We've provided an easy-to-understand application checklist for the SBA 504 loan, detailing the most commonly required paperwork and documentation necessary for borrowers.
Application Checklist
When applying for a 504 loan, you'll need to provide the CDC and your lender with a very wide range of documentation. We have included the most commonly required documents below.
Business tax returns for the previous three years
Personal tax returns for the previous three years
Personal history statement
Personal financial statement
Personal budget analysis
Business financial statements for the previous three years
Business debt schedule
If you are applying for a loan for a hotel or motel, you will need:
Revenue and expenses breakdown for the past year (month to month)
Occupancy percentage and average daily rate information for the previous year (month to month)
Occupancy percentage and average daily rate for the area
Your hotel projection worksheet
Interim financial statement (signed and dated, and including balance sheet and income statement dated within the previous two months)
Accounts receivable aging (dated within the previous two months)
Accounts payable aging (dated within the previous two months)
Complete business plan
One year of financial projections with assumptions
Purchase agreement
Written estimate from a contractor if the loan is for construction
If this is a franchise, you will need a letter of intent from the franchisor and a FUOC and franchise agreement
If you are buying another business, also include:
The business owner's tax returns for the previous three years
Interim finance statement dated within the last 60 days
Signed purchase agreement with cost breakdown, amendments, etc.
If you are using gift funds, you will need to provide a gift letter
Previous government financing schedule
Environmental impact questionnaire
Application certification an authorization
Documents pertaining to the ownership of other businesses and their finances (if applicable)
Copy of loan agreement and SBA authorization if you have another SBA loan
If you are refinancing a loan, you will need:
Copy of the original debt documentation
Your original purchase agreement, including settlement sheet, etc.
Lienholder information