The Application: Understanding What Documents are Needed to Close an SBA Loan
- Financial Statements – Have personal and business financial records ready, including tax returns, balance sheets, and income statements.
- Legal & Collateral Documents – Provide business formation documents, licenses, property deeds, equipment lists, and UCC lien searches if required.
- Insurance Requirements – Show proof of liability, property, workers' comp, and possibly life insurance to meet lender conditions.
Congratulations, on being approved for an SBA loan! However before you can receive the financing your lender will likely require some documents to close the loan. It's important to have these materials ready in advance to ensure a closing process.
Personal Financial Statements
Make sure you have the financial statements for all owners with a 20% or greater ownership stake. This includes balance sheets, income statements, income tax returns and personal financial profiles.
Business Financial Documents
On the business side of things it's important to have your most up to date balance sheets, income statements, business tax returns, accounts / agings and other financial records available for the lender as part of their underwriting process.
Legal Paperwork
You'll need to provide all documents filed for your business such as articles of incorporation, operating agreements, licenses, fictitious name certificates, EIN confirmation and so on.
Collateral Details
If there is any collateral or personal guarantees securing the loan you will need documentation such, as property deeds vehicle titles equipment/inventory lists appraisals UCC lien searches and more.
Insurance Requirements
To proceed with your loan application it is important to provide proof of business insurance coverage. This includes liability, property hazard, workers compensation and any other relevant policies that may be necessary. In some cases life insurance might also be required for loan guarantees.
Please review the closing checklists thoroughly. Reach out to your lender if you have any questions or need clarification, on any requirements specific to your loan. It is crucial to be prompt and responsive in providing all the documentation, for a SBA loan closing process.
