When You're Ready

    

When you’re ready to begin the process of assembling all the information you need to complete an application for an SBA loan, here’s a handy checklist for you to consult to make sure you’ve covered all the bases. Detailed information on the different elements of a loan application is available in How to Apply.

Before You Begin

  • You must first try to get private financing for the money you need; by law, SBA may not guarantee a loan if a business can obtain funds on reasonable terms from a bank or other private source.
  • Make sure that your business fits the SBA definition of a small business according to SBA Size Standards.
  • Check the requirements of the particular loan you’re applying for to make sure that you’re eligible and that it provides the kind of financing you need.
  • Identify the lender you will be approaching and find out if it has any particular specifications you should be aware of.
  • Be sure that your financial statements are carefully prepared and up-to-date.

SBA Forms

  • Form 4: Application for Business Loan
  • Form 4-a: Schedule of Collateral - Schedule A
  • Form 413: Personal Financial Statement (for all owners, partners, officers and stockholders owning 20 percent or more of the business)
  • Form 912: Statement of Personal History
  • Form 1624: Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions
  • Form 1864: Statement Regarding Lobbying

Financial Information

  • Financial statements (balance sheets, income statements, and a reconciliation of net worth) for your business for the last three years.
  • Current (no more than 90 days old) interim financial statements for your business, including a schedule of term debt and aging of accounts payable and receivable.
  • If you are just starting out, a projected balance sheet and income statement.
  • If financial statements for the past three years are not available, a detailed one-year projection of income, expenses and cash flow.

Details on the financial information required can be found in SBA Form 4, Application for Business Loan. Formats for constructing a balance sheet, income statement, and cash flow statement can be found in Forms. 

Other Documentation
Documentation requirements may vary; contact your lender for the information you must supply. These elements are usually required:

  • Loan request stating the purpose of the loan.
  • Statement concerning loan repayment.
  • Itemized list of collateral other than that listed in SBA Form 4-a.
  • List of any machinery/equipment or other non-real estate assets (including cost), to be purchased with loan proceeds.
  • A resume (or brief description) including business experience for each principal of the business.
  • Signed business Federal Income Tax returns for the previous three years.
  • Signed personal Federal Income Tax Returns of principals for previous three years.
  • Brief history of the business and its problems; include an explanation of why the SBA loan is needed and how it will help the business.
  • Certificate of doing business. (If your business is a corporation, stamp the corporate seal on SBA Form 4, section 12).
  • List of names and addresses of any subsidiaries and affiliates, including concerns in which the applicant holds a controlling (but not necessarily a majority) interest and other concerns that may be affiliated by stock ownership, franchise, proposed merger or otherwise with the applicant.
  • Amount of investment in the business by the owner(s).
  • Information and personal financial statement(s) of any co-signers and/or guarantors for the loan who are not otherwise affiliated with the business.
  • Copy of business lease (or note from landlord giving terms of proposed lease).

Details on the documentation required can be found in SBA Form 4, Application for Business Loan.

Before You Submit the Application

  • Write an executive summary.
  • Make sure you have signed and dated all SBA Forms and financial statements.

For More Information
If you have any questions or need any further information, contact the SBA District Office nearest you.