SBA 7 a loan application
When applying for an SBA 7 (a) loan it is important to understand what is required for application. Although the SBA has streamlined most of the 7 (a) loan application processes, you still need to provide the lender with a variety of statements and documentation before they will consider you for a loan, even an SBA guaranteed loan.
The following is a quick-look form or checklist for SBA 7 (a) loan applications. Without all of the items on this checklist, your application will not be considered for approval, so filling out the proper forms, and getting started on your application, doing a thorough job is extremely important.
These are the various forms and documents needed as part of the SBA 7 (a) loan application:
- SBA Form 4, Application for Business Loan- This is the actual SBA form. It is the loan application. You can download it off of SBA.gov, and fill it out. The form should be completed by the business owner, and should not be returned until completed in full.
- SBA Form 4i, This is the Lender Application for Guarantee of Participation- This form should be completed by the lending institution.
- SBA Form 912- This is a personal background statement. Take your time and make sure the lender understands why you are qualified to run the business. Anyone with more than 20% ownership will need to create a background statement.
- SBA Form 413- This is a personal financial statement. Again, all owners (20%) need to fill one out.
- Business financial statements- This should include a detailed, signed balance sheet and Profit and Loss (P&L) statements (also signed and dated), bank statements for the last 90 days, supplementary schedules for the last three fiscal years.
- Projected financial statements- This is a pro forma, and it should be one year of projected income and finance with explanations for the lender of why you have made these financial projections.
- Affiliations and ownerships- Provide a list of names and addresses of any subsidiaries and affiliates that the applicant holds a controlling interest in (20% or more).
- License and certificates- Provide the certificate of doing business, corporate seal, etc. In other words, show your certification and licensing to show you are in fact a professional, and legally doing business.
- Loan application history- You must show that you tried to get private financing before applying for an SBA 7 (a) loan.
- Business and personal income tax returns- Provide 3 years worth of signed business federal tax returns, as well as 3 years of signed personal federal tax returns.
- Resume- Include a resume for each principal with experience clearly outlined.
- Overview- This should be a brief overview and history of the business, and explanation of how SBA loan will help.
- Lease- A copy of your lease agreement or proposed lease agreement for the retail space you will use or do use for your small business.