Business Plans / Projections for SBA lenders

November 12, 2020

by a searcher from Full Sail University in Milwaukee, WI, USA

Anyone willing to share business plan presentations/PDFs that were used to successfully attaining SBA financing from a bank?

I'm trying to settle on my index, and figure out how much detail to show with so many unknowns that need to be acknowledged. Interested especially in how folks have navigated this during COVID, but all resources would be welcome. PM or email to me redacted if you'd rather not post publicly.

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Reply by a lender
in Yorba Linda, CA, USA

At Live Oak Bank, we are the number #1 SBA lender in the nation by dollar volume. We have seen many, many iterations of business plans and projections. Since the credit decision is heavily focused on historical company performance, the projections and plans should focus on your plan for transition as well as any investments that you plan to make to professionalize and grow the business. The plan should show how you will continue to generate cash flow and liquidity to repay the debt throughout those transitions. If the business is exposed to Covid tailwinds or headwinds, that should also be addressed. You may want to avoid putting forth plans that include rapid or drastic change as that will only signal risk to a lender. Conservative growth and a carefully managed transition is what a lender will typically want to see.

Reply by a searcher
in Alpharetta, GA, USA

I would advise you to simply find a lender that does not require a business plan. Like everything else in the loan process, it is a negotiated point. Ask the selling broker if he has a lender who he has worked with in the past.

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