YOUR GUIDE TO A SMOOTH 504 LOAN APPLICATION

SBA 504 loans offer small businesses a solid solution to scale and grow. Below market rates, fully amortized loan terms, and low down payments deliver a trifecta of advantages for purchasing commercial property or heavy machinery and equipment. Of course, the first step to leveraging these benefits is applying. We work to make the loan application process as simple as possible and that starts with helping our clients do some preparation in advance. As with any loan application, you will need to provide a few financial and legal documents, which we’ve broken down in three categories:

Your business and personal financial documents
Fiscal stability is, of course, a critical consideration for any lender. You will be asked for items including personal and company tax returns, personal and company financial statements (less than 90 days old), and projected financial statements for your business, as necessary. These financial documents will provide us with an accurate picture of your company’s financial position and your ability to repay the loan.

Your company information
Your company’s background and how it is structured gives us important insight into your organization. This includes a brief history and description of the company as well as resumes of its principals. You will also need to provide organizational documents depending upon your company’s structure, whether it is an LLC, corporation, or partnership.

Your project details
SBA 504 loans can be used in a number of ways to help you grow your business, so your project parameters need to be defined when you apply. If you plan to use funding to purchase real estate, you will need to provide the property purchase agreement. If there are construction costs associated with your project, an estimate from the contractor will be required. For machinery and/or equipment acquisition, you will need to provide an estimate from the vendor.

We have created a complete loan document checklist for you to download or print for easy reference. It is important that you check the accuracy of each document on this list to keep the application process moving forward smoothly. There are also additional steps you can take to improve your business’ position and increase the likelihood that your loan request will be approved. For example, it’s always a smart move to pay down personal and business debt. Maintain a good credit score and correct any errors that you discover in your credit history before you submit your application. We also suggest having a business plan in place that details your vision and long term goals for your company.

Our team is here to expertly guide you through every step of the loan application process and we are always available to provide advice and answer questions. But knowing in advance what information you’ll need and how you can prepare puts much of the control right in your capable hands.