At Central Valley Community Bank we are here to help you with your business financing from A to Z. Part of that process includes simplifying the lending process by being prepared in advance to keep both you and your business on the right track. Most business loan applications require the same type of documentation. It’s always a good idea to speak to a lending officer upfront to make sure that you are gathering all the right information before you begin the business lending process.
To help you with this process, here’s a general checklist of items required for most business loan applications:
Loan Application Form
Loan applications vary by program, but most request the same information. You should be prepared to answer the following questions and provide the following documentation.
- What is the purpose of the loan?
- How will loan proceeds be used?
- What other business debt do you have? Who are your creditors? What are the terms?
- Who are the owners of your business and their ownership percentages?
- What other business ownership and affiliations are you involved with?
- What collateral if any are you intending to be secured for this loan?
- If the loan proceeds are to be used to purchase equipment please list the piece(s) of equipment. Example: computers, tractor, etc.
- Provide describe the nature of your business?
- Date Business Established?
- Type of Business, Legal Ownership?
- Length of time under current management?
Business Financial Status:
- What are your annual gross revenues for the last 3 years?
- What are your business’ Assets, Liabilities, and Income & Expenses?
Legal Documents (a copy of which will be required, as appropriate):
- If DBA or Corporate DBA copy of Fictitious Name Statement
- Articles of Incorporation (if applicable)
- For Non-Profit, tax-exempt corporations one of the following: Printed verification of tax exemption from IRS Website or Copy of IRS Ruling Letter of Tax Exemption 501© (3) letter
- For Limited Liability Partnerships copy of Partnership Agreement
- For General Partnerships copy of General Partnership Agreement
Personal Background and Financial Statement:
- You will be requested to provide personal information, including background details, in addition to business information
- Your will be required to complete a Personal Financial Statement from detailing your personal financial position
Business Financial Statements and Projected Financial Statements
- This is important proof that you can pay back the loan. Include a detailed, one-year projection of income and expenses and how you expect to achieve this projection.
Income Tax Returns:
- Include signed personal and business (if applicable) federal income tax returns for your businesses’ principals for the previous three years.
Loan Application History
- If you applied for a loan in the past, it is important to show that you did (when, where, and how much was requested).
- Some business loan applications require evidence of management or business experience, particularly for loans that can be used to start a new business.
- Include your resume and one for other pertinent partners.
- Most business loan programs require a sound business plan. The business plan should include a complete set of projected financial statements, including profit and loss, cash flow and balance sheet.
- For more information and to access a Business Plan Template, visit SCORE.
Every document on your checklist will be important, and while this isn’t a full list, it is a glimpse of some of the documents that will help you process your business loan in a timely manner.
Have questions? Need additional help? Please don’t hesitate to contact your local branch to determine if a loan or line of credit is right for your business.