How to Write an SBA Business Plan

Having a hard time getting an SBA loan approved? You're not the only one.

The majority of SBA loans get denied due to a poor business plan.

It's not a matter of explaining your business concept; it's about making lenders understand that your business will be profitable and that you'll be able to repay the loan.

However, crafting a solid SBA business plan is challenging if you don't have a clue about how to begin.

That's why we've put together this guide to help you learn the process step by step.

We'll demonstrate exactly how to write a business plan for SBA loans and what to include to grab a lender's attention. We will even give you a free SBA business plan template to start with.

Why you need a business plan for an SBA loan

If you're considering applying for an SBA loan, you need to have a sound business plan, as banks want to understand how you'll be earning and paying back the loan on time. That’s when a solid business plan becomes your savior and gives all the information your lender needs. If you don’t have a solid business plan, they won't take the risk.

Ensure your business plan gives lenders access to actual numbers—like how much you anticipate earning, what your costs will be, and how specifically you'll use the loan to expand your business.

Lenders also look at your business plan to spot any risks. They’ll want to know if you’ve thought about the “what ifs”—like what happens if sales are slower than expected or if the market changes.

A good business plan will include backup strategies to handle these situations tactfully.

What to include in your (SBA) business plan

Here are the key components of a business plan you shouldn’t miss:

1. Executive summary

The executive summary is an overall summary of your business that draws together all key points from your complete business plan. Though you’ll write this section last, lenders tend to read this section first, so it must be concise, attractive, and direct.

What to include:

• Business name, location, and industry
• Mission statement and company vision
• Brief overview of products or services
• Funding request and loan purpose
• Summary of financial projections and expected growth

A strong executive summary grabs the reader’s attention and encourages them to continue reviewing your plan.

2. Company overview

This section explains the core identity of your business—what you do, how you do it, and why it matters. It provides the lender with context about your company’s structure, history, and operations.

What to include:

• Business name, legal structure (LLC, corporation, sole proprietorship)
• Founding date and business history
• Location(s) and operational setup
• Key milestones or achievements
• Unique value proposition (what sets you apart from competitors)

A strong company overview instills confidence in lenders by demonstrating a solid foundation and clear direction for your business.

3. Market analysis

This section provides an in-depth look at your industry, target market, and competition. It shows that you’ve done your homework and understand the market demand for your business.

What to include:

• Industry overview and trends
• Target market details (demographics, buying behavior)
• Competitor analysis (strengths, weaknesses, opportunities)
• Market positioning (where your business fits)
• Projected market growth and potential challenges

A thorough market analysis proves that your business is viable and has a strong demand. SBA lenders need to see that you understand your competition and have a strategy for attracting and retaining customers.

4. Organization and management

This section outlines your company’s leadership structure and explains who is responsible for decision-making, operations, and finances. Lenders want to know that you have a capable team to execute your plan.

What to include:

• Business structure (LLC, partnership, S-corp, etc.)
• Key team members (roles, experience, qualifications)
• Organizational chart (chain of command)
• Advisory board or consultants (if applicable)
• Staffing plan and future hiring needs

A well-structured management team increases lender confidence by showing that you have the expertise to grow and sustain your business.

5. Sales and marketing plan

This section explains how you plan to attract, convert, and retain customers. It outlines your marketing strategies, sales tactics, and pricing structure.

What to include:

• Marketing strategies (online, offline, partnerships)
• Sales strategy (direct sales, e-commerce, distribution)
• Pricing model and revenue streams
• Advertising and promotional plans
• Customer acquisition and retention tactics

Lenders want to see a clear and actionable plan for generating revenue. A well-defined sales and marketing plan proves that you understand your customer base and have a solid strategy for scaling your business.

6. Financial projections

This is one of the most critical sections of your SBA business plan. You need to include a detailed financial projection that provides comprehensive financial statements and projections—proving your ability to repay the loan.

What to include:

• Income statement (projected revenue and expenses)
• Cash flow statement (how money moves in and out)
• Balance sheet (assets, liabilities, and equity)
• Break-even analysis (how long until profitability)
• Loan request details (amount, use of funds, repayment plan)

Lenders need data-driven proof that your business is financially sound. Accurate and realistic financial projections show that you understand your numbers and have a solid plan for profitability.

7. Appendix

The appendix is the last section of your business plan and includes supporting documents that validate your business plan. It serves as a reference for additional details that lenders may need.

What to include:

• Business licenses and permits
• Legal documents (LLC agreements, trademarks)
• Resumes of key team members
• Detailed market research reports
• Letters of support or reference

The appendix reinforces your credibility and provides lenders with any additional proof of legitimacy they may require. It’s also a useful section for including documents that were too detailed for the main sections.

How long should your SBA business plan be?

The answer is subjective, but it’s reasonable to assert that an SBA business plan doesn’t usually exceed 15 to 40 pages. It’s long enough to include everything lenders want, like financial projections, the market, and how the loan will be used, but not so long that they feel overloaded with excess material.

It's best to be as straightforward as possible. Focus on how your business operates, how the loan will be paid back, and the reasons that justify your company as a low risk for lenders.

The size of the business will dictate the scope of the plan. A brief plan will suffice for a small service store, yet with a more complex business such as a manufacturing unit, more information is needed.

It is critical to cover all aspects, but it is equally important to remain succinct. You want to answer the lender’s questions, not have them feel overwhelmed by excessive details.

Additional resources for writing an SBA business plan

Writing an SBA business plan may be daunting, but you don't need to do it alone. Some great resources will make the process much easier, whether you're just beginning or looking to grow your business. Some of the best sources of help are listed below:

1. MySBA Learning

The SBA Learning platform hosts free webinars on a variety of topics, from starting your own business to writing an in-depth business plan. It is a great place for beginners to review the essentials or for more advanced users to explore specific subjects in detail at their own pace.

2. SCORE.org

SCORE is a nonprofit organization that partners with the SBA to provide free mentoring for experienced entrepreneurs and small business owners. Advisors with experience in your industry can help you develop your business plan and provide tailored mentorship to you. They offer additional resources, including workshops and webinars on how to create a successful SBA business plan.

3. U.S. Small Business Administration (SBA)

The U.S. SBA website accompanies you through the entire process of crafting a business plan in a systematic way, which is really useful if you are stuck at the starting point. Moreover, here, you can find many guides and useful tips that will help you from A to Z – from approaching your lenders to receiving the funds.

4. Local Small Business Development Centers (SBDCs)

SBDCs help small business owners by providing information at minimal cost or for free. They conduct workshops on formulating business strategies and go as far as checking your plan and providing advice. For those who need more help, some specialists can assist you in working through some of the problems.

5. Women’s Business Centers (WBCs)

WBCs offer low-cost counseling and mentoring training aimed at women entrepreneurs. They conduct individual mentoring sessions alongside group training that includes business planning, advertising, and many more. It is useful when you need people who appreciate your background to assist you.

Download the SBA Business Plan Template

If you're beginning from scratch, an SBA business plan template can help. This template is specifically created for SBA loan applicants and walks you through each section step by step. It comes with SBA business plan examples and advice to ensure you can produce a clear and actionable plan that complies with all the requirements.

SBA lending assistance: Improve your chances of getting approved

Getting approved for an SBA loan can feel like jumping through hoops. The application process is complicated, and without the right guidance, it’s easy to get denied. That’s where our business plan consultants come in.

We at PlanGrowLab help entrepreneurs navigate the SBA lending journey from start to finish, giving you the best chance at getting approved.

Our consultants create strategic, customized business plans that speak directly to what lenders want to see. They dig deep into your vision, financial projections, and market strategy, presenting your business as a solid investment.

We also understand what lenders need because we stay up-to-date with SBA requirements and trends. Whether you’re applying for a 7(a) loan, 504 loans, or a Microloan, our experts tailor your business plan to fit the specific loan type and purpose. Lastly, we help you identify potential red flags and take action on them upfront, increasing your chances of approval.