So you’re ready to start your own business or have already done so and would like to apply for a loan backed by the Small Business Administration (SBA). You have many things to consider, such as whether you meet the SBA loan financial requirements and the documents needed for an SBA loan in Florida. That’s why we put together this SBA loan application checklist for those wondering how to prepare for an SBA loan.
A Business Plan
A business plan not only lets you prepare for an SBA loan, it also gives you a chance to think about how you’ll succeed. You’ll need to figure out your North American Industry Classification System (NAICS) code, which is required when applying for loans and business insurance.
The SBA’s website has information on how to write a business plan. If you need additional help, you could reach out to an SBA Small Business Development Center (SBDC) as they offer free advice on starting a business. You can search for a local SBDC and SBA offices online.
You can also get free business mentoring through SCORE, which is the nation’s largest network of volunteer business mentors. You can search for a SCORE business mentor at the SBA’s website.
Key points of your business plan should be:
- Your business location and your competitors.
- Any credentials you have, such as your business experience, licenses, and education.
- Your personal assets and how much you’re willing to invest.
- Marketing information that outlines how you’ll attract customers.
- How much funding you’ll need.
- Proof that you could pay back the loan, such as your home and investments, or loans and investments from other people.
Your Business Licenses
Your business may need a professional license from the Florida Department of Business & Professional Regulation. Of course, you might also need a federal license or permit to work in particular industries.
If your business has one or more employees, you’ll need an Employer Identification Number (EIN) from the IRS. You’ll also need an EIN to pay employment, excise or alcohol, tobacco, and firearms taxes. More information about EINs is available at the IRS website.
County and municipal governments in Florida typically require a business license, so check with your local tax officials to find out more. You can search for them at the Florida Department of Revenue’s website.
You might also need a license from the state if your business is involved in activities that are taxed by the state of Florida.
Your Legal Documents
This may include your articles of incorporation, franchise agreements, commercial leases, and third-party contracts you have with other businesses.
Your Business Financials
This includes:
- Three years of your business’s tax returns.
- Your income statements and balance sheet for the current and previous year.
- Financial projections for at least the first two years.
Proof of Collateral
You’ll need an appraisal or proof of valuation for any personal or business property you use as collateral to secure your SBA loan.
Proof of Insurance
You’ll need proof of insurance coverage for any assets used as collateral to secure your business loan, as well as your business property. This would include commercial property insurance, general liability, workers’ compensation, and life insurance for the owners. You might also need flood insurance if your business property is in a FEMA-designated flood zone.
Your Personal Documents
You’ll need a valid photo ID issued by the state or federal government for each owner or partner, as well as three years of your personal income tax returns, your dates of birth, proof of Social Security numbers, personal addresses, email, and phone numbers.
You also need three to six months of your personal bank statements for each owner (possibly more) and a personal financial statement that describes all the financial assets that the business owner(s) possess.
Your DBA Registration
If your business name is different than your personal name, you’ll need to file a Florida Fictitious Name Registration for your “doing business as” name.
Contact a Cogent Bank SBA Lender Today
If you need business financing, please contact one of our community bankers to discuss your options and prepare an application for an SBA loan or a business term loan. Please call us at 888-577-0404 or visit our locations throughout the state of Florida.
Disclaimer: The information contained herein is for informational/educational purposes only. The views and opinions expressed in this document may be those of the individuals and may not necessarily reflect those of Cogent Bancorp and its subsidiaries and affiliates, or the entities they may represent. Content contained herein may be used in connection with the advertising and/or marketing of products offered by Cogent Bank or Cogent Private Wealth. The material is not intended to provide or substitute for legal, tax, or financial advice or to indicate the availability or suitability of any Cogent Bank product or service. You should consult with a legal, financial, tax, or other appropriate professional(s) for your specific needs and/or objectives before making any decisions.
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