The Small Business Administration exists to provide coaching, development and low-cost credit to entrepreneurs in order to encourage employment and economic growth. They provide subsidized loans and loan guarantees, grants, assistance with compliance issues and outreach programs to women, veterans, minorities, young entrepreneurs and other disadvantaged groups. They also help connect small business owners to mentors and consultants and provide a number of online tools and educational resources.
Gather information. You will need to prepare a consolidated balance sheet showing your company's assets and liabilities, including detailed information on anything you are able to post as collateral to secure a loan. You will also need to provide a statement of equity and a cash flow statement.
Download needed forms. You can find links to all required SBA loan application forms in the Resources section in this article.
Download the latest version of Adobe Acrobat Reader by visiting www.adobe.com. You will need a recent version in order to see and print SBA Form 4, the loan application form.
Prepare a cover letter to go with your application. Be sure to include an executive summary paragraph to include a section on the requested terms of repayment and how you plan to repay the loan. Also, include a business profile, to include the type of business, product or services, location, history, annual sales, number of employees, competition, customers, suppliers and proposed future operation. Finally, include the resumes of your owners and senior management team.
Fill out Form 4, the Application for Business Loan, Form 4-a, the Schedule of Collateral, Form 413, the Personal Financial Statement, Form 912, the Statement of Personal History and Form 1624, the Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions.
Review specific items for your lender. Your lender may require additional documents, such as lease documents, franchise agreements, purchase agreements, letters of intent, contracts or partnership agreements. You may also need to provide financial statements for the last three years and a current interim financial statement, not more than 90 days old.