While all loans may require some paperwork, SBA loans typically require more than other types. Whether you’re looking for funding to invest in new equipment or you need a quick cash infusion to bring in more staff members, you may help speed up the process by bringing the right documentation with you. Creating a checklist ensures that you’re ready to hit the ground running and get your business the money that it needs.
1. Personal Background and Resumes
Both lenders and the SBA require a detailed look into who they are loaning money to. With this in mind, SBA loan applications typically require detailed personal background information and resumes. This may include your full legal name, any former names used, previous addresses, and a history of your employment or business ownership experience. You may also be asked to disclose your education history and any criminal record, if applicable.
When applying for an SBA loan, think of it as compiling a job resume. The documentation that you provide should portray you as a reliable borrower who can be trusted with the funds you’re requesting.
2. Business Plan
A strong business plan typically includes market analysis, revenue models, management structure, and growth strategy, along with supporting financial statements and forecasts. If you need help creating one, local Small Business Development Centers (SBDCs) and similar organizations offer guidance and templates to walk you through the process. Depending on the location, these tools may be free of charge.
Unlike some other lenders, SmartBiz Bank® does not require a business plan for an SBA loan. While we’ll still gather some information about your business, you don’t have to worry about compiling a written business plan when you choose us for your SBA loan.
3. Personal and Business Credit Reports
Be sure to obtain a credit report from all three major consumer credit rating agencies - Equifax®, Experian®, and TransUnion®. If there are inaccuracies, try to resolve them before getting started.
4. Income Tax Returns
Most lenders require the previous two to three years of business income tax returns.
5. Financial Statements
Owners with more than a 20% stake in the business are often required to submit signed personal financial statements in addition to business documents. These disclosures help lenders assess both business and personal financial strength, including assets, liabilities, income, and contingent obligations.
For the business itself, lenders typically request profit and loss (P&L) statements and balance sheets while cash flow statements may also be reviewed, even if not always required. A profit and loss statement summarizes revenue, expenses, and net income over a specific period, showing whether your business is operating at a profit. A balance sheet provides a snapshot of what the business owns and owes at a single point in time by listing assets, liabilities, and owner’s equity. A cash flow statement shows how money moves in and out of your business, highlighting your ability to cover operating expenses and loan payments.
When viewed together, these financial statements provide a clear picture of your business’s financial status and the direction things are going. These documents can provide lenders with a lot of confidence about lending you money. Unlike some other lenders, SmartBiz Bank® only requires a P&L statement and a balance sheet.
6. Collateral
Collateral is any personal or business asset pledged to secure your SBA loan, and the specific requirements can vary depending on the lender and program. Some SBA loans do not require collateral while others may require you to document real estate, equipment, inventory, or other valuable property. Lenders typically ask for a detailed description of the assets, including estimated value and any existing liens. Having this information organized ahead of time helps streamline the approval process and demonstrates your readiness as a borrower.
7. Legal Documents
These documents can include business licenses, Articles of Incorporation, 3rd party contracts, franchise agreements, and commercial leases.
An Eligibility Summary is located on our website, listing specific requirements for our loans including business requirements, cash flow needed, liquidity, personal credit, public records and specific SBA criteria.
Do you need extra funds for your small business? An SBA loan is the best bet for small businesses with low rates, long terms, and low monthly payments. Visit SmartBiz Bank today and discover in about five minutes if you’re qualified to apply for an SBA loan with one of our bank partners. Check out our great reviews on TrustPilot!
How to Prepare Before You Apply
Before submitting your SBA loan application, take time to gather and organize your documentation. Lenders want to see that your business is stable, well-managed, and prepared to use funds responsibly. Preparing in advance can speed up approval times and help you avoid avoidable requests for more information. It also helps make a positive first impression on your lender.
Follow these tips to get things in order before you apply:
- Check your personal and business credit: Review credit reports for errors and be prepared to explain any negative marks.
- Organize financial records: Make sure tax returns, financial statements, and bank statements are complete and consistent.
- Update your business plan and projections: Be ready to clearly explain how you will use loan funds and how they will support revenue and growth.
- Confirm ownership and legal structure details: Ensure entity documents, ownership percentages, and required signatures are accurate and up to date.
