SBA 7a Loan Application
Most times where there is a guarantee, and especially with the U.S. Government, you will need to fill out a few forms. Do not be deterred from applying for the loan. Talk to your prospective lender and question them as to how much assistance they can provide with filling out the necessary forms. Another option, and a very good one, is to contact your nearest Score office.
SBA 7a Loan Application | A Few Things The SBA Will Need
- The small business owner will have to give a statement concerning their personal history. This will include any principal owners of the business.
- A list of anything that will be used for collateral. This includes furniture, equipment, machinery, land, buildings, fixtures, inventory, and accounts receivable. The list must include any serial numbers or payment schedules.
- Company history should be in paragraph format to comply with the SBA 7a loan application.
- Although this is a business loan, the SBA will require a current personal balance sheet. This requirement includes any other persons who share 20%, or more, of your small business. On the 7a loan application, the SBA is interested in the liabilities and assets of the spouse of any person who has ownership of your business.
- If you are using a co-signer, be aware that they will bear the same scrutiny as if they owned the small business themselves. If your small business is less than financially perfect, please keep in mind that this is the reason an owner uses an SBA 7a loan co-signer in the first place; and, a co-signer may not be needed.
If purchasing equipment is the purpose of this loan, than the name and address of the seller will need to be provided in the SBA 7a loan application. This should include an itemized list along with the cost associated with the items.
- The SBA 7a loan application will require you to list yourself, or any principle officer of your small business who has been involved in any bankruptcy.
- Do the owners of your business have controlling interest in other businesses? A list will need to be given with each of the names and their relationship to your business.
- The SBA 7a loan application will inquire as to whether or not you, or any owner, of the small business is currently involved in a lawsuit.
- If the small business applying for the loan is a franchise, the agreement will need to be included in the SBA 7a loan application.
- Include when applicable any plans for construction, and its specifications. The final construction plans will need to be included before the loan is funded.
The SBA 7a loan application can be overwhelming. However, your SBA lender, and the SBA itself, is available to guide you through the process. It is always a good idea to find a lender that is experienced with the type and scope of your financial needs.