SBA loan application process

The application process for securing an SBA loan is relatively straightforward, although it does require some work to ensure you follow the process correctly. Follow these steps to apply for an SBA loan: 

1. Find a lender

The first step is to find an SBA-approved financial institution to act as your lender. The SBA keeps a list of lenders by location, so you can search on their website to find lenders near you. 

How to find the right lender

Because SBA loans are administered by lenders, each lender can set its own requirements for borrowers. While you can base your lender search on your physical location, you should also find a lender whose requirements are easy for you to meet. 

Many SBA-approved lenders are big banks or credit unions with whom you may already have a relationship. If you have a business bank account or personal checking account at a bank you enjoy working with, it’s a good idea to look into whether or not they offer SBA loans. 

2. Choose your loan type

There are several different types of SBA loans. Most of them require that you use the loan for a specific purpose. Some popular SBA loans include:

• SBA 7(a) – these are the most popular and common type of loans offered by the SBA. An SBA 7(a) loan can be used for a wide variety of purposes, including working capital, equipment, real estate or even growing an export business. There are several different 7(a) programs that help small businesses get financing for different purposes. You can borrow up to $5 million, depending on which purpose you’re borrowing for. 
• SBA 504/CDC – these loans are meant for small businesses that will use the financing to create jobs or otherwise help their local community through specific community projects. You can borrow up to $5.5 million for real estate, equipment or other major capital projects. 

• SBA microloan – these small loans are meant for businesses that need $50,000 or less for business purposes, including working capital, inventory or other operational expenses.

How to choose the right loan for your business

In order to choose the right SBA loan for your business, you need to understand what each loan can be used for and ensure that these requirements align with your plans to use the money. It’s also important to know how much loan you can afford, meaning you shouldn’t borrow more than you really need. While SBA loans do offer good repayment terms and interest rates and are guaranteed by the government, they can still overwhelm you with debt if you can’t pay them back. 

3. Gather your documents

As with any loan, SBA loans require a variety of different documents as part of the application process. It’s important to make sure you know which documents are required and gather them before you start your application to save yourself time and make sure the process runs smoothly. It’s a good idea to check with your specific lender to see if they have any additional required documents, too. 

What documents and evidence are required

You will typically be asked to provide the following documents when applying for an SBA loan:

• An SBA loan application form – filled out by anyone who has 20 percent or more control of the business.
• Personal financial statement (SBA Form 413) – this form lists your debts, income and assets. 
• Personal financial information – this includes three years of personal tax returns and a list of bank accounts and investments. 
• Personal history – a form that includes your criminal history if you have one.
• Business financial records – including financial statements such as a profit and loss statement and projected finances, as well as any previous loan applications and business tax returns up to the date of your application (preferably at least three years’ worth).
• Business documents – including licenses and any business leases. 
• Personal tax returns – at least three years’ worth for every majority stakeholder (anyone who owns at least 20 percent of the business).
• Business license or certificate – this will show where you do business and that you’re registered with the state where you operate. 
• Business lease – this includes rental agreements or any other leasing agreements, if you have one.
• Business affiliates – a list of your subsidiaries or other business affiliates, if you have any.
• Personal resumes – this will be the resume or CV of any owner with at least a 20% stake in the business. 
• Business plan – this will help the lender determine what you need the money for and how you plan to use it for your business. 

4. Apply for your loan

Once you’ve gathered all the documentation, you can apply for the SBA loan through your chosen lender. They will usually have an online portal for you to log into and submit your application online. Your lender may provide you with an account representative to guide you through the process and ask any follow-up questions they may have. 

Track your application

Once you’ve submitted your application, it can take anywhere from a month to several months unless you apply for an SBA Express loan, which requires a response within 36 hours. You can check the status of your application with your lender through their online portal or through your account representative. 

Once your application is approved, you should receive funding quickly and can use the money to push your business forward.