Posts tagged Paperwork
SBA 7(a) Paperwork Explained: Draft Authorization

The Draft Authorization is a living document and a specific contract between your lender and the SBA. It’s a written agreement providing the terms and conditions under which SBA will guarantee your business loan, and will outline the specific conditions which must be met to keep the SBA guaranty. The draft authorization can be considered a “map” to your loan -- a tool, a guide, and a reference.

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SBA 7(a) Paperwork Explained: Form 159

While Form 159, “Fee Disclosure Form and Compensation Agreement,” is only required for about a third of SBA loan applicants, you definitely want to be sure that if you need it, you have it – and it’s filled out correctly! Luckily, it’s one of the simplest SBA forms, but because it seems so simple (it’s mostly made up of signature blocks), a whopping 40% are found with errors after being submitted. And if you submit SBA Form 159 incorrectly, you’ll be risking your loan guarantee.

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SBA 7(a) Paperwork Explained: Business and Affiliate Financial Statements

In addition to required forms that the SBA supplies, you and your business affiliates need to provide financial statements for your business. This helps demonstrate your ability to repay the loan. In your paperwork, you should include a current (dated within 90 days) financial overview statement, as well as financial statements for the past three years.

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SBA 7(a) Paperwork Explained: SBA Form 912

When you're applying for an SBA 7(a) loan, one of the forms you'll have to fill out is the SBA Form 912. The SBA uses Form 912 as a statement of personal history to help determine the your eligibility for a loan. This form applies no matter what type of SBA loan you’re getting. Some lenders require applicants to fill out this form regardless of criminal history, while others only require it if you indicated that you have a criminal record in one of the other forms in your loan application paperwork.

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SBA 7(a) Paperwork Explained: Form 1920

On SBA Form 1920, the lender must provide information about the loan terms, how the funds will be used, and more. This form helps the SBA make the final decision about whether to guaranty your loan, and about how the loan paperwork will be processed. Even though you aren’t personally responsible for this form, getting cozy with the details of this form can help you understand how the SBA decides whether to approve your proposal or not.

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