SBA loan documents checklist

What documents do you need for any SBA loan?

Every lender builds its own checklist, but the core is much the same for 7(a) loans and other SBA programs. Expect to provide the following for the business and for each owner who guarantees the loan, which means every owner of 20% or more.

Business financials

• Business tax returns for the last three years, with all schedules. Most lenders also have you sign IRS Form 4506-C so they can confirm the returns with the IRS.
• Year-to-date profit and loss statement and balance sheet, current to within the last few months.
• Business debt schedule listing every loan, line of credit, equipment lease and credit card: the lender, original amount, current balance, monthly payment, rate and maturity date.
• Business bank statements for recent months, which many lenders request.

Personal financials

• Personal tax returns for the last three years for each guarantor.
• SBA Form 413 (Personal Financial Statement), listing your assets, debts, income and contingent liabilities, such as guarantees of other loans.
• Government-issued photo ID, such as a driver’s license or passport.

SBA forms

• SBA Form 1919 (Borrower Information Form), covering the business, its owners, the loan request and SBA eligibility questions such as citizenship and federal debt.

Ownership and legal

• Resumes for each owner, showing management and industry experience.
• Entity documents: articles of incorporation or organization, the operating agreement or bylaws, and any partnership agreement.
• Business licenses and permits your industry requires.
• Your current lease, if the business rents its space.

Which extra documents does your situation require?

The core list covers every loan. These situations each add their own documents:

Situation	Add these documents
Buying a business	Letter of intent or purchase agreement; the seller’s financial statements and tax returns; a business valuation
Commercial real estate	Purchase contract; property information; an appraisal and environmental review, both ordered by the lender
Start-up	Business plan; financial projections
Franchise	Franchise agreement; Franchise Disclosure Document (FDD)

If more than one applies, such as buying a franchised business along with its building, combine the lists.

What extra documents do you need to buy a business?

Lenders underwrite both you and the business you’re buying, so the seller’s records matter as much as yours. See SBA business acquisition loans for how these loans work.

• Letter of intent, and later the signed purchase agreement, showing the price, what’s included and any seller note.
• The seller’s business tax returns and financial statements, usually for the last three years plus year-to-date.
• A business valuation. Purchases above $350,000 need an independent valuation from a qualified appraiser.
• A Quality of Earnings report for purchases of $3 million or more.
• Proof of your equity injection, such as bank statements showing where your down payment comes from, plus the terms of any seller note on standby.
• A list of the assets included, such as equipment and inventory, and the real estate lease or its assignment.

Our guide on how to buy a business with an SBA loan walks through the full process.

What extra documents do you need for commercial real estate?

When an SBA loan buys, builds or renovates property your business will occupy, whether through a 7(a) or a 504 loan, add:

• The purchase contract, signed by you and the seller.
• Property information: the address, a description of the building, the most recent property tax bill, and any leases if part of the building is rented to others.
• Construction plans, budgets and contractor bids, if you’re building or renovating.

You don’t arrange the appraisal or environmental review yourself. The lender orders both, and borrowers typically pay for them as part of closing costs. Your business must also occupy at least 51% of an existing building, so be ready to show how the space will be used. See SBA commercial real estate loans for the occupancy rules.

What extra documents do start-ups need?

The SBA treats a business that has been generating revenue for 1 year or less as a start-up. With little or no track record, your plan does the work that past tax returns would normally do.

• A business plan explaining what you’ll sell, to whom, your competition, location, staffing and marketing, and exactly how the loan money will be spent.
• Financial projections with the assumptions behind them. They must show the business reaching debt service coverage of at least 1.15x within 2 years.
• Proof of your equity injection, which must be at least 10% of the total project cost for a 7(a) start-up.
• A lease or letter of intent for your location, and quotes for equipment and build-out.

Strong resumes matter even more here, because lenders are betting on your experience. See SBA loans for start-ups.

What extra documents do franchises need?

• The franchise agreement, signed or in the form you’ll sign.
• The Franchise Disclosure Document (FDD), which spells out the franchisor’s fees, obligations and any financial performance information it provides.

The brand must also be listed in the SBA Franchise Directory, which your lender checks. A new franchise unit also needs the start-up documents above, and a franchise resale needs the business purchase documents. See SBA franchise loans.

What slows down an SBA loan document review?

Many delays come from gaps and mismatches in the file itself. Common culprits:

• Incomplete tax returns, missing schedules or pages
• Stale year-to-date statements that are out of date by the time underwriting starts
• A debt schedule that doesn’t match the balance sheet
• Large deposits you can’t explain in the bank statements that show your down payment
• A personal financial statement that leaves out debts or guarantees of other loans

For a step-by-step look at timing, see how long an SBA loan takes.

How do you find the right lender before you send documents?

Assembling a full package takes real effort, so it’s worth sending it to lenders that regularly make loans like yours. Lenders differ in the industries, loan sizes and deal types they fund, and in what they ask for.

SBA Loan Connect ranks lenders using the SBA’s public 7(a) and 504 loan records, so you can see which lenders actually fund businesses like yours before you apply. Partner lenders are labeled. It’s free, and we never run a credit check. See how we rank lenders, or get matched to see lenders for your request.