Need Money To Start a Business? Apply For a Business Loan Using These Steps

The Big Beautiful Bill has passed in Congress 2025 during the Trump Administration, and some of the people it benefits are the business owners or entrepreneurs. Therefore, it makes sense to take advantage of the benefits of owning a business during this term.

Now, although that sounds like a great idea, it may not seem possible for many due to lack of funding. Well, there is a way to gain access to capital via a bank business loan. Before going to apply for a business loan, there are some steps you will need to take in order to make your chances of securing one a success.

Prepare

• Determine the purpose for the money you will borrow. For instance, will it be for marketing, start up capital, inventory etc)
• Have a predetermined amount in mind as far as the amount of money you will need. Don’t go into the bank without figuring out all the costs.
• Be prepared to answer how you plan on repaying the loan, with proof.
• Know if you are going into the bank for an unsecured loan (no collateral) or a secured loan (collateral)

Check Your Credit Report and Finances

• Utilize Equifax, Experian and TransUnion to check your personal credit report, and also utilize Dun & Bradstreet, Experian Business to check your business credit report. If improvement is needed before you go an apply for the business loan, do so.
• Evaluate your Debt to Income ratio. Get the debt as low as possible, or at least reasonable levels.

Prepare all Your Documents for Presentation

• Personal Tax Returns (personal and business) up to 3 years
• Bank Statements up to one year
• Assets and Liabilities list
• If needed, have documents on all collateral (deeds, automobiles, equipment etc) and a personal guarantee, or a promise that you are legally responsible and that you will repay even if business goes south

Business Legal and Registration Documents

• Gain your legal Business License(s) and Permit(s) along with EIN number
• Operating Agreement and Bylaws
• If your business is a partnership or franchise, have the partnership and/or franchise agreement

Ready and Complete Business Plan

• Write out your executive summary along with the description of products and services, marketing and customer profile, market analysis, management and organizational structure, 3 years of financial projections
• Create a Use of Funds Statement, or how the loan funds will be allocated/spent

Choose the Best Financial Institution to Apply for Loan

• Research the reputations of each institution and reviews
• Compare what each institution offers as far as fees, interest rates, and repayment terms
• Determine which types of loans they offer and which is best for you
• Determine if you prefer a bank or a credit union

Submit Loan Application

• After completing and attaching all necessary documents to go along with the loan application, submit to the bank.

After you have submitted your loan application, there will be an approval process. During this particular time, the bank may contact you for more information and even an interview. At this point, you have not been approved, however, learn as much as you can about the loan terms prior to the approval because you don’t want to sign onto the agreement if you are approved and you don’t know what you’re signing. Therefore, review thoroughly before signing.

This will be at the loan closing where you will sign if you agree to the terms, and the bank will disperse your funds to you. From there, you will need to track how your business is using the funds, record all repayments and be sure to pay on time. If challenging times come for the business, reach out and speak to the bank lender; don’t just panic. Think solution, not sink.

Need some encouragement? Read how these black businessmen and women of the past made their dreams a reality during a time that was much more difficult than today:

• John Don Juan Knight – Mahogany and Gold Mine Millionaire
• Gilbert C. Harris – Wig Manufacturer
• Maggie Lena Walker – Bank Founder
• Samuel T. Wilcox – Restaurant and Hotel Owner