Bank / SBA Business Plans
The roadmap to winning SBA loan approval
The SBA loan program, administered by the US Small Business
Administration (SBA), is widely regarded as the benchmark for small business financing.
A crucial component of the SBA business loan application process is the submission of a comprehensive business plan. Both the SBA and lenders are committed to ensuring the viability of your business before approving loan requests.
A well-crafted plan demonstrates the viability of your business and outlines how loan proceeds will be utilized to foster growth and advancement. If you’re in need of a strong and professional SBA business plan, look no further than Legacy Business Plans.
Our experienced team of writers, financial modelers, and market researchers can craft the perfect business plan for you.
What is an SBA
Business Plan?
A business plan is a comprehensive document that outlines a company’s concept, structure, strategy, goals, target market, and financial projections.
It serves as a roadmap, defining the mission statement and business model, and is essential for prospective investors, financiers, and buyers to understand the company’s value.
When it comes to SBA loans, an SBA business plan is often required for approval.
The Small Business Administration (SBA) provides guidance on the specific formatting for these plans, which typically adhere to industry best practices. There are three main types of plans to consider:
Startup business plan: The plan for a new company about to launch or that just launched.
Operational business plan: Usually, a year-over-year plan for established businesses outlining a company’s goals and growth projections.
Scenario-based business plan: An agile plan for companies in rapidly changing industries that may need to pivot their focus as they scale up.
Elements Of An Effective SBA
Business Plan
When drafting a plan for an SBA loan, it is crucial to incorporate various significant categories. Although primarily applicable to a startup business plan, these aspects can also be adapted for an operational business plan or scenario-based plan.
Executive Summary
The executive summary offers a concise yet comprehensive overview of your company.
This initial section should encompass your company’s essence and highlight the factors
contributing to its success.
Be sure to showcase your distinctive edge, unique selling proposition (USP), and mission or vision statement.
Company Description
This section will delve into the essence of what sets your company apart. It highlights your competitive advantages and the unique ingredients that contribute to your success. These advantages may include having a seasoned expert on your leadership team, occupying an ideal location, or introducing patented technology or intellectual property to the market.
Market Analysis
In this section, we conduct market and competitor research to showcase your target market. We elaborate on your competitors’ operations and successful strategies. Furthermore, this section will demonstrate how you can enhance or differentiate your approach to effectively compete in the market.
Organization and Management
The organization and management section provides an overview of your company’s legal and organizational structure. This includes determining whether the company will incorporate as a general or limited partnership, LLC, S-Corp, or C-Corp, as well as identifying the owners.
Service or Product Line
This section outlines the products or services you plan to offer, focusing on market demand and the benefits they will bring to your customers. It also mentions any plans for intellectual property rights, copyrights, or patent filings for your products or services.
Marketing and Sales
The marketing and sales plan should outline your strategy for attracting and retaining customers, as well as how you will handle sales. Across different industries, there are numerous marketing and sales strategies, and as your company grows, your plan may evolve.
Funding Request
If you are seeking funding for your business, this section becomes crucial. This section clearly states the amount you require, the projected duration of the funds, and how you intend to allocate the money.
Financial Projections
This section aims to demonstrate the viability and stability of your company, with the goal of persuading the reader that your company is or will be a success. For established businesses, it is important to include income statements, balance sheets, and cash flow statements from the previous three to five years. Both start-ups and established businesses should provide a prospective financial outlook for the next five years. New businesses should include quarterly projections for their first year.
Why You Need a Well-Structured
SBA Business Plan
A well-written SBA business plan is essential for more than just loan approval. It helps define your company’s direction, structure, and goals. Moreover, a solid business plan plays a key role in securing funds and attracting investors. A well-thought-out business plan for SBA loans will significantly improve your chances of obtaining the funding your business needs.
Properly formatting your SBA business plan according to SBA’s guidelines is pivotal to a successful loan application. If you’re looking to apply for an SBA loan, our expert team at Legacy Business Plans is here to assist with crafting a business plan that increases your chances of success.
Contact Us Today for Professional
SBA Business Plan Writing
Services
A professional SBA business plan is more than just a document; it’s your roadmap to success. Whether you’re applying for an SBA loan or seeking funds from investors, a well-organized business plan is the first step toward building a thriving business.
Contact Legacy Business Plans today to begin working with our expert team and get started on your SBA business plan. We help entrepreneurs across the U.S. create comprehensive, investor-ready plans tailored to their specific needs.
