Business financing

Commercial/SBA Financing

Commercial financing should match the property, business cash flow and the way the capital will be used.

People receiving clear guidance for their home or financing goals

Commercial application preparation

Documents commonly requested

This is a preparation list, not a universal requirement. Your mortgage professional and the selected lender will provide the transaction-specific checklist and secure upload instructions.

Business and ownership

Business loan application and a clear use-of-funds summary
Entity formation documents, operating agreement and EIN confirmation
Ownership schedule and identification for guarantors
Business plan, management biographies or relevant operating experience when requested

Financial information

Recent business and personal tax returns for the periods requested
Year-to-date profit-and-loss statement and balance sheet
Recent business bank statements and a current business debt schedule
Personal financial statements and schedules of real estate owned when applicable

Property and transaction

Purchase agreement or current mortgage and payoff information
Current rent roll, leases and property income-and-expense history
Property description, insurance, tax bill and available survey or title records
Construction budget, equipment quote or sources-and-uses schedule when applicable

Possible SBA additions

SBA borrower-information and personal-financial-statement forms
Evidence of any required borrower equity injection
Franchise, environmental or other program-specific documentation
Additional lender and SBA forms based on the selected 7(a) or 504 structure

Prepare the business story

Commercial lenders commonly review the business, its owners or guarantors, historical and current financial performance, available collateral, relevant experience and the exact use of proceeds. The required package varies by property, loan purpose, lender and whether an SBA guaranty is involved.

Structure around the project

Owner-occupied real estate, investment property, mixed-use projects, equipment, working capital and business acquisitions are underwritten differently. Down payment, collateral, term, amortization, guarantees, reserves and recourse can vary significantly by transaction and program.

Frequently asked questions

Common questions about commercial/sba financing

What information is reviewed for commercial financing?

Reviews commonly include business and guarantor financials, ownership experience, property information, cash flow, collateral and use of funds.

Are SBA loans made directly by the SBA?

SBA programs generally support eligible loans made by participating lenders; the lender and SBA program requirements both apply.

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Need an answer for your situation?

General information is useful. A mortgage professional can help you evaluate the facts that apply to you.

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