Who can qualify for an SBA loan?
For 7(a), a business must operate for profit in the United States, meet SBA size and business-type requirements, be creditworthy, and demonstrate repayment ability. The credit-elsewhere requirement also applies. A lender reviews the full request; meeting one requirement does not establish eligibility.
504 has its own eligibility and economic-development requirements and focuses on eligible fixed assets. Start by identifying the business activity, ownership, location, and intended use of funds so the appropriate program can be evaluated.
What do lenders look at?
Prepare to explain how the business earns revenue and what will change after funding. A business acquisition, for example, should explain the buyer’s experience and the transition from the seller. A property purchase should show how ownership costs fit into operations.
Be ready to discuss existing debt, available cash, ownership, and credit history. A single advertised credit score or revenue figure cannot tell you whether a particular transaction will be approved.
Documents to start organizing
This is a preparation list, not a complete or universal application requirement. The lender will specify the documents, reporting periods, and applicable SBA forms.
- Business overview: legal name, location, ownership, operating history, and financing purpose.
- Financial picture: business tax returns, current profit-and-loss statement, balance sheet, and existing debt schedule.
- Owner information: relevant experience and personal financial information requested during the application.
- Project evidence: purchase agreement or letter of intent, property details, equipment quotes, or construction budget.
- Repayment plan: projections with explanations for material changes in sales, costs, staffing, or debt payments.
- Available investment: amount and source of funds, including proposed seller financing or other borrowed funds.
How to prepare for the first conversation
A brief overview is enough to start: what you want to finance, the estimated project cost, the business location, your available investment, and your target timeline. Flag signed contracts or upcoming deadlines early.
Use this website’s contact form for that overview. Tax returns, account statements, Social Security numbers, and other sensitive records should be shared only through an appropriate document-submission process arranged after we connect.