HOW TO GET AN SBA LOAN

One of the most important sources for small business financing is the US Government’s Small Business Administration (SBA). The SBA provides short- and long-term loans to eligible, credit-worthy startups and existing small businesses that cannot obtain financing on reasonable terms through normal lending channels.
Note, however, that the SBA does not provide direct loans. Rather, the agency provides guarantees to loans available through the SBA's partner lending institutions, which include many community banks.
The SBA provides loan programs for most business purchases, inducting purchasing real estate, machineries and equipment, inventory, and working capital.

To be eligible for an SBA loan, the borrower must meet 3 criteria:

1. A strong business plan. Like banks and other financial institutions, the SBA requires the submission of a business plan to see that the entrepreneur possesses 3 clever understanding of the business they're in, have taken steps to research the market, and studied the prospects of the business. The SBA wants to see detailed plans on how the business can make money and repay the loan.

2. A good personal credit rating. Credit history serves as a gauge to a person's credit worthiness. The borrower's track record in paying their bills is an important component in the loan application process. The SBA partner banks, which provide the actual funding, conduct a credit examination of the borrower, and then submit the results to the SBA.

3. The borrower must have a stake in the business. The SBA wants to see those applying for credit to have a personal investment in their business. In the SBA’s view, business owners who have put their own money into the venture are much more likely to push hard for the success of their business. The SBA will require the borrower to contribute at least 25% of the loan amount from his or her personal liquid assets.
You can get this 25% portion from your 401 (k) or IRA account, in cash, without paying any taxes or penalties, by transferring these qualified funds Into a PENSION TRANSFER TRUST.