SBA 504 Loan Application
This is a brief description of some of the information that the SBA and CDC will need to fund a 504 loan.
The SBA 504 loan application can be a complex collection of endless forms. Fortunately, a certified SBA loan counselor can alleviate much of the pain associated with the quantity of paperwork. The private banking institution holding the first lien will also be a considerable asset in production of the necessary paperwork.
SBA 504 Loan Application | May Include the Following:
- An overview of your business credit will include a CDC analysis of not only the history of your business, but what defines your business as well. Also include information about your management team. In a nutshell, a resume for all management that you consider “in charge” of the daily operation of your business.
- Be prepared to give a statement from each individual owning 20% or more of your business. This would include stockholders and partners. You must also include a personal statement with financial information current within 90 days.
- Federal income tax returns and a balance sheet for the previous two years. This would also have to be dated within 120 days of the application, including accounts receivable and any income or payments.
- The SBA 504 loan application will also need to include a project description and an income statement for 2 years following the funded SBA loan.
- A list of your debts and a payment schedule.
- Information on any and all previous government financing you have received for the current small business.
- A list of all businesses in which you are either a current owner, or have a controlling interest.
- If you own a franchise, you will need the agreement or contract. If you do not have a requested document, please contact your franchise and request any paperwork required for the SBA 504 loan application.
- List any expenses for all contractors or professionals.
- A written estimate or quote for equipment and machinery expenses.
- An appraisal for the assets in which you seek financing.
- In order to receive funding for an SBA 504 loan, you will also have to include (in the application) a business credit report, a credit report for all principle owners, and a credit report for any affiliated small businesses you own.
Although there are many additional items you will need to supply, this is a general idea of the scope and range of the SBA 504 loan application.
To get started, please be sure to visit the SBA 504 loan center to learn more about this Small Business Administration program.