A Comprehensive Guide to Required Documentation in an SBA 7a Loan Application

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Securing a Small Business Administration (SBA) loan involves gathering and submitting a variety of documents to provide a comprehensive overview of your business’s financial health, personal background, and potential collateral. The following is a detailed guide combining insights from three sources to help you prepare the necessary documents for a successful SBA loan application.

Essential Documents for SBA Loan Application

Business Financial Statements

  • Annual Balance Sheets and Income Statements: Past three years. An EBITDA of at least 1.15x the SBA loan payments is required.
  • Monthly Balance Sheets and Income Statements: Past two years.
  • Projected Financial Statements: Next three years with assumptions.

Federal Tax Returns

  • Business and Personal Tax Returns: Last three years.
  • IRS Form 4506-T: Consent for the IRS to send tax transcripts directly to the bank.

Bank Statements

  • Monthly Bank Statements: Past two years.

Borrower Information Form (SBA Form 1919)

  • Collects essential information about the borrower and business.

Personal Financial Statement (SBA Form 413)

  • Provides details about personal assets, liabilities, income, and expenses for all individuals owning 20% or more of the business.

Business Debt Schedule (SBA Form 2202)

  • Lists all existing business debts with details on the creditor, loan amount, balance, and payment terms.

Business Plan

  • Comprehensive plan including:
  • Value Proposition
  • Business Model
  • Go-to-Market Strategy
  • Management Team
  • Historical and Projected Financial Statements
  • Sources and Uses of Funds

Statement of Personal History (SBA Form 912)

  • Required if specific questions on Form 1919 are answered affirmatively, providing details about the borrower’s personal history.

  Use of Proceeds Schedule

  • Outlines how loan funds will be utilized, such as for land acquisition, construction, machinery, working capital, or business acquisition.

Resumes/Bios of Key Management Personnel

  • Highlight qualifications, experience, and skills of the management team.

Real Estate Purchase Agreement

  • Required if the loan involves purchasing real estate, outlining terms and conditions of the purchase.

Acquisition Documents

Franchise Agreement and FTC Disclosure Statement

  • Necessary if the loan involves purchasing a franchise.

Articles of Organization and Business Licenses

  • Legal documents establishing the business entity and demonstrating compliance with local, state, and federal regulations.

Documentation of Lawsuits, Judgments, and Bankruptcy

  • Provides insight into the financial and legal history of the business and its owners.

Business Asset Listing

  • Comprehensive list of all business assets, including inventory, equipment, and intellectual property.

Debt Schedule

  • Summary of all existing loans and key terms.

Real Estate Lease Agreement

  • If the business operates from leased premises, provide a copy of the lease agreement.


Information Supplied by Third Parties

Background Checks and Credit Reports

Assess the borrower’s credibility and character, including criminal records and credit history. Typically, a credit score of 680+ is ideal.

Business Valuation and Real Estate Appraisals

Independent evaluations to determine the fair market value of the business and property.


Environmental Investigation Reports

For industries with environmental risks, ensuring compliance with regulations and identifying potential liabilities.


Final Notes

Applying for an SBA loan requires thorough preparation and organization. Providing detailed and accurate information not only enhances your credibility with potential lenders but also increases your chances of securing the loan. Review all documents for completeness and accuracy, and consult with financial professionals if needed. Good luck with your SBA loan application!

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