Starting a small business requires dedication and, often, taking out a loan. A loan can be a practical step for those seeking growth. Taking out a loan can allow small business owners to tackle challenges like cash flow gaps, space constraints, or inventory needs.
Why apply for a loan?
A loan can be a powerful tool for small businesses when used strategically. Loans are versatile and can be used for equipment, working capital, or real estate. A loan can provide the financial support to meet your business’s needs and continue growing.
Preparing to apply for a loan
Before applying, ensure you have key documents ready, including financial records, collateral information, and a clear plan for the loan’s intended use. Having these in place demonstrates your readiness and credibility as a borrower. Generally, you’ll need:
Financial records: bank statements, tax returns, and pay stubs.
Collateral information: documentation of assets you can use as collateral.
A plan: a clear, detailed explanation of the loan’s intended use.
Determine the exact loan amount needed, whether it’s for upgrading equipment, increasing inventory, or expanding marketing efforts. You don’t need to take out a large loan to make a difference in your business. Small loans can drive big improvements.
Help with the lending process
While the Center for Rural Affairs only supports small business owners in Nebraska, Women’s Business Centers are located throughout the country. These can help with business training, counseling, federal contracts, and access to credit and capital. Find your local Women’s Business Center at sba.gov/local-assistance/resource-partners/womens-business-centers
By Khushi Steichen, Center for Rural Affairs. Established in 1973, the Center for Rural Affairs is a private, nonprofit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.