Prepare Your Documentation:
Identify and gather the necessary documents, such as financial statements, tax returns, business plan, and collateral information. When applying for an SBA loan, the specific documentation required can vary based on the lender and the type of SBA loan. However, here's a comprehensive list of common documentation needed for an SBA loan application:
Business Financial Statements
Profit and loss (P&L) statement for the past three years.
Current balance sheet.
Projected financials.
Personal Financial Statements
Personal financial statement for each business owner, showing assets, liabilities, and net worth.
Income Tax Returns:
- Business tax returns for the past 2 years.
- Personal tax returns for each business owner for the past 2 years.
When applying for an SBA loan, several tax forms are typically required to assess the financial health and compliance of the business. Here are the common tax forms needed for an SBA loan application, please check Appendix A for required tax returns based on your business type. These tax forms provide crucial financial information about the business and its owners, aiding in the evaluation of creditworthiness and repayment capacity when applying for an SBA loan. It's important to work closely with your lender to ensure you provide all necessary tax documentation for a successful loan application.
Business Legal Documents:
- Business licenses and registrations.
- Articles of incorporation.
- Contracts with third parties (if applicable).
- Business Debt Schedule:
- Detailed schedule of all existing business debts.
Business Debt Schedule:
- Detailed schedule of all existing business debts.
Ownership and Affiliation Documents:
- Names and addresses of all subsidiaries and affiliates.
- Business ownership and affiliations history.
Personal Identification:
- Copies of driver's licenses or other forms of identification for each business owner.
Business Lease:
- Copy of the lease for the business location.
Bank Statements:
- Business bank statements for the past six months.
Legal Documentation
The legal documentation section of the SBA loan application requires you to provide certain legal documents related to your business. These documents are essential to verify the legal status and compliance of your business. The required legal documents may include, but are not limited to:
- Business licenses and permits.
- Articles of incorporation or organization.
- Bylaws or operating agreement.
- Business tax returns (typically for the past two years).
- Financial statements, including profit and loss statements and balance sheets.
- Bank statements.
- Commercial lease agreement (if applicable).
- Franchise agreements (if applicable).
- Contracts or agreements with suppliers, vendors, or customers.
- Insurance policies.
Next Steps
Ensure you have the necessary legal documents ready and organized before starting the application process. Take the following steps to proceed with the legal documentation section:
- Gather all the required legal documents listed above.
- Ensure the documents are up-to-date, accurate, and reflect the current state of your business.
- Make electronic or physical copies of the documents for submission.
- Double-check that all documents are uploaded or submitted successfully.
Financial Documentation
The financial documentation section of the SBA loan application requires you to provide specific financial information about your business. These documents are crucial for evaluating the financial health and viability of your business. The required financial documents may include, but are not limited to:
- Business tax returns (typically for the past two to three years)
- Personal tax returns (for each business owner)
- Income statements (profit and loss statements) for the past two to three years
- Balance sheets for the past two to three years
- Cash flow statements for the past two to three years
- Bank statements (business and personal)
- Business credit reports
- Accounts receivable and payable aging reports
- Financial projections for the next few years
- Other relevant financial statements or documents
Next Steps
To proceed with the financial documentation section of the SBA loan application, follow these steps:
- Gather all the required financial documents listed above.
- Ensure the documents are complete, accurate, and up to date.
- Organize the documents in a logical order and label them appropriately.
- Create electronic or physical copies of the documents for submission.
- Double-check that all documents are uploaded or submitted successfully.
