Resourceful information and the honesty behind it is just superb.
I just think most people seeking business loans are conflating the experience to what they see happen to start-ups that have taken off and have been turned into motion picture documentaries or stories.
Then there are some would be entrepreneurs that couldn’t possibly meet the preconditions that has been basically laid out in your piece to secure a business loan of any type. This is due to the audacity of said preconditions. Some of the preconditions are so economically laden that it would defeat the purpose of applying for a small business loan in the first place. It would seem unnecessary to even apply for a small business loan because it appears the business is already doing well without it. Such a business rather, should be seeking a leveraged investment vehicle with the amount of profitability proof required to obtain said loan.
I will speak to the two most common types of minority small business loan seekers that I come across. The first which I will call type A is fairly common. Type As are really looking for seed money to fund their ideas of, or for a prospective future business. It is easy to dismiss these individuals because the idea and profitability is all on paper — or is suppose to be. Preconditions will never be met, even if the gumption and wherewithall is there, ingredients that lack merit or distinction when it comes to obtaining the loan. There is no high risk investment platform accessible to these particular entrepreneurs.
Then there is the type B. They meet the minimum qualifications but lack the cashflow. They have the experience but can’t get the funding because they believe it is very daunting as is laid out — with reason to believe it is unrealistic and that makes them less confident to even apply. What is realistic for them is the need to receive the loan to create the profitability.
For what it is worth, just my 2 cents.