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Applying for an SBA Loan Can be A Real Pain


Woman agonizing over loan documents

Most people dread applying for an SBA business loan. It is different than applying for a personal loan. When you apply for a personal loan, you submit documents like your your loan application, W-2 earnings statement, credit report, personal financial statement, and a few other standard documents. Business loans are more complex. It is the business entity (not the owner) that is applying for the loan. Sure, the owner probably must guarantee the loan. But the borrowing entity is the business. So, the application and the documents supporting the loan request must be about the business. When I worked as an SBA small business banker, we had to assembly many documents. Listed below is a list of 20 of the most commonly requested document from an SBA lender:


  1. Loan Request Form - This document lists the total spending for your project (e.g., purchase land, construction, purchase existing building, renovations, purchase equipment, debt refinancing, working capital) less the amount of cash you are injecting into the project.

  2. Management Profile - Who are the owners, their education, and work experiences?

  3. Statement of Personal History (SBA Form 912) - What are the owners' personal backgrounds?

  4. Personal Financial Statement - This is a list of personal assets and liabilities and sources of income for each owner.

  5. Business History - A brief background of the business, the industry it competes in, and its sales and operations activities.

  6. Business Debt Schedule - A detailed schedule of the debts the business owes

  7. IRS Form 4506 - request for a copy or transcript of tax returns

  8. Business Financial Statements and Tax Returns - Usually the last 3 tax years

  9. Interim Business Financial Statements - The year-to-date internal financial statements

  10. Personal Tax Returns

  11. Copies of Bank Statements

  12. Articles of Incorporation and Bylaws

  13. Immigration and Naturalization Authorization - for non U.S. citizens

  14. Business Plan

  15. Franchise Documents and Agreement (if applicable)

  16. Copy of executed Purchase and Sale Agreement

  17. Copies of all bids for construction and renovation projects

  18. Environmental Questionnaire

  19. Copy of Promissory Notes (if loan request is to refinance existing debt)

  20. Copy of Warranty Deed and Survey of Property (for real estate loans)


The extent of documents requested varies by lender.

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