If you’re dreaming of starting your own business or growing the one you already have, you’ve probably heard about SBA loans. These loans, backed by the U.S. Small Business Administration, can be a great way to get the money you need to succeed. But before you apply, there’s something important you need: a business plan.
Let’s break down why a business plan is such a big deal when applying for an SBA loan and how it helps both you and the lender.
What Is an SBA Loan?
An SBA loan is money you borrow from a bank or lender that’s partially guaranteed by the U.S. government. That means if you can’t pay it back, the government covers part of the loss for the bank. This makes lenders more comfortable giving loans to small business owners.
The most common type is the SBA 7(a) loan, which you can use for almost anything: starting a new business, buying equipment, or even hiring employees.
What Is a Business Plan?
A business plan is like a roadmap. It shows how your business works, what you plan to do in the future, and how you’ll make money. It usually includes things like:
- What your business sells
- Who your customers are
- What your expenses and profits will be
- Who’s running the business
- How you plan to grow
Why Is a Business Plan So Important for an SBA Loan?
1. It Proves You’re Serious.
Lenders want to know you’ve thought things through. A solid business plan shows you’ve done your homework and that you’re ready to take this seriously.
2. It Shows How You’ll Pay the Loan Back.
Banks don’t want to give out money without knowing how they’ll get it back. Your business plan includes financial projections, like how much money you expect to earn, which helps them trust that you can repay the loan.
3. It Reduces Risk.
With the SBA backing part of the loan, banks still take on some risk. A business plan helps lower that risk because it outlines your strategy, your budget, and how you’ll deal with challenges.
4. It Helps YOU Too.
A business plan isn’t just for the bank. It helps you stay on track, spot problems early, and adjust your goals as needed. It’s your guide as you build and grow your company.
What Happens If You Don’t Have a Business Plan?
Without a business plan, getting an SBA loan becomes a lot harder. Lenders may not take your application seriously. Even if you’re great at what you do, they need to see your full picture on paper. It’s like trying to get a job without a resume. It just doesn’t work.
Need Help Creating Your SBA Business Plan?
Writing a business plan can feel overwhelming, but that’s where we come in.
At Legacy Business Plans, we specialize in building strong, professional SBA business plans that check all the boxes for lenders. Whether you’re applying for an SBA 7(a) loan or just getting started, we’ll help you present your ideas clearly, confidently, and with the numbers to back them up.
We’ve helped hundreds of entrepreneurs across the U.S. get funded, and we’re ready to help you too.
Let’s Get Started
If you’re ready to move forward with your SBA loan but need a powerful business plan to go with it, contact us today. Let’s turn your business idea into a reality with the right plan and the funding to match.
Book A Free Call
📞 786-991-2695
📧 contact@legacybusinessplans.com
