SBA Loan Requirement with Regards to Business Plan
Your business plan has to include the following things.
- Explanation of your service, product, and value proposition.
- Your marketing or advertising strategy.
- Analysis of your business competitors
- Historical financial statements
- Three-year to five-year financial projections
- Terms of any current debt
- Loan proceeds’ use
Why is your business important and unique? Where do you picture it growing? While you may have faith in the eventual success of your business, you have to convince your lending company of its potential. What goes into your business plan will give your lender an idea about your business. Presenting it the best way is how you go about convincing that lender that you are worth the investment.
Another significant part of your plan is one concerning the use of business loan proceeds. Keep in mind that you should use the capital amount for a business purpose that is eligible and that the allowed range varies from loan to loan.