Developing a Loan Proposal

A loan proposal is an abbreviated form of a business plan and can be used in place of a business plan in some circumstances in order to seek financing. Start Up businesses and existing businesses planning significant changes or a major expansion may need a business plan. Owners of existing businesses or individuals planning a business acquisition who need financing can use a Loan Proposal to communicate their loan project to potential lenders. In order for lender to make a decision on a loan deal, you must provide them with information in writing about the business and future plans. A quality loan proposal contains written narrative, financial information, and supporting documentation. The goal is to provide a clear picture of the business and financing needs. Developing a professional loan proposal to present to the potential lender will enable you to make a good impression and increase your chances of obtaining financing.

The ASBDC offers a variety of types of assistance to existing business owners that are developing a loan proposal to submit to a lender.

Action Steps for Developing a Loan Proposal

At some point, most existing businesses will seek financing and will, therefore, need to develop a loan proposal. To assist in this process, the ASBDC offers suggested Action Steps for Developing a Loan Proposal. These steps are intended to help guide you through the process as point you towards suggested information and tools.

• Action Steps for Developing a Loan Proposal

Training

In addition to offering live classes, the ASBDC offers several online training programs that can be very helpful in the process of developing a loan proposal.

• Training calendar - instructor-led courses

• Creating A Loan Package

• Creating Financial Projections

Articles and Information

The ASBDC provides articles, information, and tools pertaining to developing a loan proposal.

• Suggested Contents of a Loan Proposal

• Can I Qualify for a Business Loan?

• Obtaining Small Business Financing

• The Do's and Don'ts of Writing a Loan Proposal

Answers to Loan Proposal Questions

Arkansas residents who have questions regarding developing a loan proposal, contact your local SBDC office.

• SBDC offices

The Arkansas Small Business Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran’s status, or disability.