SBA 504 Loan Application
CONTENTS:
Additional Documentation...... 3
Small Business/Operating Company Information...4
Current and Previous SBA and Other Government Debt.6
Real Estate Holding Company Information....7
Project Information...... 8
Project Cost Estimates...... 9
Source of Down-payment...... 10
Current and Previous SBA and Other Government Debt..6
Personal Information...... 11
Statement of Personal History...... 12
Personal Financial Statement...... 14
Personal Resume Form...... 17
Thank you for choosing Small Business Finance Corpfor consideration of your real estate or equipment financing needs. In addition to completing the attached loan application materials, please submit the following documentation:
Corporate Tax Returns for the previous 3 years for each Operating Company, Real Estate Holding Company (if applicable), and ANY Affiliate Business owned. Please provide ALLschedules, including any K-1s. Each return must be signed at “Sign Here” on the lower left of the front page of the 1120, 1120S or 1065.
Year-End Balance Sheet and P&L for the previous 3 years for each Operating Company, Real Estate Holding Company (if applicable), and ANY Affiliate Business owned. Sign and date the first page of each statement.
Current Interim Balance Sheet and P&L (within the last 60 days) for each Operating Company and ANY Affiliate Business owned. (Balance Sheet and P&L must have the same date.)Please include an Accounts Payable and an Accounts Receivable Aging report corresponding to the current interim balance sheet. Sign and date the first page of each statement.
Business Debt Schedulecorresponding to interim balance sheet (form enclosed.)
Personal Tax Returns for the previous 3 years for each sole proprietor, partner, stockholder owning 20% or more and each guarantor.Please provide ALL schedules, including any K-1s.Each return must be signed at “Sign Here” on the lower left of the second page on the 1040.
Personal Financial Statement (SBA form 413)for each sole proprietor, partner, stockholder owning 20% or more and each guarantor. If joint tax returns are filed, spouse must also sign personal financial statement even if no ownership or guarantee is involved.
Organizational Documents relating to ALL business entities: for Corporations – By-Laws; Limited Liability Companies – Operating Agreement; Partnerships – Partnership Agreement.
Real Estate Purchase – Copy of signed purchase contract.
Construction/Remodeling – Copy of construction bids.
Equipment Purchase – Copy of bids.
Small Business Information (Operating Company):
Business Name: ______
Trade Name (if applicable): ______
Description of business: ______
Street Address: ______
Mailing Address: (if different than Street Address): ______
Web Address: ______
Phone: ______Fax: ______
Date Business was established: ______
Business Type: ___ Corporation ___ LLC ___ Partnership ___ Sole Proprietor ___ Other
Ownership:
Principal #1: full legal name______
Principal #1: title______
Principal #1: ownership interest %______
Principal #2: full legal name______
Principal #2: title______
Principal #2: ownership interest %______
Principal #3: full legal name______
Principal #3: title______
Principal #3: ownership interest %______
Principal #4: full legal name______
Principal #4: title______
Principal #4: ownership interest %______
Key Employee #1: full legal name______
Key Employee #2: full legal name______
Who is the Primary Contact?______
Please list any additional Owners or Key Employees on a separate page and attach to this document.
Operating Company Information (Continued)
Current number of full-time equivalent employees: ______
Number of full-time equivalent employees planned to be hired in the next two years: ______
Is this business more than 51% woman, minority, or veteran owned? ___YES ___NO
Is this business a franchise operation? ___YES ___NO
Does this business have a dealership agreement? ___YES ___NO
Does this business or any Associate of the business have previous SBA or government related financing? ___YES ___NO
Does anyone who owns, manages, or directs this business or their spouse or members of their household work for the Small Business Administration, Small Business Advisory Council, SCORE, ACE, any Federal Agency, or the participating lender? ___YES ___NO
Does this business presently engage in export trade, or plan to in the future? ___YES ___NO
An Associate** of the small business or member of any Associate’s household is a GS-13 or higher government employee or a Major or Lieutenant Commander or higher in the military. ___YES ___NO
An SBA employee, the employee’s close relative or a member of the employee’s household is an employee, officer, directory, attorney, agent, creditor or debtor, or has a financial interest in the Small Business. ___YES ___NO
A former SBA employee separated from SBA for less than one year is an employee, officer, directory, attorney, agent, creditor or debtor, or has a financial interest in the Small Business. ___YES ___NO
Individual currently involved in a Small Business Development Center program, the individual’s close relative or a member of the individual’s household is an employee, officer, directory, attorney, agent, creditor or debtor, or has a financial interest in the Small Business. ___YES ___NO
A Member of Congress or an appointed official or employee of the legislative or judicial branch (or household member of such an individual) is a sole proprietor, general partner, officer, director, employee, attorney, agent, creditor or debtor, or has a financial interest in the Small Business. ___YES ___NO
Member or employee of a Small Business Advisory Council or a SCORE volunteer (or a close relative or household member of such an individual) is a sole proprietor, general partner, officer, director, employee, attorney, agent, creditor or debtor, or has 10% or more financial interest in the Small Business.___YES ___NO
** An Associate of a small business is an officer, director, owner of more than 20 percent of the equity, or key employee.
Current and Previous SBA and Other Government Debt:
Complete the chart below if you, your business, any principal of your business, any affiliate of your business, any other business currently owned by a principal, or any business previously owned by you or a principal of your business has received or applied for any direct or guaranteed financial assistance from the Federal Government, including student loans and disaster loans.
All current, previous, and pending Government debt must be listed, including loans that have been paid in full or those that resulted in a loss to the Government. (Note: Loans that resulted in a loss to the Government include loans that were charged off, compromised, or discharged as a result of bankruptcy. The amount of the loss is the outstanding principal balance of the loan that the Government had to write off after all collection activities (including compromise) were finalized.
Name of Agency / Agency Loan # / Borrower’s Name / Original Amount of Loan / Date of Application / Loan Status / Current Balance / $ Amount of Loss to the Government$ / $ / $
$ / $ / $
$ / $ / $
$ / $ / $
$ / $ / $
$ / $ / $
Business Debt Schedule:
Please list all current notes, lines of credit, and mortgages payable. (Present balance should agree with the latest balance sheet submitted.)
Payable to / Original Amount / Current Balance / Interest Rate / Original Date / Maturity Date / Monthly Payment / Collateral Securing Debt$ / $ / $
$ / $ / $
$ / $ / $
$ / $ / $
$ / $ / $
Real Estate Holding Company Information (if applicable):
If an individual or organization other than the active business/operating company will take title to the project real estate, please complete the following section. If the entity taking title is the same as the Operating Company, go to Project Information.
Individual Name: ______
Business Name: ______
Street Address: ______
Mailing Address: (if different than Street Address): ______
Phone: ______Fax: ______
Date Business was established: ______
Business Type: ___ Corporation ___ LLC ___ Partnership ___ Sole Proprietor ___ Other
Real Estate Holding Company Ownership:Please list any additionalOwners on a separate page and attach to this document.
Principal #1: full legal name______
Principal #1: title______
Principal #1: ownership interest %______
Principal #2: full legal name______
Principal #2: title______
Principal #2: ownership interest %______
Principal #3: full legal name______
Principal #3: title______
Principal #3: ownership interest %______
Note: If there will be a Real Estate Holding Company, there must be a lease between the Real Estate Holding Company and the Operating Company. The lease must be in writing and have a term, including options to renew exercisable solely by the Operating Company, at least equal to the term of the SBA loan (20 years). The lease will be subordinated to SBA’s lien on the property and the rents will be assigned as collateral for the loan The rent or lease payments cannot exceed the amount necessary to make the loan payment to the SBA and the Third Party Lender, and an additional amount to cover the Real Estate Holding Company’s expenses of holding the property, such as maintenance, insurance and property taxes. The Operating Company must lease 100% of the property from the Real Estate Holding Company, but it can sublease a portion of the property. For an existing building, a small business must occupy 51% of the rentable property and may lease up to 49% indefinitely. For new construction, a small business must occupy 60% of the rentable property, may permanently lease up to 20% and temporarily lease an additional 20% with the intention of using some of the additional 20% within three years and all of it within 10 years.
Project Information:
Address of property to be purchased: ______
Is the project property an existing building or new construction? ______
Square footage of the parcel of land the building occupies:______sf
Square footage of project building: ______sf
Square footage that your company will occupy: ______sf
If an existing building, in what year was the facility originally constructed? ______
Is any other financing being sought in addition to a building purchase? (such as business acquisition, working
capital, inventory, etc.): ______
Tenants:
If there are any tenants that will remain in the building, please complete the section to follow. Also, please have your realtor provide copies of all existing leases.
Tenant #1 Name: ______/ Tenant #2 Name: ______Square footage of tenant: ______/ Square footage of tenant: ______
Lease expiration date: ______/ Lease expiration date: ______
Tenant #1 Name: ______/ Tenant #2 Name: ______
Square footage of tenant: ______/ Square footage of tenant: ______
Lease expiration date: ______/ Lease expiration date: ______
Please list any additional Tenants on a separate page and attach to this document.
Project Cost Estimates:
Please fill in the estimate of those categories that will be financed as part of this loan.
HARD COSTS:
*Purchase Land / $*Purchase Land and Existing Building / $
*Purchase Improvements / $
*Construct a Building / $
*Add an Addition to a Building / $
*Make Renovations to a Building / $
*Make Leasehold Building Improvements / $
*Purchase Equipment / $
*Install Equipment / $
*Purchase Furniture and/or Fixtures / $
Other / $
Sub Total / $
SOFT COSTS:
Construction Contingency (maximum 10% of estimated construction cost) / $Interim Interest / $
*Architect / $
*Engineering / $
Appraisal / $
Environmental Study / $
Other / $
Sub Total / $
TOTAL PROJECT COSTS / $
Prior to submission of the application package to the Small Business Administration, actual bids on each of these cost components will be needed.
Source of Down-payment:
The minimum down-payment required depends upon the type of real estate being purchased, the maturity of the small business, and other credit factors. Typical down-payments are 10%, 15% or 20% of the total project cost. We need to understand the sources from which the down payment will be provided. If more than one source will be used, please indicate how much from each source.
____Personal Cash:
From whom: ______Amount $______
____Business Cash:
From:______a___ Amount $______
____Equity in the Project Real Estate:
Original cost of property:$______
Current loan balance(if applicable):$______
Current market value (estimated):$______
Date Purchased (mm/dd/yy)$______
Current market value (estimate)$______
____Borrowed
From:______Amount $______
Personal Information:
Three documents follow. The SBA’s Statement of Personal History (SBA form 912), the SBA’s Personal Financial Statement (SBA form 413), and a resume form. The specific individuals who need to complete these forms vary and are specified below:
Statement of Personal History (SBA form 912):
Every proprietor, general partner, officer, director, managing member of a limited liability company (LLC), owner of 20% or more of the Applicant, Trustor (if the Small Business Applicant is owned by a trust), and any person hired by the Applicant to manage day-to-day operations (Key Employee) must complete this form.
Every person completing a 912 must answer each question fully giving details about any “yes” response. NOTE: A “yes” is required even when the record is allegedly sealed, expunged or otherwise unavailable. (This information is kept private and confidential.) There are no exceptions to or waivers of this policy.
(a) If every Subject Individual answers questions 7, 8 and 9 as “no,” normal loan processing may proceed.
(b) If a Subject Individual answers “yes” to question 7, then the Small Business Applicant is not eligible.
(c) If a Subject Individual answers “yes” to question 8 or 9, then that individual must go through a background check and character determination unless the charge resulting in a “yes” answer was a single misdemeanor that was subsequently dropped without prosecution. (Documentation from the appropriate court or prosecutor’s office must be attached to the SBA Form 912 and maintained in the CDC’s loan file.) If the individual pled guilty to the charges or to lesser charges the background check and character determination must be conducted. Currently, SBA conducts two types of background checks: (1) a Name Check, which requires a search of available records based on a person’s name and social security number (SSN); and (2) a Fingerprint Check, which searches available records based on the person’s name and SSN plus a complete and legibly written FD-258 Fingerprint Card.
Personal Financial Statement (SBA form 413):
This form must be completed by: (I) each proprietor; (2) general partner; (3) managing member of a limited liability company (LLC); (4) each owner of 20% or more of the equity of the Applicant (including the assets of the owner's spouse and any minor children); and (5) any person providing a guaranty on the loan.
Personal Resume:
This form must be completed by: (I) each proprietor; (2) general partner; (3) managing member of a limited liability company (LLC); (4) each owner of 20% or more of the equity of the Applicant. A prepared resume may be substituted for this form.
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PERSONAL RESUME FORM
We need to understand the background and management experience of the principals of the small business. Please attach resumes for any principals or key employees involved with the small business, or complete this form for each principal or key employee.
Name: ______
Home Address: ______
Phone: ______Email: ______
MILITARY:
Branch of Military: ______From: ______To: ______
Rank at Dischrage: ______Honorable Discharge: ______
Job Description: ______
EDUCATION (College or Technical Training):
Name and Location: ______
Dates Attended: ______Major: ______Degree/Certificate: ______
Name and Location: ______
Dates Attended: ______Major: ______Degree/Certificate: ______
WORK EXPERIENCE:
Company Name: ______From: ______To: ______
Title: ______City/State: ______
Company Name: ______From: ______To: ______
Title: ______City/State: ______
Company Name: ______From: ______To: ______
Title: ______City/State: ______
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