2021-2022 Small Business Resource Guide | Page 9

Below are the typical items required for a small business loan application :
Loan Application Forms
Forms vary by program and lending institution , but they all ask for the same information . You should be prepared to answer the following questions :
• Why are you applying for this loan ?
• How will the loan proceeds be used ?
• What assets need to be purchased , and who are your suppliers ?
• What other business debt do you have , and who are your creditors ?
• Who are the members of your management team ?
Personal Background
Either as part of the loan application or as a separate document , you will likely need to provide some personal background information , including previous addresses , names used , criminal record , educational background , etc .
Some lenders require evidence of management or relevant business experience for the business owner and / or managers applying for the loan .
Business Plan
All loan programs require a sound business plan to be submitted with the loan application . The business plan should include a complete set of projected financial statements , including profit and loss , cash flow and balance sheet for the first few years of business . There are several free business plan templates available online .
Credit Score
Your lender will obtain your personal credit report as part of the application process . However , you should obtain a credit report from all three major consumer credit rating agencies before submitting a loan application to the lender . Inaccuracies and blemishes on your credit report can hurt your chances of getting a loan approved . It ’ s critical you try to clear these up before beginning the application process .
Business Credit Report
If you are already in business , you should be prepared to submit a credit report for your business . As with the personal credit report , it is important to review your business ’ credit report before beginning the application process .
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