SBA Loan Application Checklist

Overview

SBA loans offer the best terms available but require extensive documentation. This checklist ensures you're fully prepared before applying.

Eligibility Check ✓

Before gathering documents, confirm eligibility:

• ● For-profit business
• ● Operate in the United States
• ● Have invested owner equity
• ● Meet SBA size standards for your industry
• ● Not delinquent on any government debt
• ● Eligible industry (not gambling, lending, etc.)

Personal Documents

For All Owners with 20%+ Ownership

• ● Government-issued ID (driver's license or passport)
• ● Personal tax returns (3 years, all schedules)
• ● Personal financial statement (SBA Form 413)
• ● Resume highlighting relevant experience
• ● Personal credit report authorization

Business Documents

Formation & Legal

• ● Articles of Incorporation/Organization
• ● Business licenses and permits
• ● Certificate of Good Standing (from state)
• ● Operating Agreement or Bylaws
• ● Franchise agreement (if applicable)
• ● EIN letter from IRS

Financial Records

• ● Business tax returns (3 years, all schedules)
• ● Year-to-date profit & loss statement
• ● Balance sheet (current)
• ● Bank statements (12 months)
• ● Accounts receivable aging
• ● Accounts payable aging
• ● Debt schedule (all existing loans)

Business Plan (Required for Newer Businesses)

• ● Executive summary
• ● Company description
• ● Market analysis
• ● Organization structure
• ● Product/service description
• ● Marketing strategy
• ● Financial projections (3 years)

Property/Collateral Documents

For Real Estate

• ● Purchase agreement or letter of intent
• ● Environmental assessment (Phase I)
• ● Appraisal (ordered by lender)
• ● Current lease (if purchasing leased property)

For Equipment

• ● Equipment quotes or invoices
• ● Specifications
• ● Installation costs estimate

For Business Acquisition

• ● Letter of intent or purchase agreement
• ● Target business tax returns (3 years)
• ● Target business financial statements
• ● Valuation report or basis for price
• ● Asset list being acquired

SBA-Specific Forms

• ● SBA Form 1919 (Borrower Information Form)
• ● SBA Form 413 (Personal Financial Statement)
• ● SBA Form 912 (Statement of Personal History)
• ● SBA Form 159 (Fee Disclosure)
• ● SBA Form 601 (Agreement of Compliance)

Supporting Documentation

• ● Lease agreement for business location
• ● Insurance certificates (general liability, property)
• ● Major contracts or agreements
• ● Organizational chart
• ● Use of funds breakdown

Application Tips

Before Applying

1. ●Review your credit report - Dispute any errors
2. ●Organize documents - Use clearly labeled folders
3. ●Prepare explanations - For any financial irregularities
4. ●Calculate your debt service coverage - Should be 1.25x+

During the Process

1. ●Respond quickly to lender requests
2. ●Be honest - Omissions are worse than issues
3. ●Stay organized - Track all communications
4. ●Ask questions - Don't assume anything

Common Mistakes to Avoid

• ●❌ Missing documents or pages
• ●❌ Outdated financial statements
• ●❌ Unexplained large deposits or withdrawals
• ●❌ Personal and business funds mixed
• ●❌ Incomplete tax returns

Timeline Expectations

Final Checklist Before Submission

• ● All documents are complete (no missing pages)
• ● Financial statements are current (within 90 days)
• ● All forms are signed and dated
• ● Copies made of everything submitted
• ● Questions prepared for lender

Conclusion

SBA loan applications are thorough but manageable with proper preparation. Start gathering documents early, stay organized, and respond promptly to lender requests. The extra effort pays off in the form of the best rates and terms available.