In the midst of the coronavirus pandemic, many business owners are looking for financial assistance to make ends meet. As you may have heard, the Small Business Administration (SBA) is now offering help to small businesses by providing low-interest loans. As we’ve written previously, even if you don’t need a loan now, you might later on. So NOW is the time to familiarize yourself about the process (our blog on that is here).
We are tracking the changes made to the application process by the Small Business Bureau, but please understand at times this guide might not be fully updated to match their new changes.
Two ways to apply for a small business loan:
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By mail: Fill out the forms and mail them.
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Apply online (recommended as it is faster and easier).
Prepare your documents.
Take a few moments to review the information below and get your documents ready before you start the process. Remember that the loan application is an official, financial document – so it might look overwhelming at first. Here are some tips to help you get prepared and through the process.
Information you’ll need before you fill out the application:
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Business Information: business name, Federal E.I.N, address, and contact information
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Owner Information: owner name, SSN, contact information
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2019 Tax Return OR your most recent Income Statement & Balance Sheet
Where to apply online:
Go to https://disasterloan.sba.gov/ela/Account/Login/ (remember that there are a lot of business owners on this website right now, so it will likely be slow during the day—you might want to try off-hours).
The online application walks you through the form step by step. Remember to use the save button in the top right corner.
How the main SBA Form 5 Loan Application works:
You’ll want to register first, and then start your loan application. Here is information about what to expect for the main form that you’ll fill out.
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SBA Form 5 – Loan Application:
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What to Expect
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Company information (address, federal EIN, phone numbers, ownership information)
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Yes/No questions about whether you’re involved with court proceedings, defaulted on prior loans, etc.
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Other forms that you’ll be asked to fill out in the loan process:
The loan application will provide you a list of any remaining forms. Here is a summary of what to expect.
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SBA Form 413D – Personal Financial Statement (for each owner):
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What to Expect
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This form contains information about your personal finances (not the business)
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You will include assets like bank balances and real estate you own.
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You will include liabilities like mortgage payments, credit card balances, loan information.
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SBA Form 2202 – Schedule of Liabilities
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What to Expect:
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List out the payables for your business, including credit cards, loans, mortgages, etc.
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IRS Form 4506-T – Request for Transcript of Tax Return (for your business)
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What to Expect:
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This form contains information about your business (not your personal finances)
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Tax return information (business name, address, federal EIN)
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IRS Form 4506-T – Request for Transcript of Tax Return (for each owner)
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Tax return information for you personally (name, address, SSN) as well as any other owners of your business
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SBA Form 413D – Personal Financial Statement (for each owner)
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What to Expect
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This form contains information about your personal finances (not the business)
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You will include assets like bank balances and real estate you own.
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You will include liabilities like mortgage payments, credit card balances, loan information.
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ODA Form P-019 – Economic Injury Disaster Loan Supporting Information
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What to Expect:
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This form asks for total Gross Revenues and total Cost of Goods Sold expense over the last 12 months.
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It also asks for a listing of any other sources of compensation for the business
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For our clients if you get stuck, feel free to give us a call at 757-327-7040. We can help identify where to get information and may be able to get you an answer faster than the SBA Message Center. We’ll try our best to answer your question and, if we can’t, we’ll refer you to the SBA Message Center.
If you need help getting your books in order, let us know (we are running an expedited program for business owners who need to get their 2019 books in order to apply for loans. If your books are already in order, you should be fine to simply apply for a loan.)