Documents Needed for an SBA Loan
Whether you are acquiring a small business or expanding a small business, SBA loans can help you succeed! It is important to know the documents needed for an SBA Loan before starting the application process.
When applying for an SBA loan, it is crucial to ensure that you have the necessary documentation. Below we highlight several documents needed for an SBA loan. We aim to provide you with the information and resources you need to successfully apply for an SBA loan. If you have any additional questions, Peak Business Valuation is happy to help! Peak is a professional business appraiser that can help small businesses seeking an SBA loan. We can connect you with the best SBA lenders for your business needs. Schedule a free consultation to learn more!
Documents Required When Applying for an SBA Loan
To apply for an SBA Loan a borrower needs to provide several documents. In the following paragraphs, we review a few of these documents. Whether you are obtaining an SBA loan for buying or selling a business, accurate and up-to-date documents can increase the chances of a successful loan application and positively impact the valuation of the business. For questions, reach out to Peak Business Valuation. Peak is a trusted partner with more than 80 banks as their 3rd party valuation firm for SBA loans.
A business plan is an important document that helps business owners make informed decisions.
Items to include in your business plan for an SBA loan:
- Company Goals
- Market Analysis
- Financial Projections
- Use of Funding
- Repayment Ability
A business plan for an SBA loan helps lenders verify that you have a functional business. It also helps lenders identify the risk that comes with the SBA loan. When writing a business plan for an SBA loan, it is important to note how the SBA loan funds will be used and how you will repay the loan. Doing so can increase the lender’s trust in you and the small business. A strong business plan is one of the first documents needed for an SBA loan.
For more information, Peak Business Valuation, business appraiser, can provide further guidance. We are happy to connect you with quality individuals who can help you write your business plan. A detailed business plan for an SBA loan is key to securing SBA financing. Schedule a consultation today.
Basic Business Information
The next document needed for an SBA loan details basic background information about the small business. This includes details such as the company’s legal name, structure, history, and ownership. When reviewing your application for an SBA loan, this information helps the lender evaluate your credibility. As such, this document is crucial when applying for an SBA loan.
If you have any questions about what basic information to include, Peak Business Valuation is happy to help! We work with over 80 SBA lenders across the country that specialize in SBA financing for small businesses. We are happy to connect you with one who can meet your business needs. Start today by scheduling a free consultation below!
Personal Income Tax Returns
Personal income tax returns are a crucial component of an SBA loan application. Tax returns verify income, creditworthiness, and eligibility for certain SBA loan programs. This helps the SBA determine your ability to repay the loan. Additionally, personal income tax returns can reveal any outstanding tax liabilities. This may hurt your ability to qualify for an SBA loan. As such, personal income tax returns play a crucial role in determining whether you will receive the SBA loan.
Different SBA lenders may have different requirements when it comes to creditworthiness and personal tax returns. Peak Business Valuation, business appraiser, is here to connect you with an SBA lender who may be a good fit for your personal and business needs. Schedule a consultation today to get connected with SBA lenders.
Personal Financial Statement
The next document needed for an SBA loan is a personal financial statement. A personal financial statement provides a detailed overview of your financial status. This statement includes information about your assets, liabilities, income, and expenses. Like the other documents needed for an SBA loan, a personal financial statement reflects your ability to repay the SBA loan. It also helps the SBA assess risks and determine the amount of collateral required to secure the SBA loan.
Creating a personal financial statement is a multi-step process. This involves gathering financial information and calculating your net worth. This can be a very complex process. A quality SBA lender can help walk you through the process. Peak is also here to help! We work with more than 80 SBA lenders across the country and can connect you to the best individual to work with when applying for an SBA loan. Schedule a free consultation with Peak Business Valuation today!
Business Financial Statement
Similarly, a business financial statement gives an overview of a company’s financial status. This document includes information about the business’s revenue, expenses, assets, and liabilities. The business financial statement helps the SBA establish the terms of the loan, such as the interest rate and repayment period. Additionally, it helps the SBA ensure that your business can meet loan obligations. As such, a business financial statement is a crucial document needed to apply for an SBA loan. Creating a business financial statement can also be a complex process. Peak Business Valuation can connect you with quality SBA lenders who can provide you with the guidance you need to create this document.
Another document needed for an SBA loan is Form 1919. Form 1919 is also known as the Borrower Information Form. It gathers important information about your personal and business financial status. This information is crucial as it helps determine your eligibility for the SBA loan. To complete this document, you will need information about your income, assets, and liabilities. Additionally, it is important to highlight the purpose of the loan. The Borrower Information Form can be downloaded online or obtained from the lender. SBA.gov has valuable information on filling out this form.
Legal documents are other essential documents required for an SBA loan. These documents verify that the small business operates legally and in compliance with the law. The required documents can vary depending on the type of business you operate.
Common Legal Documents Needed for an SBA Loan:
- Business licenses
- Other agreements
Providing legal documents helps the lender understand your business and assess the risks. Whether you are buying or expanding a small business, it is crucial to ensure that you have legal authorization. Be sure to evaluate your small business or the small business you are buying to insure compliance with the regulations. Have the necessary legal documents to provide when applying for an SBA loan.
SBA Form 912
Next, SBA Form 912 contains information about your personal history. This includes your criminal record, financial history, and any other relevant information. If your small business is co-owned, this form is required for all individuals who own at least 20 percent of the business. This information helps the SBA evaluate your character and creditworthiness. It ensures that the SBA loan is received by individuals who are financially responsible. Completing the SBA Form 912 is simple. The document can be downloaded online or obtained from the lender.
If you have any questions about completing Form 912 to apply for an SBA loan, Peak Business Valuation is happy to help connect you with an SBA lender. Selecting an SBA lender who can best meet your needs is crucial in successfully securing SBA financing for your small business.
Work with Us!
As you can see, applying for an SBA loan is a complex process. Lenders use the above documents to verify the creditworthiness and financial health of a small business and borrower. There may be additional information required depending on which SBA loan program you apply for. We hope this summary of the documents needed for an SBA loan is helpful to you in the SBA lending process!
Peak Business Valuation can provide extensive guidance on who to work with when applying for SBA loans. By working with more than 80 SBA lenders across the country, we can help vet an SBA lender who is the best fit for your small business financing needs. Reach out by scheduling a free consultation with Peak Business Valuation, business appraiser.
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