTRATION DIRECT OR GUARANTEED LOAN?
To apply for a guaranteed loan, applicants should take all available financial and other business information to a financial institution, preferably their bank of account. The information should include a written statement describing the business and its history, the proposed use of the loan proceeds and an explanation of how the loan will be repaid. Applicants should always request that their lender make the loan directly. If the lender is unable or unwilling to make the loan, the applicant should request that the lender consider making the loan under the SBA Guaranty Program. If the lender agrees to participate with the SBA, the applicant will then complete a formal application for forwarding to the SBA. If the lender is not willing to participate, the applicant can then apply for a direct loan from the SBA only if s(he) falls into one of the specified categories of special loan programs discussed above and only if funding is available. In the case of guaranteed loans, SBA generally
