Gather your documents and prepare for lender’s questions
State and local economic development agencies as well as numerous nonprofit organizations provide low-interest loans to small business owners who may not qualify for traditional commercial loans.
Here’s what you’ll need to apply fo a small business loan and some questions your lender may ask you.
Documents Needed for Small Business Loan Applications
Keith Brofsky, www.nextavenue.org
While every loan program has specific forms you need to fill out and documents you need to submit, you will likely need to submit much of the same information for different loan packages. Before you start applying for loans, you should get some basic documentation together. The following are typical items that will be required for any small business loan application:
- Personal Background: Either as part of the loan application or as a separate document, you will probably be asked to provide some personal background information, including previous addresses, names used, criminal record, educational background, etc.
- Resumes: Some lenders require evidence of management or business experience, particularly for loans that are intended to be used to start a new business.
- Business Plan: All loan programs require a sound business plan to be submitted with the loan application. The business plan should include a complete set of projected financial statements, including profit and loss, cash flow and a balance sheet.
- Personal Credit Report: Your lender will obtain your personal credit report as part of the application process. However, you should obtain a credit report from all three major consumer credit ratio