Steps entrepreneurs should take when navigating the lending process

Over the years, one of the most asked questions I get from entrepreneurs is what grants are available for new businesses and how do I get a business loan. Securing business capital can be frustrating and defeating for many individuals that have had the dream of turning their unique idea into a new small business. Grants are mostly non-existent for most startups unless your local community organizations or government agencies offer financial incentives. To help reduce barriers for startups, the U.S. Small Business Administration (SBA) recently launched its new working capital line of credit to better meet the needs of our small business customers. 

The agency’s Working Capital Pilot works through existing SBA 7(a) lenders using an innovative structure to give business owners and lenders more affordable loan options and flexibility.  These enhancements include transaction-based loans to help businesses fund individual projects and/or orders earlier in the sales cycle.  The pilot also provides asset-based loans to help business owners borrow against existing assets for specific purposes such as export related sales, and the Home Energy Rebate program which was funded by the Inflation Reduction Act. 

Even with this new pilot program, experienced business owners know they need to set financial goals to keep their company on track. The following are five simple steps entrepreneurs can take to help navigate the lending process.