SBA Loan Documents: What You Will Need

Do you know the information needed to complete a bank loan application? Do you know how to get an SBA loan? Here’s some information make the process less painful. Each bank loan program has specific requirements but much of the necessary information is the same.

First, create a checklist to streamline your process and start gathering!

1. Personal Background/Resumes

Information needed includes your business background as well as previous addresses, names used, criminal record, educational background, etc.

2. Business Plan

Though SmartBiz doesn’t require a business plan, your bank may require one. And if you need help preparing a business plan, there are free or low-cost resources available. Check out your local SBDC office; they can help.

3. Personal and Business Credit Reports

Be sure to obtain a credit report from all three major consumer credit rating agencies - Equifax, Experian and TransUnion. If there are inaccuracies, try to resolve before getting started.

4. Income Tax Returns

Most lenders require the previous 2-3 years of business income tax returns.

5. Financial Statements

Owners with more than a 20 percent stake in a business are often required to submit signed personal financial statements. Business financial statements have three components 1) Profits and loss statements. 2) Cash flow statements 3) Balance sheets (though SmartBiz only requires #1 and #3).

6. Collateral

Requirements for collateral vary - some bank loan programs don’t require it, others with do. Have a document prepared that describes personal or business property that can be used to secure a loan.

7. Legal Documents

These documents can include business licenses, Articles of Incorporation, 3^rd party contracts, franchise agreements and commercial leases.

An Eligibility Summary is located on the SmartBiz website listing specific requirements for our loans including business requirements, cash flow needed, liquidity, personal credit, public records and specific SBA criteria.