Even though the SBA-qualifying
standards are more flexible than other types of loans, lenders will
generally ask for certain information before deciding to use an
SBA loan program. Generally, a business will need the following
documentation to evaluate your loan request:
• Business profile. A document describing
type of business, annual sales, number of employees, length of time
in business and ownership.
• Loan request. A description of how loan
funds will be used. Should include purpose, amount and type of loan.
• Collateral. Description of collateral
offered to secure the loan, including equity in the business, borrowed
funds and available cash.
• Business financial statements. Complete
financial statements for the past three years and current interim
financial statements.
• Personal financial statements. Statements
of owners, partners, officers and stockholders owning 20% or more
of the business.
The strength and accuracy of your financial statements will be
the primary basis for the lending decision, so be sure that yours
are carefully prepared and up-to-date.
• The most important documents in your financial statements
are:
• Balance sheets from the last three fiscal year-ends.
• Income statements revealing your business profits or losses
for the last three years.
• Cash flow projections indicating how much cash you expect
to generate to repay the loan.
• Accounts receivable and “payable aging,” breaking
your receivables and payables in to 30-, 60-, 90- and past 90-day
old categories.
• Personal financial statements from you and your business
partners listing all personal assets, liabilities and monthly payments,
as well as your personal tax returns for the past three years.
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