Preparing Your SBA Loan Application

June 26, 2025

An image of a person writing in a notebook and using a calculator to represent preparing for for an SBA loan application. in the front right of the image, there is a hand punching numberings into a light grey calculator. then behind that, the other hand is being used to write in a notebook. It's blurry and you can't tell what the person is writing. There is also a laptop keyboard in the top left that's blurry and part of the background.

Preparing Your SBA Loan Application

A smooth and successful Small Business Administration (SBA) loan application process requires taking the right steps and providing all necessary information. Preparing your application thoroughly not only improves your chances of approval but also helps you present a strong case to potential lenders.

Proper preparation is key to demonstrating your financial stability, your ability to repay the loan, and your commitment to your business’s success.

Check Your Credit Rating

Before applying for an SBA loan, it’s crucial to assess your credit rating, as both your lender and the SBA will review it as part of their decision-making process. Your credit score is a key indicator of your financial health and demonstrates to lenders your ability to manage debt responsibly. A strong credit rating increases your chances of securing the loan with favorable terms, while a poor score may lead to higher interest rates or even rejection.

The steps are:

  • Schedule an appointment for a free credit review with a Diamond representative.
  • Your credit score is a numerical representation of your creditworthiness based on the information in your credit report.
  • If you find errors on your credit report, contact the credit bureau in writing to dispute the inaccuracies. They are required to investigate and correct any errors within a reasonable timeframe.

Checking your credit rating regularly helps you stay informed about your financial health and ensures that your credit information is accurate. This knowledge is crucial when applying for loans, mortgages, credit cards, or other forms of credit, as lenders use your credit history and score to assess your creditworthiness and determine loan terms.

Documentation

When preparing your SBA loan application, one of the most important steps is gathering the necessary documentation that supports your financial standing and demonstrates your ability to repay the loan. The SBA and your lender will require a variety of personal, business, and financial documents to assess your application. These documents provide insight into your background, your business’s current status, and your plans for the future. By organizing and presenting these materials in advance, you can streamline the application process and increase your chances of approval.

You’ll need to:

  • Outline your personal background, educational and business experience and your previous addresses going back at least two years.
  • Have an updated business plan so the lender and SBA understands your business and strategy, reasons for applying for the loan, planned goals and objectives.
  • Provide a resume that lays out your employment history, both as a business owner and as an employee. Emphasize evidence of management or business experience, especially if you’re starting a new business.
  • Outline any debts or liabilities.
  • Explain your contribution to the loan and how you intend to make repayments.

Once you’ve collected the information around the history and state of your business, it’s time to locate the financial documents. The SBA and your lender will want to see:

  • Income tax returns and financial statements for the past 3 years.
  • Any legal documents such as business licenses and registrations, copies of contracts with any third parties and commercial leases, depending on what’s required.
  • Any loans you’ve applied for in the past, as well as any applications that may have been declined.

You’ll also possibly need to provide a three-year cashflow forecast.

SBA Forms

There are several forms you’ll need to fill out, depending on the loan you’re applying for. In most cases, you’ll have to complete:

Borrower Information Form (1919)

You need to complete this form when applying for a 7(a) loan and submit it to the SBA participating lender. The SBA is looking to determine your suitability for a loan and needs to conduct background checks, so the form asks for details about you as the owner/applicant, the loan, existing indebtedness and information about any other government financing you may have used.

Personal financial statement (413)

The SBA uses this information to determine if you’ll be able to meet the loan repayments.

It’s always best to check these forms with your lender or accountant, or at the very least, get them to review the paperwork before you submit.

Next steps

  • Visit the SBA website and explore the SBA’s loan programs and resources.
  • Be prepared. Check your credit rating, use a cash flow forecast template to demonstrate you can repay the loan and complete a business plan.
  • Talk to us about our SBA loan program.

Preparing a successful SBA loan application requires thorough planning, attention to detail, and careful organization of your financial and personal documents. By checking your credit rating, gathering the necessary paperwork, and completing the required SBA forms, you can significantly increase your chances of securing the loan. The more prepared you are, the smoother the process will be, and the more confident lenders and the SBA will be in your ability to repay the loan.

If you’re looking for guidance when it comes to SBA loans or any business needs, contact Diamond Credit Union’s Business Services team.

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The views, opinions, and ideas articulated in this blog are just that, and should not be construed as financial or legal advice. The writers of these blogs are educated on the topics they are writing about, but they are not attorneys, licensed financial advisors, or registered investment advisors. The information presented in each blog was deemed accurate at the time of publication for each individual post. Diamond Credit Union is not responsible for any actions a person may take as a result of the information they read in one of our blogs.