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.
Resumés
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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