SBA Loan Process and Timeline: An Insider Look at Every Stage

After selecting an small business administration loanword program that ’ south of concern to you, you ’ ll motivation to find a lender who is willing to work with you on the loan. major banks like Bank of America and Chase are among some of the circus tent SBA lenders .
Fundera has directly relationships with several SBA preferred lenders. If you choose a chopine like Fundera, you will have a consecrated loan specialist to help you from start to finish and navigate any bumps in the process .
The first thing that your lender or loan specialist will ask you for is paperwork. Gathering all the want paperwork for your SBA loanword software can take weeks, even for a very organized business owner .
here ’ s a summary of what you ’ ll need to provide for an SBA loanword application :

  • Personal background statement (including previous addresses, names you’ve used, criminal records, educational background, etc.)
  • Your resume (and the resumes of any business partners and co-owners you may have)
  • Business loan request letter or a business loan proposal
  • Use of loan information (how you intend to use the loan—is it to buy equipment? Purchase another company? Buy real estate?)
  • Time in business and business size (how old and how large is your company?)
  • Personal credit report (both for you and any co-owners/business partners)
  • Business credit report (the credit standing of your company, if you’re already in business)
  • A business plan (including financial projections as well as qualitative goals for your company)
  • The last two to three years of personal and business income tax returns
  • The last two to three years of financial statements (P&L statements, balance sheets, and debt schedules if applicable)
  • Collateral (if applicable)
  • Legal documents (business licenses, articles of incorporation, contracts with suppliers/vendors, franchise agreements, and leases for commercial vehicles or real estate, etc.)

There ’ s a good gamble there will be more paperwork required—this is likely equitable a start. This is why most business owners take up to a calendar month or more to gather paperwork. A Fundera loanword specialist can help walk you through precisely what you need to get fix.

Some of these documents, like credit reports, don ’ metric ton need to come neat from you. The lender can pull credit reports based on your personal and business data.

Along with submitting paperwork, you ’ ll necessitate to fill out the basic application forms required by the lender and the SBA. The SBA, for model, requires all 7 ( a ) loanword applicants to fill out SBA Form 1919, SBA Form 413, and SBA Form 912 .
These forms require detail fiscal and legal information and can take a few days to complete. You might need to reach out to your business lawyer or accountant for help. The bank can besides clarify what all the questions on the shape mean .

source :
Category : Finance

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