Businesses thinking of applying for a Small Business Administration Loan will need to provide a variety of information to the prospective lender. SBA qualifying standards are very flexible compared to other types of loans, but documentation is still a must. Make sure that you information is current and accurate; you only have one chance to make a good first impression.
Personal financial statements must be provided by all owners, officers, partners, and any stockholder owning 20% or more in the business. Personal financial statements should also include current tax returns.
Business financial statements will also need to be provided. Make sure that the numbers reflected are accurate and that the statement is complete with all information required by the SBA.
Any collateral that the requesting business has needs to be disclosed. Banks will need to know if there is any equity in the business, any cash available and if there are any borrowed funds currently outstanding.
All businesses will need to provide specific information on their loan request. Banks will need to know how the money borrowed is going to be spent. Businesses should include information the loan amount and type of loan they are requesting.
A business profile will need to be made. Banks will need to know information on the type of business, how many employees it has, how long the business has been in operation and who are the owners of the business.
Gathering all of the above information prior to trying to obtain your SBA loan will save you time and frustration in the long run.
