A bank loan can be a huge relief for small business owners. The additional funds can help to bolster your bottom line, making it easier to achieve your specific goals. The problem, however, is that many small businesses find it difficult to get the financing they need from a conventional lender. While these loans have the best rates and terms around, they also have some of the strictest requirements.

The Small Business Administration (SBA) has made it easier for small business owners to qualify for the financing they need with SBA loans. The organization backs these loans, reducing the risk for the lenders so that you’re more likely to get approved. You still have to meet specific requirements, however. If you’re considering an SBA loan, here are a few tips to help you prepare to apply.

Compare Different Lenders

One critical thing to note is that the SBA doesn’t provide SBA loans. Instead, they only back them. SBA-approved lenders loan the funds. Check out various lenders and compare them closely to get a good idea of what your options are and who might have the best rates and terms for you.

Know the Minimum Requirements

Different lenders have different requirements. Not only do you need to meet the SBA’s requirements, but you also need to meet those of the lender. Look into what each lender requires as far as credit score, monthly or annual income, and other information.

Get Your Documents In Order

To apply for an SBA loan, you will need to provide a lot of documents, such as your business information, tax returns, credit history (business and personal), and bank statements. Gathering everything early will make it easier (and save you a ton of time) when you’re asked to provide it during the application process.

Fill Out Your Application

When filling out the application, the lender will ask you how much money you need, and why you need it. Be thoughtful in your responses. Rather than asking for the highest amount possible, have a goal, and know how much you’ll need to achieve it. While you can technically use the money for anything, giving the lender a thorough response can help to increase your odds of approval.

Be Ready for a Phone Interview

A lender might call you for an oral interview before deciding to approve your loan. Be prepared to back up the information you provide in your application and discuss your business plan to show you have a plan for repaying what you borrow.

SBA loans help small businesses across the country achieve their goals. If you need financing, they’re definitely an option worth investigating.