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The Small Business Administration, state and local economic development agencies, and many nonprofit organizations provide low-interest loans to small businesses that may not qualify for traditional bank loans.
1. Loan application
The questions will vary, but be prepared to answer the basics:
- Why are you applying for this loan?
- How will the loan proceeds be used?
- What assets need to be purchased, and who are your suppliers?
- What other business debt do you have, and who are your creditors?
- Who are the members of your management team?
Read about how to write a plan and the essential ingredients that should go into it. Need help? Take a seminar or talk to a business counselor if you need help writing your business plan.
3. Resume
Some lenders may require previous management or business experience, especially for loans that will be used to start a new business.
Your public library and area community colleges, such as Johnson County Community College or Metropolitan Community College, can offer assistance.
Also check with:
4. Personal credit report
Your lender will obtain your credit report as part of the application process. But it’s wise to get your hands on your credit report first. Obtain your personal credit report from all three consumer credit rating agencies and clear up any issues before you submit your loan application.
5. Income tax return
Most lenders request personal and business income tax returns for the previous three years.
6. Financial statements
Your lender will request financial statements as part of, or separate from, your business plan. The following forms are the most requested:
- a balance sheet: the financial position of a business at a specific point in time
- income statement: revenues minus expenses and the net income/loss before taxes
- cash flow statement: the detail of cash received and cash expended for each month of the year
- accounts receivable and accounts payable: your most current financial position
7. Bank statements
Many lenders will require one year of personal and business bank statements.
8.Collateral
Collateral is an additional form of security to show a lender that you have a second source for loan repayment.
Collateral requirements will vary greatly and with a strong business plan and financial statements, some lenders may not require a collateral statement. The Small Business Administration , however, will require a collateral statement.
Regardless, it’s best to prepare a collateral statement that describes the personal or business property that will be used to secure the loan.
Applying for an SBA loan?
Follow this SBA loan checklist.
Kansas
Missouri
Get more details on funding sources and loan programs available in Kansas City from our Resource Library.
- Citywide Development Corporation
Program: Revolving Loan Fund
- Clay County Economic Development Council
Programs: SBA 504 Loan Program, Revolving Loan Fund
- EDC Loan Corporation
Programs: Revolving Loan Fund (RLF), River Market Loan Fund (RMLF), Neighborhood Commercial Revolving Loan Fund (NCRLF), 504 Loans, and Small Business Loan Fund (SBLF).
- Heartland Business Capital
Programs: 504 Loans, 7(a) Loans
- Hispanic Economic Development Corporation
Program: Nonprofit Loan Fund
- Midwest Small Business Finance
Program: Revolving Loan Fund, 504 Loans
- Mo-Kan Development, Inc
Program: Revolving Loan Fund, 504 Loans
- RMI (Resources for Missouri, Inc.)
Programs: Microloan, 504 Loans, IRP (Intermediary Relending Program), RBEL (Rural Business Enterprise Loan)
- Small Business Administration
Programs: Microloan, 504 Loans, 7(a) Loans
- South Central Kansas Economic Development District
Programs: SBA Microloan, 504 Loans, Intermediary Relending Program (RD), Business & Industry (Rural Development), Revolving Loan Fund (RLF)
- Wakarusa Valley Development
Programs: 504 Loans, 7(a) Loans
Cast a wider net: find business loans, grants, and financing for your small business.
Heartland Business Capital helps small business owners complete loan packages, review historic and/or projected performance of the business, and establish feasible financing alternatives.
Who: Hispanic business owners
HCC’s programming ranges from business planning, advertising, sales and marketing, procurement, certification processes, and loan preparation.
Kansas City, Missouri Small Business Division, 816-516-6817
Small Business Development Centers (SBDCs and SBTDCs) help established companies and start-ups meet the challenges of today’s marketplace, including preparing loan documents. Their branch locations across the state offer easily accessible classes and counseling.
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