Chef Adriana Grub Owner of Chef Grub in Chula Vista, CA

There are 6 items you need to complete a small business loan application. We understand how overwhelming compiling the necessary documentation can be. So we’ve highlighted these documents for you!  Below are the 6 documents lenders require:

1. Identification

Lenders will ask for a form of government-issued photo identification like a driver’s license, passport, or military identification card. For reference, Accessity also accepts a matricula consular issued by the Mexican government.

2. Bank statements (personal and business)

The monthly balance of your bank statements shows lenders you have enough to make the monthly loan payment. This amount is usually after paying off all your monthly debts and expenses. It is important to deposit your sales or services and cash income in the business bank account. This way, the lender will be able to see your real income. Check out this helpful article from Intuit on where to find your bank statement and what a bank statement commonly includes.

3. Tax returns (personal and business)

Lenders use your personal tax return to review your household’s annual income and the business tax return to see the profitability of the business. The larger the loan amount you request, the more likely you will be asked to provide at least 2 years of tax returns to see the trends of the business over time.  The IRS has many easy-to-understand articles on its website where you can find information on how to understand your taxes.

4. Financial statements

Your lender will request recent financial statements if you’ve been in business for more than a year. This includes the profit and loss statement and balance sheet. These will show your income and expenses and your assets and liabilities in your business, respectively.  It’s good to keep your monthly financial accounts separate from your bank statements to see trends in income and individual expenses over time. Financial statements can be challenging to put together. If you want help or support, reach out to your local SCORE or Small Business Development Center office and a counselor or expert can sit with you one-on-one to give feedback and answer questions – free of cost!

5. Business plan and financial projections

If you’ve been operating your business for less than a year, the lender may require a business plan including your operations and marketing plan, and at least one year of financial projections. If you don’t have any of these, our partners at the Small Business Development Center or Women’s Business Center can provide you with free advice to help you prepare the documents.

6. Miscellaneous

Other types of documents that a lender may request include a lease agreement if you are renting a new location. A purchase agreement may also be requested if you are seeking a loan to buy a business.  In addition, a copy of the title and registration for any vehicles you may be using as collateral for the loan.

Your credit report will also be pulled as part of completing your loan application.

If you have any questions or doubts about the documentation required for your loan application, do not hesitate to ask! Contact Accessity with questions to help you prepare a strong loan application. We’re here to help.

This information is shared for educational purposes only. Please consult legal, tax, credit, or financial experts for specific guidance.