Guide · Borrowing

What banks ask for in a small business loan application (checklist)

Most loan applications stall on paperwork, not on the numbers. Here's what banks and SBA lenders usually ask for, why they want each piece, and how to get it ready before you call.

Checked November 12, 2026

The short answer

Expect to hand over three things: proof of what the business has earned, proof of what it owes, and proof of who stands behind it. In practice that means:

Three years of tax returns, business and personal.
Recent financial statements: a profit and loss statement and balance sheet for this year so far.
A debt schedule listing every loan, lease and line of credit.
A personal financial statement from each main owner.
Company documents: formation papers, ownership, and an ID for each guarantor.
Anything specific to the loan: a purchase agreement, quotes, a lease, or projections.

Every lender has its own list, and Bankrate's guide notes the lender should provide you with the exact list of documents it needs. Ask for it on the first call.

The checklist

1. Tax returns

Business returns for the last three years. One bank's checklist asks for 3 years of business tax returns and 3 years of personal returns.
Personal returns for each owner who will guarantee the loan, also usually three years.
IRS Form 4506-C, signed. This lets the lender pull your tax transcripts straight from the IRS. An SBA lender lists it as an authorization allowing your lender to pull official tax transcripts. The lender compares the transcripts with the returns and statements you gave it, so they need to match.

2. Financial statements

Year-end profit and loss and balance sheet for the last three years, if you have them separately from the tax returns.
Interim statements (this year to date). SBA's own submission checklist asks for a current income statement and balance sheet dated as of the same date within 120 days of the file going to SBA. A bank's SBA checklist uses 180 days for its own intake: the P&L must be current within 180 days of your application.
Accounts receivable and payable agings (who owes you, who you owe, and how late) are on some lenders' lists. Ask whether yours wants them.
Business bank statements. Bankrate notes lenders will often ask to see bank statements and tax returns.

Make sure the year-end numbers in your books match the tax returns, or have a short note explaining any difference (for example, depreciation or year-end adjustments made by your accountant).

3. A debt schedule

A one-page table of everything the business owes: lender, original amount, balance today, monthly payment, rate, maturity date and collateral. SBA's checklist requires one for all businesses that reflect long-term debt on the balance sheet, and wants any debt being paid off with the new loan marked. A bank's version asks for all outstanding installment debts, contracts, notes and mortgages payable.

The balances should tie to the balance sheet. A lender who finds a loan on the balance sheet that isn't on the schedule will ask about it.

4. Personal financial statements and guarantees

SBA's checklist requires a personal financial statement from all owners of 20% or more, spouses, and proposed guarantors, dated within 120 days. Many SBA lenders use SBA Form 413 for this.
It lists what you own (home, accounts, retirement savings, other businesses) and what you owe. Lenders use it to judge whether a guarantee has real backing.
Expect to personally guarantee the loan if you own 20% or more. A law firm's summary of SBA's current rules notes it does not require personal guarantees from equity investors with less than 20 percent on a complete change of ownership. Non-SBA banks set their own rules.

5. Company and ownership documents

One bank's checklist lists the certificate of formation or articles of incorporation, the IRS letter assigning your EIN, the operating agreement or bylaws, and a driver's license for each guarantor. Lenders also ask for a list of other businesses the owners control; another bank asks for names and addresses of any subsidiaries and affiliates. SBA asks for those affiliates' financial statements too.

For SBA loans, every applicant also fills out SBA Form 1919, the borrower information form. SBA's checklist says it must be dated within 120 days of submission.

6. Documents for what you're buying

Buying a business: the purchase agreement, the seller's financial statements, and a business valuation. SBA's checklist lists each of these for a change of ownership.
Buying real estate: the purchase agreement. SBA's checklist also covers appraisals and environmental reports, which the lender arranges.
Buying equipment or vehicles: quotes or invoices from the seller.
Your lease, if you rent your space. Bankrate lists a commercial lease agreement among common documents.
Proof of your down payment. For SBA loans to buy or start a business, the buyer puts in at least 10 percent equity injection; lenders ask for bank statements showing where the money came from.

7. Projections and a business plan

SBA's checklist requires cash flow projections which reflect positive cash flow within two years for all new businesses. Established businesses often get asked too, especially when the loan pays for growth. One bank asks for a detailed, three-year projection. Write down the assumptions behind each number; the lender will test them.

A business plan is on some checklists (one bank lists a business plan) and not others. For an existing business, two pages on what the money is for and how it pays itself back is often enough.

Example: a debt schedule

The business and figures are made up. A landscaping company owes on a truck, a piece of equipment and a line of credit:

Lender / type Balance Monthly Collateral Truck loan $48,000 $1,450 2023 truck Equipment loan $112,000 $2,380 Excavator Line of credit $35,000 $290 Receivables (interest only) Total $195,000 $4,120 Annual debt service: $4,120 × 12 = $49,440

That $49,440 a year is what the lender sets against your earnings to test coverage. Add the payment on the new loan, and the bank checks that earnings cover the total. Our DSCR guide walks through that test, and the how much can I borrow calculator shows what your earnings can support.

Example: keeping statements fresh

Dates matter because applications take weeks. Say your interim statements run to December 31, 2026:

Statements dated Dec 31, 2026 File goes to SBA Mar 15, 2027 Age 74 days (within 120) If the file slips to May 15, 2027 Age 135 days (over 120: update them)

Close your books every month, so a fresh set is always days away rather than weeks.

What the lender is really checking

Can the business pay? Earnings against all debt payments, old and new. This is where the tax returns, statements and debt schedule come together.
Do the numbers agree? Returns, IRS transcripts, statements and bank deposits should tell the same story.
What if it goes wrong? Collateral, your personal financial statement and your guarantee.
Will the cash hold up? A 13-week cash flow forecast shows the lender, and you, that the down payment and new payment won't leave you short in a slow month.

How to get ready in a week

Ask the lender for its exact checklist.
Download three years of business and personal returns from your accountant.
Close the books for last month and print a P&L and balance sheet as of the same date.
Build the debt schedule from your loan statements, and check the balances against the balance sheet.
Fill out the personal financial statement for each 20% owner.
Gather formation documents, the EIN letter, the operating agreement and IDs.
Add the documents for what you're buying, and proof of your down payment.

This guide is general information, not financial or legal advice. Lenders can ask for more than what's listed here, and SBA updates its rules, so confirm the list with your lender.

Have the lender's package ready before you call.

Tilo reads your QuickBooks or Xero books and builds a lender package in Excel: summary, profit and loss, balance sheet, debt schedule, a 12-month projection, and receivable and payable agings. It shows your coverage before and after a new loan, and you can share the package with a lender by link. 7-day free trial, then $799 a month.

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Sources

All checked November 12, 2026. SBA's submission checklist is dated May 2024; SBA's rules have changed since (SOP 50 10 8 took effect June 1, 2025), so confirm current requirements with your lender. Bank checklists are examples from individual lenders, not rules for every bank.