Business Loans
SBA 7(a) Loan Checklist and Guide
A Step-by-Step Resource to Help You Prepare and Submit Your SBA 7(a) Loan Application
- Dileep K Nair
- July 9, 2025
Table of Contents
Introduction
The SBA 7(a) loan program is the U.S. Small Business Administration’s primary method for providing financial assistance to small businesses.
This loan program is versatile, offering funding for various business purposes, including working capital, equipment purchases, and real estate acquisitions. Understanding the application process and preparing the necessary documentation are crucial steps toward securing this financing.
This guide provides a comprehensive checklist and detailed explanations to assist you in assembling a complete and accurate SBA 7(a) loan application package.
Whether you’re a first-time applicant or seeking additional funding, this resource will help you navigate the process effectively.
📄 Download the SBA 7(a) Loan Checklist as a PDF
For easy reference and offline use, download this full checklist and guide as a formatted PDF file:
📌 Section 1: Understanding the SBA 7(a) Loan Program
Before diving into the application process, it’s essential to understand what the SBA 7(a) loan entails.
What is an SBA 7(a) Loan?
The SBA 7(a) loan program offers financial assistance to small businesses through loan guarantees provided to approved lenders.
This guarantee reduces the risk for lenders, making it easier for small businesses to obtain financing.
Eligible Uses of Funds
SBA 7(a) loans can be used for:
- Acquiring, refinancing, or improving real estate and buildings
- Short- and long-term working capital
- Refinancing current business debt
- Purchasing and installing machinery and equipment
- Purchasing furniture, fixtures, and supplies
- Changes of ownership (complete or partial)
- Multiple purpose loans, including any of the above
Loan Amounts and Terms
The maximum loan amount for a 7(a) loan is $5 million. Terms and conditions, such as the guaranty percentage and loan amount, may vary by the type of loan.
👥 Section 2: Preparing Your Business Information
Accurate and comprehensive business information is vital for the loan application.
- Business Overview
Provide a detailed description of your business, including:
- Legal name and DBA (if applicable)
- Business address and contact information
- Type of business and industry
- Date established and ownership structure
- Number of employees
- Description of products or services offered
- Business Plan
A well-structured business plan should include:
- Executive summary
- Company description
- Market analysis
- Organization and management structure
- Marketing and sales strategies
- Service or product line details
- Funding request and financial projections
- Ownership and Affiliations
List all owners with a 20% or more stake in the business, including:
- Full legal names
- Social Security Numbers
- Percentage of ownership
- Affiliations with other businesses
💼 Section 3: Gathering Financial Documentation
Financial documents provide insight into your business’s health and ability to repay the loan.
- SBA Form 1919: Borrower Information Form
This form collects information about the applicant and its owners, the loan request, existing indebtedness, and other relevant details .
- SBA Form 912: Statement of Personal History
Required for each owner with a 20% or more stake, this form addresses personal background information.
- SBA Form 413: Personal Financial Statement
Each owner must complete this form, detailing personal assets and liabilities.
- Business Financial Statements
Provide the following:
- Balance sheets for the last three fiscal years
- Profit and loss statements for the last three fiscal years
- Year-to-date financial statements
- Cash flow projections for the next 12 months
- Business Tax Returns
Submit complete federal tax returns for the last three years.
- Personal Tax Returns
Each owner with a 20% or more stake should provide personal federal tax returns for the last three years.
- Schedule of Liabilities
List all current business debts, including:
- Lender names
- Original loan amounts
- Outstanding balances
- Monthly payments
- Maturity dates
🧾 Section 4: Legal and Additional Documentation
To complete your loan application, certain legal documents are required to confirm your business’s legal status and authority to borrow.
- Business Licenses and Registrations
Provide copies of all applicable business licenses, permits, and registrations. These confirm your business is operating legally in your state or locality.
- Articles of Incorporation or Organization
Depending on your business type, include:
- Corporation– Articles of Incorporation and corporate bylaws
- Limited Liability Company (LLC)– Articles of Organization and Operating Agreement
- Partnership– Executed partnership agreement
These documents establish your business’s legal structure and decision-making authority.
- Lease or Deed Agreements
If your business operates from a commercial space, include:
- Lease agreement– Signed lease with terms and duration
- Deed– If you own the property used by the business
If the loan is used to purchase or renovate property, also include the purchase contract or renovation quotes.
- Franchise Agreement (if applicable)
If your business is part of a franchise, submit:
- Signed Franchise Agreement
- Franchise Disclosure Document (FDD)
This helps lenders understand the nature of your business relationship with the franchisor.
- IRS Form 4506-C
This form authorizes the SBA to request your federal tax return transcripts directly from the IRS. It helps them verify the financial information submitted.
✅ Section 5: Checklist Summary
Below is a condensed version of the SBA 7(a) loan application checklist.
Use it as a reference to ensure no required document is missed:
🔹 Business and Ownership Information
- Business description and history
- Business licenses and registrations
- Ownership and affiliations list
- Organizational documents
- Franchise agreements (if applicable)
🔹 Financial Documentation
- SBA Form 1919
- SBA Form 912
- SBA Form 413
- Personal and business tax returns (last 3 years)
- Interim and historical financial statements
- Cash flow projections (12 months)
- Schedule of liabilities
- Personal financial statement
🔹 Legal and Other Supporting Documents
- Articles of incorporation/organization
- Bylaws or operating agreement
- Commercial lease or property deed
- IRS Form 4506-C
- Signed application forms and credit authorization
🕒 Application Timeline and Process
- Document Preparation (1–2 weeks)
Begin by collecting and reviewing all required documentation. Contact your accountant if needed for updated financial statements.
- Lender Selection (2–5 business days)
Use the SBA’s Lender Match Tool or contact your preferred SBA-approved lender directly. Make sure they have experience handling SBA 7(a) loans.
- Application Submission (3–5 days)
Complete the lender’s forms and submit your full package. Ensure all documents are signed and complete.
- Review and Underwriting (1–3 weeks)
The lender will assess your business credit, financials, and collateral. Some lenders can issue decisions faster depending on the loan size and complexity.
- SBA Review and Final Approval (if required)
For larger loans, the lender may forward your application to the SBA for review. This can take an additional 5–10 business days.
- Loan Closing and Disbursement (1–2 weeks)
Once approved, you’ll sign closing documents and receive your funds. Timing depends on how your funds are disbursed (lump sum vs. scheduled).
🧠 Final Tips for a Successful Application
- Be honest and accurate– Incomplete or incorrect information will delay the process.
- Keep copies of all submitted documents– This ensures you’re prepared for questions or follow-ups.
- Ask your lender questions– Every SBA lender may have slightly different forms or preferences. Don’t hesitate to clarify.
- Respond quickly– Once the application is under review, delays often occur when borrowers are slow to provide follow-up documentation.
📞 Need Expert Help?
Applying for an SBA 7(a) loan can feel overwhelming, especially if it’s your first time.
If you’d like support from professionals who understand how SBA loans work, we’re here to assist.
➡️ Learn more about our SBA Loan Consulting Services
➡️ Or connect with us directly to review your loan readiness
