SBA 504 loan application
In order to apply for an SBA 504 loan, start by downloading the official SBA 504 application off the SBA website, SBA.gov. You will want to start at page one, and work your way through all twelve pages, taking your time to be thorough and provide all that is asked for.
The application can be filled in on your computer, and saved as you go onto the downloaded PDF. Talk to the lender and be sure to complete all sections that apply to your business.
You will need to fill out the application, and provide the following information and documentation:
1. The name of the borrower (you) and the name of the CDC, as well as contact information (address, phone, email, etc).
2. A credit memorandum. Usually the lender will pull your credit, you may want to check it first for any mistakes, and correct them before application.
3. "Eligibility Information Required for 504 Submission" form
4. Personal history statement. Take your time, and show why you are qualified for the position, you will need one for each officer and director, proprietor, partner, and stockholder with more than 20% ownership.
5. Current personal financial statements. Again you will need them for each officer and director, proprietor, partner, and stockholder with more than 20% ownership.
6. Balance sheet and income statement.
7. Federal income tax returns for 2 years.
8. Balance sheet and income statement for past 120 days with an aging of accounts receivable and payable listed.
9. Projected annualized income statement for first 2 years after the loan.
10. New business-A monthly cash flow analysis for 12 months.
11. A schedule of debts, with dates and amounts, payment, interest rate, balance owed, maturity, who it is payable to, and collateral securing it.
12. A schedule with previous government financing.
13. Name of affiliate or subsidiary businesses with 2 years Federal income tax returns.
14. Franchise agreement where applicable.
15. Copy of existing or proposed lease agreement.
16. Copy of key cost documents, such as vendor quotes for machinery.
17. Environmental analysis.
18. Appraisal for project real estate.
19. Itemized list of estimated closing costs.
20. A letter from participating lender stating terms and conditions of its participation, and why it is not financing the entire project. (The SBA does not want to guarantee a loan the borrower can get without the guarantee on their own.)
21. A resolution from partners, members, Board, etc. authorizing the borrower to borrow.
22. USCIS verification of status of any alien who is an owner of 20% of more.
23. Credit reports for the SBC, its owner, and affiliated companies.
24. Completed SBA Form 159.
25. Copies of debt lien instruments, or equivalent for any debt being refinanced.
Once you have gathered all of this information together and submitted your application, you should hear back quickly about approval, and hopefully get the financing you need for your small business.