SBA Loan Application Checklist

SBA LOAN APPLICATION CHECKLIST

Comprehensive Document Preparation Guide for SBA 7(a) and 504 Loan Applications

Borrower Name: [________________________________]
Lender Name: [________________________________]
Loan Program: ☐ 7(a) Standard ☐ 7(a) Small ☐ SBA Express ☐ 504/CDC ☐ Export ☐ Other: [____]
Requested Loan Amount: $[________________________________]
Prepared By: [________________________________]
Date Prepared: [__/__/____]

APPLICATION OVERVIEW AND TIMELINE

Typical SBA Loan Application Process

Key Tip: The single most common reason for delays is an incomplete application package. Use this checklist to ensure all items are gathered before submission.

SECTION 1. SBA REQUIRED FORMS

1.1 Borrower Forms

☐ SBA Form 1919 — Borrower Information Form

• Required for all 7(a) loan applications
• Collects information about the business, owners, loan request, existing debt, and prior government financing
• Must be completed by the applicant business and signed by an authorized representative
• Download: https://www.sba.gov/document/sba-form-1919-borrower-information-form

☐ SBA Form 912 — Statement of Personal History

• Required for any owner, partner, officer, director, or stockholder with 20% or more ownership who has a criminal history
• Discloses arrests, charges, convictions, and incarceration
• Not required for all applicants — only when there are criminal history matters to disclose
• Note: SBA Form 1919 has replaced Form 912 for standard background disclosures in many situations. Check with your lender.

☐ SBA Form 413 — Personal Financial Statement

• Required for each proprietor, partner, officer, director, and stockholder with 20% or more ownership
• Details personal assets, liabilities, income sources, and contingent liabilities
• Must be current (within 90 days of application submission)
• Download: https://www.sba.gov/document/sba-form-413-personal-financial-statement

☐ SBA Form 159 — Fee Disclosure and Compensation Agreement

• Required if any agent, broker, packager, or referral agent receives compensation in connection with the loan
• Must disclose all fees charged to the applicant

1.2 Lender Forms

☐ SBA Form 1920 — Lender's Application for Loan Guaranty

• Completed by the lender (not the borrower)
• Lender uses this form to apply for SBA's guaranty
• Contains sections for credit analysis, eligibility determination, and loan structure

☐ Lender-specific application form(s): [________________________________]
☐ Credit authorization / consent form
☐ Deposit account application (if required by lender)

SECTION 2. BUSINESS INFORMATION DOCUMENTS

2.1 Entity and Organization

☐ Articles of Incorporation / Articles of Organization / Certificate of Formation
☐ Bylaws (corporations) or Operating Agreement (LLCs)
☐ Partnership Agreement (partnerships)
☐ DBA / Fictitious Name Certificate (if applicable)
☐ Amendments to organizational documents (all)
☐ Certificate of Good Standing (from state of organization — dated within 60 days)
☐ Certificate of Authority / Foreign Qualification (if registered in states other than state of organization)
☐ EIN Assignment Letter (IRS Form SS-4 or CP 575)
☐ Ownership chart / organizational chart showing all entities and ownership percentages
☐ Buy-sell agreements or shareholder agreements (if any)
☐ Stock certificates or membership interest certificates
☐ Meeting minutes or resolutions authorizing the loan application

2.2 Business Licenses and Permits

☐ Federal licenses and permits (if applicable)
☐ State business license
☐ Local/city business license or permit
☐ Professional licenses (for licensed businesses — e.g., medical, legal, accounting, contracting)
☐ Industry-specific permits (health, environmental, alcohol, etc.)
☐ Franchise agreement (if franchise) — including FTC Franchise Disclosure Document (FDD)

2.3 Business History and Plan

☐ Business plan or executive summary (especially for startups and business acquisitions)

• Company description and history
• Products/services offered
• Market analysis and competition
• Management team and key personnel (with resumes)
• Marketing and sales strategy
• Financial projections (12-24 months minimum)
  ☐ Company brochure, website, or marketing materials
  ☐ History of the business (narrative description)
  ☐ List of all business locations

SECTION 3. PERSONAL INFORMATION (For Each 20%+ Owner)

3.1 Identification and Background

☐ Government-issued photo identification (driver's license or passport)
☐ Social Security card or documentation
☐ Date of birth and place of birth
☐ Citizenship or immigration status documentation

• ☐ U.S. Citizen — No additional documentation needed
• ☐ Lawful Permanent Resident — Green Card (front and back)
• ☐ Other — Visa documentation, work authorization
  ☐ Resume or CV for each owner and key management personnel
  ☐ Proof of address (utility bill, bank statement, etc.)

3.2 Personal Financial Statements

☐ SBA Form 413 — Personal Financial Statement (for each 20%+ owner)
☐ Personal tax returns — most recent 3 years (federal and state, with all schedules)
☐ W-2s or 1099s — most recent 2 years (for each 20%+ owner)
☐ Recent pay stubs (if employed outside the business)
☐ Social Security award letters (if applicable)
☐ Pension or retirement income documentation (if applicable)
☐ Verification of other income sources
☐ Personal bank statements — last 3 months (all accounts)
☐ Investment and retirement account statements — most recent
☐ Schedule of personal debts (mortgage statements, auto loans, student loans, credit cards)
☐ Divorce decree or separation agreement (if applicable and affecting finances)
☐ Prenuptial agreement (if applicable)

SECTION 4. BUSINESS FINANCIAL DOCUMENTS

4.1 Historical Financial Statements

☐ Business tax returns — most recent 3 years (federal and state, with all schedules)

• Including K-1s distributed to owners (for pass-through entities)
  ☐ Profit and Loss (Income) Statements — most recent 3 fiscal years

• ☐ Prepared by: ☐ Internal ☐ CPA-compiled ☐ CPA-reviewed ☐ Audited
  ☐ Balance Sheets — most recent 3 fiscal years
  ☐ Statements of Cash Flow — most recent 3 fiscal years (if available)
  ☐ Interim (year-to-date) financial statements — current within 90 days

• ☐ Interim P&L through [__/__/____]

• ☐ Interim Balance Sheet as of [__/__/____]

4.2 Financial Projections

☐ Projected Profit and Loss Statement — 12-24 months (monthly detail)
☐ Projected Balance Sheet — at least 12 months
☐ Projected Cash Flow Statement — 12-24 months (monthly detail)
☐ Assumptions supporting projections (detailed narrative)
☐ Break-even analysis (for startups or business acquisitions)

4.3 Detailed Financial Schedules

☐ Accounts Receivable Aging Report (current)
☐ Accounts Payable Aging Report (current)
☐ Schedule of all existing business debt (for each obligation):

• Creditor name
• Original amount
• Current balance
• Monthly payment
• Interest rate
• Maturity date
• Collateral securing the debt
• Status (current/delinquent)
  ☐ Schedule of fixed assets with depreciation
  ☐ Inventory schedule (aged, if applicable)
  ☐ Schedule of intercompany loans or receivables
  ☐ Payroll summary (number of employees, total payroll expense)

SECTION 5. COLLATERAL DOCUMENTATION

5.1 Real Property (if pledged as collateral or acquired with loan proceeds)

☐ Property address and legal description
☐ Current appraisal (must comply with FIRREA and SBA requirements)

• ☐ Required for commercial real estate loans or loans secured by real property valued at $500,000+
• ☐ Must be completed by a state-certified or licensed appraiser

• ☐ Appraisal age: no more than 12 months old (or 6 months for construction)
  ☐ Purchase and sale agreement (if acquisition)
  ☐ Environmental assessment — Phase I (required for real estate acquired or refinanced with SBA loan proceeds)

• ☐ Phase II Environmental Assessment (if Phase I reveals recognized environmental conditions)
  ☐ Preliminary title report or title commitment
  ☐ Current survey (if required by lender or title company)
  ☐ Copies of existing mortgages/deeds of trust
  ☐ Property tax bills (most recent)
  ☐ Lease agreements (if property is leased to tenants)
  ☐ Zoning confirmation letter
  ☐ Flood zone determination (FEMA)
  ☐ Construction plans and specifications (if construction/renovation loan)
  ☐ Contractor bids and cost estimates (if construction/renovation loan)
  ☐ Certificate of Occupancy (existing building)

5.2 Personal Property (Equipment, Inventory, Receivables)

☐ List of equipment to be purchased (with quotes/invoices)
☐ List of existing equipment to be pledged (with estimated values)
☐ UCC search results (Secretary of State and county level)
☐ Vehicle titles (if vehicles are pledged)
☐ Inventory valuation report
☐ Intellectual property documentation (patents, trademarks, copyrights)

5.3 Life Insurance

☐ Evidence of existing life insurance policies on key owners/guarantors
☐ Application for new life insurance (if required by Lender)

• ☐ Coverage amount: Typically sufficient to cover the outstanding loan balance
• ☐ Collateral assignment of policy to Lender

SECTION 6. LEASE AND CONTRACT DOCUMENTATION

6.1 Real Property Leases

☐ Current lease agreement(s) for all business locations
☐ Lease amendments, extensions, or renewals
☐ Landlord's consent/waiver (if required by Lender — especially for leasehold improvements)
☐ Assignment of lease (if business acquisition includes assumption of lease)

6.2 Key Business Contracts

☐ Major customer contracts or purchase orders
☐ Major supplier/vendor contracts
☐ Management or consulting agreements
☐ Employment agreements for key personnel
☐ Non-compete / non-solicitation agreements
☐ Licensing agreements (software, technology, intellectual property)
☐ Government contracts (if applicable)

6.3 Franchise Documentation (if applicable)

☐ Franchise Agreement (fully executed)
☐ Franchise Disclosure Document (FDD)
☐ Franchisor's approval of SBA financing
☐ Franchisor's addendum to lender (if required)
☐ SBA Franchise Directory confirmation of eligibility

SECTION 7. INSURANCE DOCUMENTATION

☐ Commercial General Liability Insurance — Certificate of Insurance (COI)

• Minimum coverage: $[________________________________] per occurrence

• Lender named as additional insured
  ☐ Property / Casualty Insurance (if real property or equipment collateral)

• Lender named as loss payee / mortgagee
  ☐ Business Interruption Insurance (if required by Lender)
  ☐ Workers' Compensation Insurance (proof of coverage or exempt status)
  ☐ Professional Liability / Errors and Omissions (if applicable)
  ☐ Auto Insurance (if vehicles are pledged)
  ☐ Flood Insurance (if property is in a FEMA Special Flood Hazard Area)

• Required by National Flood Insurance Act (42 U.S.C. § 4012a)
  ☐ Hazard Insurance
  ☐ Key Person Life Insurance — Collateral Assignment to Lender

• Amount: $[________________________________]

• Insured: [________________________________]
  ☐ Builder's Risk Insurance (if construction loan)

SECTION 8. BUSINESS ACQUISITION DOCUMENTS (If Applicable)

(Complete this section if loan proceeds will be used to acquire an existing business.)

☐ Letter of Intent (LOI) or Purchase and Sale Agreement (signed)
☐ Asset vs. Stock Purchase — determination and documentation
☐ Business valuation / appraisal (independent)
☐ Seller's financial statements — most recent 3 years (tax returns and P&L/balance sheet)
☐ Seller's interim financial statements (current within 90 days)
☐ Schedule of assets included in the sale (with values)
☐ Allocation of purchase price (tangible assets, goodwill, non-compete, etc.)
☐ Bill of Sale (draft)
☐ Non-compete agreement (from seller)
☐ Assignment and assumption of contracts, leases, and permits
☐ Seller's representation regarding liabilities and contingencies
☐ Transition plan / management succession plan
☐ Due diligence report or summary
☐ Escrow/holdback provisions (if any)

SECTION 9. DEBT REFINANCING DOCUMENTS (If Applicable)

(Complete this section if loan proceeds will be used to refinance existing debt.)

☐ Payoff letter(s) from existing creditor(s) — with per diem interest
☐ Current loan agreement(s) being refinanced
☐ Copy of existing promissory note(s)
☐ Copy of existing security agreement(s)
☐ Copy of existing mortgage/deed of trust (if applicable)
☐ UCC search showing existing filings against borrower
☐ Explanation of why refinancing is necessary / SBA eligibility for refinancing
☐ Proof that existing debt was not originally an SBA loan (SBA-to-SBA refinancing has special rules)
☐ Evidence that refinancing will provide a substantial benefit to the borrower (e.g., lower payments, better terms)

SECTION 10. ADDITIONAL SBA-SPECIFIC REQUIREMENTS

10.1 Credit Elsewhere / Inability to Obtain Credit

☐ Statement explaining why the borrower cannot obtain credit on reasonable terms from non-SBA sources
☐ Evidence of declined loan applications from other lenders (if available)
☐ Lender's credit analysis demonstrating the need for the SBA guaranty

10.2 Equity Injection (For Startups and Acquisitions)

SBA requires the borrower to contribute a minimum equity injection (typically 10-30% of total project costs):

☐ Evidence of source of equity injection funds:

• ☐ Bank statements showing available cash
• ☐ Gift letter and gift donor's bank statement (if gift funds)
• ☐ Sale of personal assets (documentation of sale)
• ☐ Outside investor contribution (documentation)
• ☐ Standby seller note (with SBA-approved subordination terms)
• ☐ Other: [________________________________]

10.3 Change of Ownership Requirements

If the business is undergoing a change of ownership:

☐ SBA Form 1919 for new and existing owners
☐ IRS Form 8594 — Asset Acquisition Statement (for asset purchases)
☐ Evidence of fair market value for the transaction
☐ SBA approval for the change of ownership (if business has an existing SBA loan)

10.4 Construction/Renovation Requirements (If Applicable)

☐ Construction plans and specifications (stamped by licensed architect/engineer)
☐ Detailed construction budget / cost breakdown
☐ General contractor bids (minimum 2-3 bids)
☐ General contractor's license and insurance certificates
☐ Construction timeline / schedule
☐ Building permits (or application status)
☐ Zoning approval
☐ Construction disbursement schedule
☐ Performance and payment bonds (if required)

SECTION 11. AUTHORIZATION AND CONSENT FORMS

☐ Credit Report Authorization — Signed by each 20%+ owner
☐ IRS Form 4506-C — Request for Transcript of Tax Return — Signed by Borrower and each 20%+ owner (allows Lender/SBA to verify tax return information directly with IRS)
☐ Background Check Authorization — Signed by each 20%+ owner
☐ Corporate/Entity Resolution or Consent — Authorizing the loan application, execution of loan documents, and pledge of collateral
☐ Spousal Consent (if applicable under state community property laws — CA, TX, AZ, NV, NM, WA, ID, WI, LA)
☐ Third-Party Authorization (if using a broker, packager, or agent)

SECTION 12. COMMON DEFICIENCIES AND TIPS

12.1 Most Common Reasons for Application Delays

1. Missing or unsigned SBA Form 1919 — Ensure all fields are completed and the form is signed by an authorized person.
2. Outdated financial statements — Interim financials must be within 90 days of submission.
3. Incomplete personal financial statements (SBA Form 413) — All assets and liabilities must be listed; leave no blanks.
4. Missing tax returns or K-1s — Provide all schedules and K-1s for each year.
5. No equity injection documentation — For startups and acquisitions, source of equity must be verified.
6. Missing corporate authority — Board resolutions or member consents are required.
7. Inadequate business plan/projections — Especially for startups; projections must be detailed and reasonable.
8. Outstanding tax liens — Resolve or have an IRS payment plan in place before applying.
9. Criminal history not disclosed — All criminal matters must be disclosed on SBA Form 1919/912.
10. Insufficient insurance — Obtain insurance quotes before closing to avoid delays.

12.2 Tips for a Smooth Application Process

☐ Start gathering documents at least 4-6 weeks before the intended application date
☐ Organize documents in the order of this checklist using clearly labeled folders
☐ Ensure all signatures are original or properly notarized (electronic signatures are increasingly accepted)
☐ Keep copies of everything submitted to the lender
☐ Respond to lender requests for additional information within 48 hours
☐ Maintain communication with your loan officer throughout the process
☐ Do not make major financial changes (new debt, large purchases, job changes) during the application process

CERTIFICATION

I certify that the documents listed above have been gathered, reviewed, and organized for submission. I understand that this checklist is a guide and that the lender may require additional documentation based on the specific circumstances of the loan application.

Prepared By: [________________________________]
Title: [________________________________]
Date: [__/__/____]
Signature: ______________________________

Reviewed By (Lender): [________________________________]
Date Received: [__/__/____]

SOURCES AND REFERENCES

• SBA 7(a) Loan Program Overview: https://www.sba.gov/funding-programs/loans/7a-loans
• SBA 504 Loan Program Overview: https://www.sba.gov/funding-programs/loans/504-loans
• SBA Form 1919 (Borrower Information Form): https://www.sba.gov/document/sba-form-1919-borrower-information-form
• SBA Form 1920 (Lender's Application): https://caweb.sba.gov/library/pdf/Form1920_Lenders_Application.pdf
• SBA Form 413 (Personal Financial Statement): https://www.sba.gov/document/sba-form-413-personal-financial-statement
• SBA Form 912 (Statement of Personal History): https://www.sba.gov/document/sba-form-912-statement-personal-history
• SBA SOP 50 10 (Lender and Development Company Loan Programs): https://www.sba.gov/document/sop-50-10
• 13 CFR Part 120 (SBA Business Loans): https://www.law.cornell.edu/cfr/text/13/part-120
• 13 CFR Part 121 (Small Business Size Standards): https://www.law.cornell.edu/cfr/text/13/part-121
• SBA Size Standards Table: https://www.sba.gov/document/support-table-size-standards
• IRS Form 4506-C: https://www.irs.gov/forms-pubs/about-form-4506-c

This SBA Loan Application Checklist is provided by ezel.ai for use by licensed attorneys, SBA lending professionals, and borrowers. Requirements may vary by lender, loan program, and transaction type. Always confirm specific requirements with your SBA lender. This document does not constitute legal advice.