By: Elena Mart

Securing an SBA loan can be transformative for small businesses, yet the process often feels like navigating a labyrinth. Fidelity Bank’s Shirley Polanco offers her expert advice on how entrepreneurs can chart a clear path to financing success.

When small businesses need financing to expand, refinance, or acquire assets, they often turn to Small Business Administration (SBA) loans. Known for their favorable terms and accessibility, these loans can provide a lifeline for entrepreneurs—but they also come with a maze of requirements, paperwork, and approvals.

That’s where Shirley Polanco steps in. As an experienced SBA lender with Fidelity Bank, Polanco has helped secure a substantial amount in financing for small business owners over the past five years. Her deep understanding of the SBA loan process, combined with a passion for simplifying complex deals, makes her a trusted advisor to entrepreneurs seeking funding.

“I’ve seen how overwhelming SBA loans can feel for business owners, especially first-time borrowers,” Polanco says. “But with the right guidance, what seems complicated can become manageable—and ultimately lead to business growth and success.”

Step One: Assessing Eligibility and Preparing Early

The first hurdle for most borrowers is understanding if they’re eligible for an SBA loan. While the requirements vary depending on the loan type, Polanco emphasizes that certain fundamentals apply across the board.

“Before you even begin the application, make sure you have a clear picture of your financial standing,” she advises. This includes reviewing credit scores, debt-to-income ratios, and business cash flow. “Strong financial health is key, but even if you have some weak spots, addressing them early can improve your chances of success.”

Polanco recommends assembling key documents ahead of time, such as tax returns, profit-and-loss statements, balance sheets, and cash flow projections. For newer businesses, a comprehensive business plan is essential. “Your business plan should tell a compelling story about your vision, how you’ll use the loan, and how you’ll pay it back,” she explains.

Step Two: Choosing the Right Loan for Your Needs

Two of the most common SBA loans are the 7(a) and the 504. The 7(a) is the most versatile, often used for working capital, business acquisitions, and expansion. The 504 loan, on the other hand, is tailored for purchasing real estate or large equipment.

“Choosing the right loan type depends on your specific goals,” Polanco explains. “I always start by asking clients about their long-term plans. Are they trying to buy a new office building, expand their workforce, or acquire another business? The answer will guide us toward the best financing option.”

One of Polanco’s recent clients, a manufacturing business owner, initially sought a 7(a) loan for equipment purchases. After reviewing their needs, Polanco recommended a 504 loan, which provided better terms and lower down payments for their situation. “The client was thrilled not just with the financing but with the guidance,” Polanco says.

Step Three: Crafting a Strong Application

Once the loan type is selected, the next step is preparing a strong application. According to Polanco, this is where many borrowers stumble. “The SBA process is thorough for a reason,” she notes. “The better prepared you are, the smoother the process will be.”

Polanco advises being specific about how the loan will be used. For example, if funds will go toward hiring new staff or purchasing equipment, include a detailed breakdown of costs. Additionally, realistic revenue projections are crucial. “Overly optimistic forecasts can raise red flags,” Polanco warns. “Lenders want to see projections that are ambitious but achievable.”

Step Four: Managing the Timeline and Process

Patience is a virtue when it comes to SBA loans. “These aren’t same-day approvals,” Polanco explains. “The timeline from application to closing can range from 60 to 90 days or longer.”

She adds that delays often occur when borrowers are unprepared or fail to respond promptly to requests for additional documentation. “Staying organized and maintaining good communication with your lender can make a huge difference,” Polanco says.

For Polanco, part of her role is acting as a guide and advocate throughout the process. “I help my clients understand what’s needed at every step, but I also push to keep the process moving on the bank’s end,” she says.

Avoiding Common Pitfalls

Polanco highlights a few common mistakes borrowers should avoid. In addition to underestimating the timeline, she warns against submitting incomplete applications or overlooking eligibility requirements.

“One frequent error is not having a clear plan for the funds,” Polanco says. “If a lender asks how the money will be used and you don’t have a detailed answer, it can hurt your chances.”

Finally, Polanco emphasizes the importance of working with an experienced lender. “Not all lenders specialize in SBA loans, and that can lead to confusion or delays,” she explains. “Look for someone who knows the process inside and out and can advocate for you.”

The Bigger Picture

For Polanco, helping small business owners isn’t just about closing deals—it’s about empowering them to reach their goals. “I’ve worked with entrepreneurs from all walks of life, and the one thing they all have in common is a drive to succeed,” she says. “My job is to remove the roadblocks so they can focus on what they do best.”

With the right preparation, guidance, and persistence, Polanco believes that any small business can navigate the SBA loan process—and come out stronger on the other side.

Whether you’re expanding, acquiring, or refinancing, Shirley is here to make the process as smooth and efficient as possible. Click the link to connect and take your business to the next level!

https://www.fidelitybanknc.com/sba-lending/team/shirley-polanco/

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.

Published by Iris S.