Make sure you don’t make these when applying for an SBA Loan. As a bonus, listen to 42 year SBA veteran Allen Herman elaborate on the 10 biggest mistakes.

1. Credit Score atleast 650 – 675
2. Incomplete personal financial information
3. Insufficient business financial and operating statements
4. Don’t obtain current personal and business credit reports
5. Business financial statements must be less than 60 days old and for three years
6. Personal and business Federal Income Tax returns must be current for the following: Income tax returns must be for the last three years
7. Incomplete explanation of business history and growth of business. Make sure it is complete. Include growth history and pattern of business.
8. Provide personal résumés of all principals of business, not just the primary.
9. Most wait until all paperwork is complete, best to meet at an early date with lender and discuss business proposal. This saves unnecessary paperwork and time.
10. Make sure this is discussed upfront: will the borrower have 20-30% of down payment at proposed purchase price. Discuss where the proposed funds will be derived from. Not getting this in the beginning, causes time and energy spent for a negative result.

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