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What Information Do I Need for a Business Loan Application?

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Question: What Information Do I Need for a Business Loan Application?
When you go to a bank or the Small Business Administration (SBA) for a business loan, you will probably be required to complete a loan application form. You must provide much more information than you might think, and your ability to provide timely and complete information can mean the difference between getting the loan or not. Using the SBA's Form 4 - Application for a Business Loan as a guide, here is the information you need to provide:
Answer:
  1. Information about your business, including business name and address, your name, type of business, date business established, Tax ID Number (Employer ID Number) or Social Security Number (for a sole proprietorship)
  2. Number of employees, now and if the loan is approved
  3. The name and information about your business banker
  4. Use of proceeds (amounts for all applicable items, and total):
    • land acquisition,
    • new construction/expansion/repair,
    • acquisition or repair of machinery and equipment,
    • purchase inventory,
    • working capital (including accounts payable),
    • acquisition of existing business,
    • to pay off an existing loan.
  5. Information about your current, previous, and pending business debt, including SBA loans and other government debt
    • Borrower's name
    • Lender name and information
    • Original amount of loan
    • Date of Application
    • Present balance
    • Rate of interest
    • Maturity date
    • Monthly payment
    • Security provided
    • Loan Status (whether the loan is current or past due or paid off)
    • Outstanding balance
    • If loan resulted in a loss to the government or other lender, amount of the loss
  6. Information about the management of the business. For 100% of the ownership, you must include name and address and percentage owned. You may also be required to provide demographic information (race, ethnicity, veteran status, gender); this information can help the bank determine if you qualify for any special SBA loan programs. A resume of each executive, board member, and other key employees may also be requested.
  7. Personal and financial information about all shareholders (with 20% or more of ownership), officers, partners, owners, including a personal financial statement.
  8. Detailed information about assets being presented as collateral. For example, a legal description of real estate, serial numbers/id numbers for all large value machinery, equipment, furniture and fixtures, inventory records, accounts receivable aging reports. and other records as required.
  9. A brief history of the company and the benefits that it will gain from the funds.
  10. One to three years of projected financial information on the business, showing the effects of the funds.
  11. Finally, you will be required to provide information about the financial history of the business for the past three years, if possible, including income tax returns balance sheets, and income statements.

Some of this information may be provided in your business plan, but make sure it is available somewhere to your lender or the SBA.

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