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SBA Loans


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SBA Loans

The U.S. Small Business Administration (SBA) assists small business owners with starting and expanding their businesses by helping them get loans through private banks and financial institutions. SBA offers a number of low-interest loan programs for business owners who may be having difficulty getting traditional bank loans.

To apply for an SBA loan, you need to visit your local participating bank or lending institution. When you apply for an SBA loan you are actually applying for a commercial loan, structured according to SBA requirements, which receives an SBA guaranty. This guaranty is portion of the loan the SBA will pay back to the lender should you default on your loan payments.

To get a list of SBA lenders in your area, contact your SBA Distrct Office.

SBA's Financial Assistance Guide describes SBA loan programs, including eligibility requirements, and how to apply for them.

SBA Loan Application Checklist

The following forms and documents are required when applying for a loan that is guaranteed by the U.S. Small Business Administration.

SBA does not provide direct loans. You will need to contact your local bank or lending institution to obtain an SBA loan. Your lender will submit your loan package to SBA.

You and your lender should review this checklist to ensure all documentation is included.

SBA Loan Application

Personal Background

Statement of Personal History - SBA Form 912

  1. Personal Financial Statement

    Personal Financial Statement - SBA form 413

  2. Business Financial Statements

    Detailed, signed Balance Sheet and Profit & Loss. Statements current (within 90 days of application) and last three (3) fiscal years Supplementary Schedules required on Current Financial Statements.

  3. Projected Financial Statements

    Detailed one (1) year projection of Income & Finances (please attach written explanation as to how you expect to achieve same).

  4. Ownership and Affiliations

    A list of names and addresses of any subsidiaries and affiliates, including concerns in which the applicant holds a controlling (but not necessarily a majority) interest and other concerns that may be affiliated by stock ownership, franchise, proposed merger or otherwise with the applicant.

  5. Business Certificate / License

    Certificate of Doing Business (If a corporation, stamp corporate seal on SBA Form 4 section 12).

  6. Loan Application History

    By Law, the SBA may not guarantee a loan if a business can obtain funds on reasonable terms from a bank or other private source. A borrower therefore must first seek private financing.

    A company must be independently owned and operated, not dominant in its field and must meet certain standards of size in terms of employees or annual receipts. Loans cannot b made to speculative businesses, newspapers, or businesses engaged in gambling.

    Applicants for loans must also agree to comply with SBA regulation that there will be no discrimination in employment or services to the public, based on race, color, religion, national origin, sex or marital status.

  7. Business Income Tax Returns

    Signed Business Federal Income Tax Returns for previous three (3) year.

  8. Personal Tax Returns

    Signed Personal Federal Income Tax Returns of principals for previous three (3) years.

  9. Resumes

    Personal Resume including business experience of each principal.

  10. Business Overview and History

    Brief history of the business and its problems. Include an explanation of why the SBA loan is needed and how it will help the business.

  11. Business Lease

    Copy of Business Lease (or note from landlord) giving terms of proposed lease.

  12. For purchasing an existing business:

    a. Current Balance Sheet and Profit & Loss Statement of business to be purchased.
    b. Previous two (2) years Federal Income Tax Returns of the business.
    c. Propose Bill of Sale Including: Terms of Sale.
    d. Asking Price with schedule of:

    1. Inventory
    2. Machinery & Equipment
    3. Furniture & Fixtures

The following are direct links to information about commonly requested SBA programs:

Starting and Expanding Businesses

  • Basic 7(a) Loan Program
    For starting, acquiring and expanding a small business, 7(a) loans are the most basic and most used type loan of SBA's business loan programs. Borrowers must apply through a participating lender institution.

7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses.

All 7(a) loans are provided by lenders who are called participants because they participate with SBA in the 7(a) program. Not all lenders choose to participate, but most American banks do. There are also some non-bank lenders who participate with SBA in the 7(a) program which expands the availability of lenders making loans under SBA guidelines.

7(a) loans are only available on a guaranty basis. This means they are provided by lenders who choose to structure their own loans by SBA's requirements and who apply and receive a guaranty from SBA on a portion of this loan. The SBA does not fully guaranty 7(a) loans. The lender and SBA share the risk that a borrower will not be able to repay the loan in full. The guaranty is a guaranty against payment default. It does not cover imprudent decisions by the lender or misrepresentation by the borrower.

Under the guaranty concept, commercial lenders make and administer the loans.

The business applies to a lender for ...

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