Your Go-To SBA Loan

Application Checklist

Presented by

CHOOSING THE

RIGHT SBA LOAN

STEP ONE

Choosing The Right SBA Loan

General 7(a) Loan

Most basic and most used of SBA’s business loan programs.

Used for starting, acquiring, and expanding a small business.

Eligibility:

www.sba.gov/content/7a-loan-program-eligibility

Choosing The Right SBA Loan

Special Purpose 7(a) Loans

The SBA offers special purpose 7(a) loans: www.sba.gov/category/navigation-structure/loans-grants/small-business-

loans/sba-loan-programs/7a-loan-program/special-purpose-loans-program

➔ CAPLines: designed to help small businesses meet short-

term and cyclical capital needs

➔ SBA Export Loans: designed to specifically help design or

expand export activities

Choosing The Right SBA Loan

Special Purpose 7(a) Loans, cont.

➔ Advantage Loans: Obtain 7(a) loans through an alternative

application process (the difference is with the lender, not the

loan requirements)

◆ Small/Rural Lender Advantage: If your business is located in a

rural community, you may qualify for special financing

◆ Community Advantage: designed to meet needs of businesses

in underserved markets

◆ Small Loan Advantage

Choosing The Right SBA Loan

Certified Development Company (CDC) 504 Loan

Provides growing businesses with long-term, fixed-rate financing

for major fixed assets (land, buildings, equipment, etc.)

Eligibility: www.sba.gov/content/cdc504-loan-program-eligibility

Choosing The Right SBA Loan

Microloan

Very small loans to start-up, newly established or growing small

businesses. SBA makes funds available to local nonprofit

community-based lenders who approve loans for eligible buyers

up to $50,000.

Eligibility: Varies according to lender.

For a list of Participating Microloan Intermediary Lenders:www.sba.gov/content/microloan-program

Choosing The Right SBA Loan

Other Loans Through the SBA

There are several other loan programs offered through the

SBA’s website that fall under the following categories:

➔ Disaster

➔ Export Assistance

➔ Veteran and Military Community

➔ Special Purpose, such as Pollution Control

To learn more about the loan programs not covered on this

presentation: www.sba.gov/content/sba-loans

YOUR APPLICATION

CHECKLIST

STEP TWO

Your Application Checklist

7(a) and CDC/504 Application Checklist

Other than the application, the rest of the required

documentation is the same!

1. SBA Loan Application Form:

➔ 7(a) Loan Application (SBA Form 1919):

www.sba.gov/sites/default/files/SBA%20Form%201919%204-28-

14_review.pdf

➔ CDC/504 Loan Application (SBA Form 1244):

www.sba.gov/content/application-section-504-loan

Your Application Checklist

7(a) Application (SBA Form 1919)www.sba.gov/sites/default/files/SBA%20Form%201919%204-28-14_review.pdf

➔ Straightforward, applicant information + 22 questions

regarding your business

➔ Instructions to fill out additional forms depending on your

answers

➔ For clarification or questions, you’ll contact the SBA

Participating Lender that will be processing the loan request

Your Application Checklist

CDC/504 Application (SBA Form 1244)www.sba.gov/content/application-section-504-loan

➔ Slightly more involved application than the 7(a), we

recommend contacting your nearest Certified Development

Company (CDC) to begin

◆ Your CDC receives the application and forwards it on to the

SBA

➔ The first page is a checklist of several pieces of

documentation you will need to attach:

◆ Some of the requested information is duplicated in outside

documentation requested by the SBA on their website (listed

later)

Your Application Checklist

CDC/504 Application (SBA Form 1244) cont.

➔ There are a few things on the checklist that do not appear

elsewhere in requested materials, such as:

◆ A credit memorandum from the CDC

◆ Copies of key cost documents, such as estimates

◆ Independent appraisal of project real estate

◆ Environmental Analysis, if applicable

◆ Letter of intent from participating lender

◆ SBA Form 159 (Fee Disclosure Form and Compensation

Agreement)

◆ Copies of most current debt and lien instruments

◆ Credit Alert Verification Reporting System (CAIVRS) report

Your Application Checklist

CDC/504 Application (SBA Form 1244) cont.

➔ Once you’ve made it past the first checklist (Part A) you

move onto questions (Part B). This section includes:

◆ Impact on Jobs

◆ Economic Development Objectives

◆ Proposed Use of Funds

◆ Balance Sheet

◆ Income Statement

◆ Cash Flow Available for P&I

◆ List of Project Collateral

Your Application Checklist

7(a) and CDC/504 Application Checklist

In addition to the application, you will need to present several

other pieces of documentation...

2. Personal Background and Financial Statement

➔ Statement of Personal History www.sba.gov/content/statement-

personal-history

➔ Personal Financial Statement www.sba.gov/content/personal-financial-

statement

Your Application Checklist

7(a) and CDC/504 Application Checklist

3. Business Financial Statements

➔ Profit and Loss (P&L) Statement

◆ Current within 90 days of your application

◆ Also include supplementary schedules from the last three

fiscal years

➔ Projected Financial Statements

◆ Detailed, one-year projection of income and finances

◆ Attach written explanation of how you expect to achieve

projection

Your Application Checklist

7(a) and CDC/504 Application Checklist

4. Ownership and Affiliations (list of names and addresses)

➔ Any subsidiaries and affiliates, including concerns in which you

hold a controlling interest and other concerns that may be affiliated

by stock ownership, franchise, proposed merger or otherwise with

you

5. Business Certificate/License

➔ If a corporation, stamp your corporate seal on the SBA loan

application

6. Loan Application History (records of any loans you may

have applied for in the past)

Your Application Checklist

7(a) and CDC/504 Application Checklist

7. Income Tax Returns

➔ Signed personal and business federal income tax returns of your

business’ principals for previous three years

8. Résumés (of each principal)

9. Business Overview and History

➔ Brief history of the business and its challenges

◆ Include an explanation of why the SBA loan is needed and how

it will help the business

10. Business Lease

➔ If no lease yet, provide terms of proposed lease from landlord

Your Application Checklist

7(a) and CDC/504 Application Checklist

If You are Purchasing an Existing Business ONLY

➔ Current balance sheet and P&L statement of business to be

purchased

➔ Previous two years federal income tax returns of the

business

➔ Proposed Bill of Sale, including Terms of Sale

➔ Asking price with schedule of inventory, machinery and

equipment, furniture and fixtures

Your Application Checklist

Microloan Application Checklist

➔ Microloan Intermediaries set requirements and make

decisions for microloans

➔ You may be required to fulfill training or planning

requirements before your loan application is considered

(designed to help you launch or expand your business.)

➔ For more information and application specifics:

◆ Contact your local SBA District Office

www.sba.gov/tools/local-assistance/districtoffices

◆ Or Participating Microloan Intermediary Lender

www.sba.gov/sites/default/files/articles/Microlender_140716.pdf

Your Application Checklist

For more application information, visit SBA’s website:

➔ How To Prepare Your Loan:

www.sba.gov/category/navigation-structure/loans-grants/small-business-

loans/how-prepare-your-loan-application

➔ 7(a): www.sba.gov/content/sba-loan-application-checklist

➔ Certified Development Company (CDC) 504:

www.sba.gov/content/cdc504-loan-application-process

➔ Microloan: www.sba.gov/content/microloan-program

Participating Microloan Intermediaries:

www.sba.gov/sites/default/files/articles/Microlender_140716.pdf

APPLY!

STEP THREE

APPLY!

After you’ve collected everything you’ll need to apply for an

SBA loan, you’re ready to visit a local bank or lending

institution that participates in SBA programs.

Remember, the SBA does not provide direct loans; you’ll

be following SBA guidelines at your local lender.

You can find a lender easily through the SBA’s website:

www.sba.gov/content/search-sba-lenders-do

For general information, visit the SBA’s website:

www.sba.gov/