Many entrepreneurs in Nevada use federal Small Business Administration loans to get their businesses running. There are few limitations on what type of businesses are eligible to qualify for SBA loans. However, it is important for borrowers to understand how this type of loan works when they apply.
The Small Business Administration does not directly finance these loans. Instead, the SBA backs lenders who offer this type of loan when eligibility criteria are met. Small business owners can borrow anywhere from $500 to $5.5 million and use the money for a variety of purposes, including real estate transactions and working capital.
Many entrepreneurs choose SBA loans based on their flexibility and special benefits for the borrower. SBA loans are less restrictive than other types of loans that may sometimes only be used for certain types of financing within the business, such as rental payments.
Business owners who intend to apply for SBA loans should have at least a couple years of financial statements on hand. The next step in acquiring a loan is to find a lender with SBA backing and experience working with small businesses.
A small business owner may also wish to speak to an attorney with experience in businesses formation and planning. The lawyer could help the entrepreneur choose which type of business structure to use during incorporation. Incorporating a business can shield the owner from personal liability. When it is time to sign a contract or create a service contract for customers to sign, an attorney could assist with editing and drafting. The lawyer may also be able to provide advice in regard to avoiding potential lawsuits.