As the loan enters the closing phase of the SBA 7(a) loan process, the lender requests an additional set of new documents. Whereas the previous document request focused on documents the lender needed to evaluate the borrower and business, this set mostly includes functional business documents as the loan moves toward completion.
Commonly Requested Documents
Exactly what the lender requests will vary based on the loan. This is the last set of requested documents, so the lender will ask for everything they need to fund the loan but don’t have yet. Here are some documents that are typically requested at this step:
• Current Financial Statements
Considering some time will have passed between the initial document request and this one, the borrower must submit new, as up-to-date as possible financial statements from the borrower and the business.
• Insurance
The borrower must submit copies of the business’s insurance policies. The lender usually requires robust insurance coverage on the business, including insurance on the business and its assets, the property (if applicable), and workman’s compensation insurance. Additional types of insurance may be required – it depends on the business.
• Licenses
The borrower must submit copies of any licenses or certifications the business has/needs.
• Equipment List
The borrower must submit a list of all of the business’s notable pieces of equipment and their estimated values. For example, for a convenience store this could include fridges, shelves, and fryers/ovens.
• SBA Forms
The borrower must submit a completed SBA Form 1919 (Borrower Information). Additional SBA forms may be required depending on the loan.
