Business Loans
SBA 504 Loan Checklist and Guide
A Complete Step-by-Step Resource to Help You Prepare and Submit Your SBA 504 Loan Package
- Dileep K Nair
- July 9, 2025
Table of Contents
Applying for an SBA 504 loan involves more than just submitting a standard form. It requires thoughtful planning, complete documentation, and a clear understanding of how the loan is structured.
This guide is designed to help you gather and organize the required information for a successful loan submission.
The SBA 504 loan is a powerful financing tool for small businesses looking to purchase commercial property, renovate existing buildings, or acquire long-term equipment.
However, the application process can be complex and often involves multiple parties, including a Certified Development Company (CDC), a bank, and the SBA.
This page provides a detailed checklist and guidance on every part of the loan package.
Whether you’re a first-time applicant or working with a loan advisor, this guide will help you stay organized and prepared.
📄 Download the Full Checklist as a PDF
📌 Section 1: Project Details
Your project is the foundation of your loan application. Be ready to explain what you are financing and how it will benefit your business.
1. Real Estate Purchase Agreement or Option Contract
If you plan to buy land or an existing building, include a signed purchase agreement. It must be current, clearly show the purchase price, and contain all agreed-upon terms. If you’re still negotiating, an option to purchase agreement is acceptable during early stages.
2. Construction Plans and Contractor Estimates
If your project involves construction or renovation, provide detailed construction plans and at least two signed cost estimates from licensed contractors. These should be written on company letterhead and include itemized costs.
3. Equipment Quotes
For equipment purchases, submit vendor-issued price quotes. Each quote should specify the model, features, delivery terms, and installation costs if applicable.
4. Appraisal and Environmental Reports
If you are purchasing or refinancing real estate, a commercial appraisal from a certified appraiser is required. An environmental report (Phase I or Phase II) may also be needed, especially for older buildings or properties with industrial history.
5. Lender Participation
Identify the commercial bank or credit union that will provide 50% of the financing. Include their name and signed intent to participate. This partner is essential to completing the 504 loan structure.
👥 Section 2: Business and Ownership Information
The SBA and lenders need to fully understand your company and who controls it. Accurate ownership and management details are essential.
1. Business Profile and Company History
Provide a written summary of your business. Include when it was founded, what it does, how it serves customers, and your current operating status. If applicable, describe key milestones, growth patterns, and future goals tied to the 504 project.
2. Resumes of Owners and Key Managers
All owners with at least 20% ownership must submit a resume. Highlight your professional background, education, and experience in your industry. Lenders want to know you have the expertise to manage the business.
3. Personal Background Information (SBA Form 912)
Every major owner must complete this form. It includes questions about citizenship, criminal history, and other legal matters. Answer honestly. Disclosure is critical—even if the issue happened long ago.
4. Franchise Documents (if applicable)
If your business is a franchise, submit the franchise agreement and the most recent Franchise Disclosure Document (FDD). This ensures transparency in brand operations.
5. Corporate Documents
Submit legal documents based on your business type:
- Corporations:Articles of Incorporation, bylaws, board resolutions
- Partnerships:Executed partnership agreement
- LLCs:Articles of Organization and Operating Agreement
💼 Section 3: Financial Statements and Projections
A strong financial profile is key to loan approval. These documents help lenders evaluate your business’s ability to repay.
1. Historical Business Financials
Provide full profit and loss statements and balance sheets for the last three years. These should reflect actual financial performance and match your business tax returns.
2. Interim Financial Statements
Prepare year-to-date statements—typically covering up to the last 90 days. These include an updated profit and loss (P&L) and balance sheet. Also provide aged accounts receivable and accounts payable reports, which show how you manage cash flow.
3. Business Tax Returns
Submit federal tax returns for the past three years for your business. Ensure they are signed and match financial statements.
4. Personal Tax Returns
Each owner with 20% or more equity must submit three years of personal tax returns. This helps lenders understand your total financial position.
5. Personal Financial Statement (SBA Form 413)
This form must be filled out and signed by all major owners. Disclose assets (homes, vehicles, investments) and liabilities (mortgages, credit cards, loans). Accuracy is essential.
6. Financial Projections and Assumptions
Prepare a projected income statement covering two years. Include a detailed list of assumptions (such as expected sales growth, customer expansion, or cost savings). If your business is a startup, also include a 12-month cash flow projection.
7. Notes Payable Schedule
List all current debts:
- Lender names
- Loan balances
- Payment terms
- Purpose of loans
- Collateral (if any)
Lenders use this to assess existing obligations and repayment capacity.
🧾 Section 4: Additional Forms and Authorizations
These forms allow the SBA and lenders to verify financial data and background information.
1. IRS Form 4506-T
This authorizes the IRS to share a copy of your tax return transcripts with the SBA and lenders for verification.
2. IRS Form W-9
Used to verify your taxpayer identification number and business entity type.
3. Credit Authorization Forms
All owners and guarantors must authorize the CDC and lenders to pull personal and business credit reports. Poor credit doesn’t automatically disqualify you, but honesty and context matter.
4. SBA Form 160 (Board Resolution)
This document authorizes your business to borrow and sign loan-related contracts. It’s usually required for corporations and LLCs.
5. Schedule of Prior Federal Assistance
If you or your business received previous SBA loans, PPP, EIDL, or any federal financing, list each one. Include dates, original amounts, and current balances.
💵 Section 5: Application Deposit and Timing
Most CDCs require a deposit (commonly around $1,000) to cover third-party costs such as:
- Appraisals
- Environmental assessments
- Title work
- Legal review
This fee is refundable in some cases, depending on the CDC. Confirm their policy in writing.
The full application review process can take 30 to 90 days, depending on the complexity of the project and the responsiveness of the borrower.
✅ Checklist Summary (Copy & Paste Version)
You may also use this short-form checklist internally:
✔ Business description and resumes
✔ 3 years of business and personal tax returns
✔ Year-to-date financial statements
✔ Personal financial statements
✔ Construction bids, purchase agreements, or equipment quotes
✔ Loan application forms and authorizations (Forms 912, 413, 4506-T)
✔ Franchise documents (if applicable)
✔ Board resolution and corporate documents
✔ Environmental and appraisal reports (for real estate)
✔ Notes payable schedule and projections
🔎 Need Help?
Preparing a complete SBA 504 loan package takes time and attention to detail. If you’d like expert assistance reviewing your documents or working with a lender or CDC, we can help.
➡️ Visit our SBA Loan Consulting Services
➡️ Or contact us directly for support tailored to your business
