Business is good, but it could be better if you had a bigger space, a larger advertising budget or more employees. It is time to explore the idea of an expansion loan. Expansion loans differ from start-up loans because, instead of starting a business, you are improving an already established one. This narrows the loan possibility pool; but once you have the tools you need, there are still plenty of programs available to help make your expansion dreams a reality .
Instructions
Loan Application Necessities
1. Decide what you need to expand your business and make a list of the items. If you want to increase the number of employees, determine how many workers you would like to hire. If you want to expand your office space, determine how big a space you will need. Be as thorough as possible.
2. Determine the cost of the items on your list. Calculate the wages or salaries you want to pay any new employees. Price office space that would suit your needs for expansion. Get an average cost for all equipment and supplies. The sum of your list will be your loan amount.
3. Write your business plan or, if you already have one, update it to reflect your needs for expansion. A business plan is required to apply for most small business loans, plus it is a good road map for your business. If you do not have time or the know-write a business plan, hire someone to write it for you.
4. Locate a small business expansion loan that suits your needs. The Small Business Administration (SBA) website (http://www.sba.gov) has a listing of loans specifically for expansion. (See References.) You can also check out your local Small Business Development Center (SBDC), which is usually housed on local college campuses. The SBA also provides a locator for your nearest SBDC. Financial assistance can range from grants (money you do not have to pay back), to more traditional loans (monthly payments), to deferred loans (the loans have a predetermined grace period in which no payments are due).
5. Follow the application instructions to the letter. Failing to meet the application guidelines could result in your application being rejected.
