Do You Have the Right Stuff for a Government Small Business Loan?

A Home Business Article Contributed by G. Uma Bennett

Do You Have the Right Stuff for a Government Small Business Loan?

There are many sources of information regarding the requirements for a government small business loan, what most of funding advisors will tell you is to expect a lengthy process that involves several in-depth components within the application. Having all your ducks in a row, in the form of your financial and tax documentation for you personally as well as your business credentials, such as your permits and licenses. Prepare yourself to have your life put under the microscope when you apply for a government small business loan.

Be Aware of the Hidden Costs of a Government Small Business Loan

When you make it through the approval process and receive a government small business loan, you need to be aware that there are hidden costs associated with the funding in order for you to be in compliance. For instance, keeping detailed books may require you to hire a certified public accountant. Depending on the type of business you operate, proof of inspections for equipment or premises along with evidence of compliance with federal and state employee regulations can be required to be submitted on a regular basis.

Preparing to Repay Your Government Small Business Loan

It is in your best interest once you receive your government small business loan to take a deep breath and keep a level head. It is easy to get consumed with the daily tasks of improving your business, that it will be time to make your first loan payment. To keep your credit in good standing you must honor your repayment schedule. Arrange an automatic deduction from your business checking account at least 7 days before your payment is due, this way you're sure your payment will posts on time.

Secure Your Government Small Business Loan Information

Use discretion and common sense when it comes to the information that relates to your government small business loan. Maintain a file of notarized copies of all of your financial information for yourself and your business that was part of your original application. Store this information in a secure place such as with your attorney, a bank safe deposit box or your accountant. Review all the legal provisions of your agreement regarding your funding with your attorney and make sure you understand the tax implications with the help of your accountant as well.

Keep Current with Regulations in a Government Small Business Loan

Dealing with the government small business loan programs will give you a working relationship with a complex organization that has many regulations that are subject to change. Seek out an experienced financial advisor that is familiar with the agency that has awarded your funding and maintain a working relationship so that you can respond to any changes that will affect your business. Ignorance of the law is no excuse when it comes to compliance with regulations, make sure you keep your business funding secure by knowing what is expected of you.