The Loan Prequalification Program gives business owners the opportunity to have their loan application for $250,000 or less reviewed and analyzed by a SBA-designated intermediary before sending it to lenders for consideration.
This enable the applicant to receive detailed feedback and counseling before formally applying for a small business loan. Receiving this type of information increases your chances of getting a loan.
The program strongly considers the applicant’s character, credit, experience and reliability rather than his or her assets.
The review also focuses on loan-requested terms, business history, credit, and financial ratios. Customers for this program are designated small businesses.
The loan is delivered through selected financial intermediaries located in specific areas throughout the United States.
Please note that these are not typical federal grants for small businesses. This program does not give money directly, as it’s purpose is to assist any small business to prepared and review the application before submitting it officially.
Here is more information about SBA’s Loan Prequalification Program.