4 Tips for a Successful SBA Loan Application

Small businesses are a crucial part of our economy. That’s why the U.S. Small Business Administration partners with lenders to help increase small business’ access to loans.

Zions Bank’s Eastern Idaho Region President Catherine Arik has seen a lot of loan applications in her banking career and understands the components of a successful SBA submission. Here she shares her top 4 tips for successfully applying for an SBA loan.*

SBA loan application tip #1: Ensure you have all necessary documentation

The first step to any loan application is gathering the required documents and information. The SBA loan application process is similar to other business loan applications, but there are some additional forms required by the federal government.

Be sure to have both personal and business information on hand to help prepare yourself for the application process. Some of the information you’ll need is:

“The federal government has to ensure that there is no one using taxpayer dollars that shouldn’t be, but, as for the application, it’s the same actual physical application that they have to complete for any other loans” Arik explains.

You can review a list of required SBA documentation on the Zions Bank website or visit with a banker at your local Zions Bank branch.

SBA loan application tip #2: Establish a clear business structure

Study the structure of more established businesses and use it to help inform how you present your business on your loan application.

Arik recalls one entrepreneur who had labeled their position as “Chief Entrepreneur” and the loan was rejected. The wording on the application made it appear that they were investing in the business and not running it, according to Arik.

“You’re going to need titles that are used across the board by other businesses of your type,” Arik says. “It’s important that people’s titles match the responsibilities they have and the organizational structure, whether that’s an LLC or a partnership.”

SBA loan application tip #3: Highlight your management experience

Management experience often means more than industry experience to a loan underwriter.For example, let’s say you want to open a dog grooming business. Even though you have little to no experience in dog grooming, you have more than 5 years of management experience and you’re going to manage the day-to-day operations rather than do the actual dog grooming. That management experience still makes your business a strong candidate for funding.

“Business owners need to show they know how to operate,” Arik says. “They need to know how to do the books. They should know how to set their prices and make a profit. And they should know how to hire people and fire people, if necessary.” 

SBA loan application tip #4: Keep it simple and do your homework

Refrain from using fancy language or intricate formatting. Bullet points are your best friends in an SBA loan application. It’s also important to have a clear business plan.

“It’s better to provide more information than less,” Arik says. “The business plan is really the nuts and bolts of your application. It’s also an opportunity to tell your story.”

Spend time researching your industry if you don’t have direct experience in it. Make sure you’ve thought about the various expenses you might have, and any that might change. Look at all the variables.

“Strong candidates for a successful SBA loan are the ones who have done their homework,” Arik says. “They’ve done their research. Their numbers make sense for their industry, and they present everything professionally.”

“SBA” is literally Zions Bank’s middle name — sandwiched between “Zions” and “Bank.” As a leader in small business lending in Idaho and Utah, Zions Bank’s team of relationship managers can help you find the right SBA loan for your business. Apply for an SBA loan online* anytime or visit a local Zions Bank branch to learn more.

*SBA loans subject to credit approval and SBA approval. Terms and conditions apply. See a banker for details.