How is a business plan important for getting loans?

A business plan is very important on two different subjects; grants and loans.

A business plan is very important on two different subjects; grants and loans. Basically there are no grants, except for nonprofit organizations. And those are difficult to get even if you are a nonprofit. If you want a regular loan, a business plan is extremely important. If you go to a bank today they probably won't even talk to you unless you have got a business plan. Now there are always exceptions to the rules. There are no cut-and-dry rules. Each bank has it's own criteria for giving a loan. Even if the government will guarantee that 70%-80%, then they still have rules on whether or not they will give you a loan. Most banks do not like start-ups. Small banks are more open to them rather than the larger major banks. The Veterans' Administration has some loans available.

Written by Joe Lefkowitz -
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