What goes into an SBA 504 loan application?
Short answer
SBA Form 1244, a credit memo, project cost documents, an appraisal, the third party lender's letter, personal financial statements, credit reports and business financials. The Certified Development Company (CDC) assembles the package. Source: SOP 50 10 8.1, Sec. C, Ch. 1, Para. F.2.
The CDC builds the package around SBA Form 1244. SOP 50 10 8.1, Sec. C, Ch. 1, Para. F.2 (about pp. 258-262) lists the contents.
The application and credit
- SBA Form 1244, with 100% of direct and indirect ownership listed.
- The CDC's credit memorandum.
- The third party lender's letter of intent or term sheet, including why it will not finance the entire project.
- The third party lender's underwriting analysis, when total project costs are at least $5,000,000.
Project costs
- Contractor costs, vendor quotes and an itemized list of professional fees.
- Full or partially executed purchase agreements.
- An independent appraisal for project real estate.
- Environmental analysis, if it applies.
Owners and guarantors
- SBA Form 413, signed and dated within 90 days, with personal tax returns for the last year.
- Credit reports dated within 90 days.
- Proof of U.S. National status, if it applies.
Business financials
- Balance sheets, income statements and tax returns for 3 years, or 2 under the alternative size standard.
- A balance sheet and income statement dated within 120 days, with receivables and payables agings.
- Projected income statements where appropriate. A new business adds a monthly cash flow for its first 12 months or 3 months past breakeven, whichever is longer.
- A debt schedule, a schedule of prior government financing, and affiliate financials.
Not required until closing
IRS transcripts and complete verification of financial information (Para. F.2.a.xxiii).
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