Small Business Administration (SBA) lenders play a crucial role in helping entrepreneurs secure funding to launch or grow their businesses. When applying for an SBA loan, one essential document that lenders will scrutinize is your business plan. Below, we discuss critical elements that SBA lenders want to see in your business plan.

Executive Summary

Your business plan should begin with an executive summary that provides a succinct yet comprehensive overview of your business. This section should briefly describe your business, the problem it solves, its target market, and its competitive advantage.

Detailed Business Description

Your business plan should include a detailed description of your business. This section should describe the type of business, its legal structure, the location of the business, and the products or services it offers.

Market Analysis

A thorough market analysis demonstrates your understanding of your industry and market. It should include information on your target market, including its size and demographics, and an analysis of your competitors and how you plan to differentiate your business from them.

Organization and Management

SBA lenders want to understand the organizational structure of your business and who is managing it. This section should outline your business’s legal structure and provide a brief biography of your management team, detailing their relevant experience and skills.

Product Line and Services

In this section, you should describe in detail the products or services your business offers. Explain how your products or services meet the needs of your target market and how they compare to those offered by competitors.

Marketing and Sales Strategy

Your business plan should explain your strategy for attracting and retaining customers. This part should outline your pricing strategy, promotional plans, and sales strategy.

Funding Request

If you’re applying for an SBA loan, you’ll likely need to include a funding request. This section should detail how much funding you’re seeking, how you plan to use the funds, and what kind of return you expect to generate.

Financial Projections

Lenders want to see that your business will be capable of repaying the loan. Include financial projections for the next three to five years, including income statements, balance sheets, and cash flow statements.

Appendix

The appendix of your business plan can include any additional supporting documents, such as resumes of key personnel, patents, licenses, contracts, or any other information that supports your business plan.

Constructing a thorough and well-researched business plan not only improves your chances of securing an SBA loan but also serves as a roadmap for your business’s success. Remember, lenders want to see that you’ve done your homework and that your business is a sound investment. If you need an SBA loan without any unnecessary red tape, contact Innovative Commercial Capital today.