Documents You Need for a Business Loan Application

Gathering documents is the most time-consuming part of any loan application. Do it right the first time and you will fund faster. Do it wrong and you will spend weeks going back and forth with lenders.

This guide covers every document you might need. Not every loan requires everything listed here. I will tell you what is required for each loan type so you can prepare exactly what you need.

The Universal Document Checklist

These documents are required for virtually every business loan application:

Business bank statements: 3-6 months of complete statements
Business tax returns: Last 2-3 years with all schedules
Personal tax returns: Last 2 years for all owners with 20%+ ownership
Government-issued ID: Driver license or passport for all owners
Business license: Current and valid for your jurisdiction
EIN verification: IRS Letter 147C or SS-4 confirmation

Create a Loan Document Folder

Set up a dedicated folder (digital or physical) with all these documents. Update it quarterly. When you need funding, you will be ready to apply immediately.

Bank Statements: What Lenders Actually Look For

Bank statements are the most important documents in your application. Here is exactly how to prepare them and what lenders analyze:

Complete statements: All pages, including the summary page
Account holder name: Must match your business legal name
Date range: Consecutive months with no gaps
Deposits: Consistent with reported revenue
Average daily balance: Higher is better, shows cash cushion
Overdrafts: Red flags that need explanation
NSF items: Multiple returned items suggest cash flow problems

Bank statement requirements by loan type:

Loan Type	Months Required	Notes
MCA / Revenue-based	3-4 months	Focus on deposits and daily balances
Online term loan	3-6 months	Looking for consistent deposits
Line of credit	6-12 months	Need full picture of cash flow cycles
Equipment financing	3-6 months	Verifying down payment ability
SBA loan	12 months	Comprehensive review required
Bank term loan	12-24 months	Full business cycle analysis

Do Not Edit Bank Statements

Lenders verify statements directly with banks. Altered statements are immediately flagged and result in automatic declination plus potential fraud reporting.

Tax Returns: What You Need to Gather

Tax returns validate your revenue and profitability. Make sure you have the complete return:

Full return: Not just the first two pages
All schedules: K-1s, depreciation schedules, everything
Signed copies: Stamped or e-filed confirmation
Extensions: If filed, include the extension form

Which tax forms you need depends on your business structure:

Business Structure	Tax Forms Required
Sole proprietorship	Schedule C (part of Form 1040)
Partnership	Form 1065 + K-1s for all partners
S-Corp	Form 1120S + K-1s for all shareholders
C-Corp	Form 1120
LLC (single member)	Schedule C (part of Form 1040)
LLC (multi-member)	Form 1065 + K-1s (usually)

Financial Statements

Financial statements give lenders a snapshot of your business health. Requirements vary by loan size and type:

Profit & Loss (P&L): Year-to-date and prior full years
Balance sheet: Current assets, liabilities, and equity
Accounts receivable aging: If you invoice customers
Accounts payable aging: What you owe vendors
Debt schedule: All existing loans with balances, payments, and maturity dates

Financial statement requirements by loan amount:

Loan Amount	Typical Requirements
Under $100K	Basic P&L, may accept QuickBooks reports
$100K-$350K	P&L and balance sheet, internally prepared OK
$350K-$500K	Reviewed or compiled statements preferred
Over $500K	CPA-prepared statements often required
SBA loans	SBA Form 413 (Personal Financial Statement) required

QuickBooks and Accounting Software

Many lenders accept reports directly from QuickBooks, Xero, or similar software. Some have integrations that pull data automatically. Check with your lender.

Legal Documents

Legal documents verify your business structure and authority to borrow:

Articles of incorporation/organization: Formation documents from your state
Operating agreement or bylaws: Governance structure
Business licenses and permits: Current and valid
Franchise agreement: If applicable
Commercial lease: If you rent business space
Certificate of good standing: Shows business is current with state

Ownership and Personal Documents

For owners with 20% or greater ownership:

Personal identification: Driver license or passport
Social Security number: For credit check authorization
Personal financial statement: Assets, liabilities, net worth
Personal tax returns: Last 2 years with all schedules
Resume or bio: For SBA loans, demonstrating relevant experience

Collateral Documentation

For secured loans, you need documentation proving ownership and value of collateral:

Real estate: Deed, recent appraisal, property tax bills
Equipment: Bills of sale, invoices, serial numbers
Inventory: Aging report, valuation methodology
Accounts receivable: Aging report, customer concentration data
Vehicles: Titles, registration, condition reports

Loan-Specific Document Requirements

Here is what each major loan type typically requires:

Loan Type	Documents Required
MCA	Bank statements (3-4 mo), ID, voided check
Online term loan	Bank statements (6 mo), tax returns (1-2 yr), ID, P&L
Line of credit	Bank statements (6-12 mo), tax returns (2 yr), financial statements, AR/AP aging
Equipment financing	Bank statements (3-6 mo), tax returns (2 yr), equipment quote, financial statements
SBA 7(a)	Everything above plus SBA forms, business plan (sometimes), personal financial statement

SBA-Specific Forms

SBA loans require additional government forms:

SBA Form 1919: Borrower Information Form
SBA Form 413: Personal Financial Statement
SBA Form 912: Statement of Personal History
SBA Form 159: Fee Disclosure Form
IRS Form 4506-C: Authorization to request tax transcripts

SBA Forms Are Lengthy

The SBA form package can take 2-3 hours to complete properly. Set aside dedicated time rather than trying to rush through it.

Document Preparation Tips

Follow these practices to ensure smooth processing:

Use clear file names: "2024_Business_Tax_Return.pdf" not "scan001.pdf"
Combine related documents: All pages of bank statements in one PDF
Ensure readability: High-quality scans, no shadows or cut-off text
Check for completeness: All pages present, nothing blank
Verify dates: Most documents should be current within 60-90 days
Match names exactly: Business name should be consistent across all documents

What to Do If You Do Not Have a Document

Missing documents are common. Here is how to handle typical situations:

Missing tax returns: File them immediately or get transcripts from IRS (Form 4506-T)
No financial statements: Create them in QuickBooks or work with an accountant
Lost formation documents: Order copies from your Secretary of State
Cannot find bank statements: Download from online banking or request from bank
No business license: Check if you actually need one; get it if required

IRS Transcripts Take Time

If you need IRS transcripts, request them early. Processing can take 2-3 weeks. Lenders often accept transcripts when original returns are unavailable.

Quick Reference Checklist

Print this checklist before starting your application:

[ ] Bank statements (3-12 months depending on loan type)
[ ] Business tax returns (2-3 years with all schedules)
[ ] Personal tax returns for all 20%+ owners
[ ] Government ID for all owners
[ ] EIN verification letter
[ ] Business license
[ ] Articles of incorporation/organization
[ ] Year-to-date P&L
[ ] Current balance sheet
[ ] Debt schedule showing existing obligations
[ ] Voided check for ACH setup
[ ] Personal financial statement (for larger loans)

Documents You Need for a Business Loan Application

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