Loan Application Checklist | Salon Suites Example

1. Application Overview

Loan Request Summary

Parameter	Value
Loan Type	SBA 7(a) Small Loan
Amount Requested	$228,000
Purpose	Salon suites build-out (leasehold improvements) and equipment
Term	10 years
Expected Rate	Prime + 4.5% to 6.0% (currently 11.25% - 12.75%)
Equity Injection	$57,000 (20%)
Working Capital Reserve	$35,000 (separate from loan)
Total Owner Investment	$92,000 from $150,000 available

Estimated Timeline

Milestone	Duration	Cumulative
Document Gathering	2-4 weeks	2-4 weeks
Application Preparation	1-2 weeks	4-6 weeks
Lender Review	2-4 weeks	6-10 weeks
SBA Review	1-2 weeks	7-12 weeks
Closing	1-2 weeks	8-14 weeks
Total (Standard)	60-90 days	From submission

Critical Success Factors

Complete Package First Time: Incomplete applications cause delays (weeks, not days)
SBSS Score 165+: Applications below threshold are auto-rejected
DSCR 1.25x+: Our 1.54x provides comfortable margin
Clear Use of Funds: Detailed breakdown required (see funding-structure.md)
Professional Business Plan: SBA-format document from Phase 14

2. Required SBA Forms

Primary SBA Forms

Form	Description	Status	Owner Action	Due
SBA Form 1919	Borrower Information Form	[ ] Not Started	Complete for ALL 20%+ owners	Pre-application
SBA Form 912	Statement of Personal History	[ ] Not Started	Required if triggered by Form 1919 responses	Pre-application
SBA Form 413	Personal Financial Statement	[ ] Not Started	Complete for ALL 20%+ owners	Pre-application
SBA Form 148	Unconditional Guarantee	[ ] Not Started	Sign at closing (all 20%+ owners)	Closing

Form Details

SBA Form 1919 - Borrower Information Form

Purpose: Collects detailed information about the business and all owners with 20%+ ownership

Key Sections:

Business information (legal name, EIN, address, entity type)
Owner information (name, address, SSN, ownership %, title)
Criminal history questions (triggers Form 912 if "yes" answers)
Bankruptcy/foreclosure history
Current business debts
Affiliations with other businesses

Tips:

Answer ALL questions - blank responses delay processing
List ALL owners with 20%+ stake
Attach additional pages if needed
Review for accuracy before submission

SBA Form 912 - Statement of Personal History

Purpose: Detailed background check for owners with certain Form 1919 responses

Required If:

Any "yes" answer to criminal history questions on Form 1919
SBA or lender specifically requests

Key Information:

Complete criminal history (arrests, charges, convictions)
Explanation of circumstances
Supporting documentation

SBA Form 413 - Personal Financial Statement

Purpose: Detailed snapshot of personal assets, liabilities, and net worth

Key Sections:

Assets (cash, stocks, real estate, retirement, vehicles, etc.)
Liabilities (mortgages, loans, credit cards, taxes owed, etc.)
Contingent liabilities (guarantees, endorsements)
Income sources (salary, investments, other)
Life insurance
Real estate schedule

Tips:

Use current values (not purchase price)
Include ALL assets and liabilities
Attach supporting documentation where noted
Both spouses complete if applicable

SBA Form 148 - Unconditional Guarantee

Purpose: Personal guarantee of the SBA loan by all 20%+ owners

Key Terms:

Unlimited guarantee: Guarantor liable for full loan amount
Unconditional: Cannot avoid by claiming business losses
Joint and several: Each guarantor liable for full amount
Waiver of defenses: Standard legal protections waived

Signed at: Loan closing (not pre-application)

3. Financial Documents Checklist

Personal Financial Documents (All 20%+ Owners)

Document	Status	Owner Action	Notes
Personal Tax Returns (2023)	[ ] Not Gathered	Obtain copies from files or IRS	All pages, schedules, W-2s
Personal Tax Returns (2024)	[ ] Not Gathered	Obtain copies from files or IRS	All pages, schedules, W-2s
Personal Tax Returns (2025)	[ ] Not Filed Yet	File when available (or extension)	If filed before application
SBA Form 413 (Personal Financial Statement)	[ ] Not Started	Complete form	Current assets/liabilities
Personal Bank Statements (3-6 months)	[ ] Not Gathered	Request from bank	All personal accounts
Investment Account Statements	[ ] Not Gathered	Request from brokerages	Stocks, 401k, IRA, etc.
Real Estate Documentation	[ ] Not Gathered	Mortgage statements, tax assessments	If owned
Other Asset Documentation	[ ] Not Gathered	Titles, appraisals	Vehicles, equipment, etc.
Credit Report Authorization	[ ] Not Signed	Sign lender's form	Lender pulls SBSS score

Equity Injection Documentation

Document	Status	Owner Action	Notes
Source of Funds Statement	[ ] Not Prepared	Written explanation of $57K source	Required for SBA
Bank Statements (showing $57K)	[ ] Not Gathered	3-6 months showing available balance	Must show funds exist
Gift Letters (if applicable)	[ ] N/A	Only if receiving gift toward equity	From donor
Investment Liquidation Docs	[ ] N/A	If selling assets for equity	Sale confirmation

4. Business Documents Checklist

Entity & Registration Documents

Document	Status	Source	Notes
Articles of Organization/Incorporation	[ ] Not Filed	VA State filings	If LLC/Corp formed
Operating Agreement	[ ] Not Drafted	Attorney or template	Shows ownership structure
EIN Confirmation Letter (CP575)	[ ] Not Obtained	IRS.gov	Apply online - immediate
Certificate of Good Standing	[ ] Not Obtained	Virginia SCC	Shows entity in compliance
Business License	[ ] Not Obtained	Loudoun County	May apply after lease signed
Trade Name Registration (if DBA)	[ ] N/A	Virginia SCC	Only if using DBA

Business Plan Documents

Document	Status	Source	Notes
Complete Business Plan	[ ] Pending Phase 14	Phase 14 output	SBA-format required
Executive Summary	[ ] Pending Phase 14	Phase 14 output	2-3 pages maximum
Market Analysis	[ ] Complete	Phase 1-2 outputs	Demographics, competition
Financial Projections (3-year)	[ ] Complete	Phase 8 outputs	P&L, cash flow, balance sheet
Use of Funds Statement	[ ] Complete	Phase 12 Task 1 output	Detailed allocation
Management Resume/CV	[ ] Not Prepared	Owner preparation	Experience, qualifications
Organization Chart	[ ] Not Prepared	Create if multiple owners	Shows structure

Supporting Business Documents

Document	Status	Source	Notes
Business Checking Account	[ ] Not Opened	Bank of choice	Recommend same as SBA lender
Business Credit Report	[ ] Not Pulled	Nav.com or D&B	For existing businesses
Current Year Financials	[ ] N/A (Startup)	Only for existing businesses	N/A
Accounts Receivable Aging	[ ] N/A (Startup)	Only for existing businesses	N/A
Accounts Payable Summary	[ ] N/A (Startup)	Only for existing businesses	N/A

5. Project-Specific Documents

Real Estate Documents

Document	Status	Source	Notes
Lease Agreement	[ ] Not Signed	Landlord	Required before funding
Letter of Intent (LOI)	[ ] Not Signed	Landlord	May be accepted for conditional approval
Site Photos	[ ] Not Taken	During site visit	Interior/exterior of space
Property Information	[ ] Not Gathered	Landlord or broker	Square footage, parking, zoning
Landlord Financial Statement	[ ] Not Requested	If lender requires	Some lenders require

Construction Documents

Document	Status	Source	Notes
Contractor Bids/Estimates	[ ] Pending	Phase 9 implementation	2-3 competitive bids recommended
Scope of Work	[ ] Complete	Phase 9 outputs	Detailed construction scope
Construction Timeline	[ ] Complete	Phase 9 outputs	18-week base case
Architect Drawings (if required)	[ ] Pending	Hired architect	For permit and lender
Contractor License Verification	[ ] Pending	Virginia DPOR	Verify contractor licensed

Equipment Documents

Document	Status	Source	Notes
Equipment Quotes (US sourcing)	[ ] Pending	Phase 9 implementation	Shampoo bowls, appliances
Equipment Quotes (China sourcing)	[ ] Pending	Phase 9 implementation	Chairs, mirrors, furniture
Shipping/Logistics Quotes	[ ] Pending	Freight forwarder	For China imports
FF&E List with Costs	[ ] Complete	Phase 9 outputs	$35,320 mid-estimate

Insurance Documents

Document	Status	Source	Notes
Professional Liability Quote	[ ] Not Obtained	Insurance broker	$1M/$2M coverage
General Liability Quote	[ ] Not Obtained	Insurance broker	$1M/$2M coverage
Property/BOP Quote	[ ] Not Obtained	Insurance broker	Contents coverage
Workers Comp (if employees)	[ ] N/A	Insurance broker	Only if hiring
Insurance Broker Contact	[ ] Not Identified	Research	Recommend business specialist

Permit Documents

Document	Status	Source	Notes
Permit Cost Estimates	[ ] Complete	Phase 9 outputs	$3,000-$8,000 range
Zoning Verification	[ ] Pending	Loudoun County	ZCU required
Permit Timeline	[ ] Complete	Phase 9 outputs	20-22 weeks critical path

6. Pre-Application Preparation

Credit & Financial (Complete Before Lender Contact)

Action Item	Status	Priority	Notes
[ ] Check personal credit score	Not Done	HIGH	Target 680+ (ideal 720+)
[ ] Check SBSS business credit score	Not Done	HIGH	Target 165+ (hard minimum)
[ ] Resolve outstanding liens	N/A	HIGH	If any exist
[ ] Resolve judgments	N/A	HIGH	If any exist
[ ] Resolve collections	N/A	HIGH	If any exist
[ ] Reduce credit utilization	Review	MEDIUM	Target <30% utilization
[ ] Verify no federal debt issues (CAIVRS)	Not Done	HIGH	Student loans, taxes, etc.
[ ] Document source of $57K equity	Not Done	HIGH	Bank statements showing funds
[ ] Document source of $35K working capital	Not Done	HIGH	Separate from equity

Business Preparation (Complete Before Application)

Action Item	Status	Priority	Notes
[ ] Form LLC	Not Done	HIGH	Required before loan
[ ] Obtain EIN from IRS	Not Done	HIGH	Apply online at IRS.gov
[ ] Draft Operating Agreement	Not Done	HIGH	Shows ownership structure
[ ] Open business bank account	Not Done	MEDIUM	Recommend at SBA lender
[ ] Register with Virginia SCC	Not Done	HIGH	Annual report filing
[ ] Draft business plan outline	In Progress	HIGH	Complete in Phase 14
[ ] Compile financial projections	Complete	HIGH	Phase 8 outputs
[ ] Prepare management resume	Not Done	MEDIUM	Owner CV/bio

Document Preparation Checklist

Action Item	Status	Priority	Notes
[ ] Gather tax returns (3 years)	Not Done	HIGH	2023, 2024, 2025 if filed
[ ] Gather bank statements (6 months)	Not Done	HIGH	All personal accounts
[ ] Complete SBA Form 413	Not Done	HIGH	Personal financial statement
[ ] Prepare use of funds statement	Complete	HIGH	Task 1 output
[ ] Obtain insurance quotes	Not Done	MEDIUM	Professional + GL
[ ] Obtain contractor estimates	Not Done	MEDIUM	2-3 bids
[ ] Prepare equipment list	Complete	MEDIUM	Phase 9 outputs

7. Document Organization System

Recommended Folder Structure

SBA-Application/
├── 01-SBA-Forms/
│   ├── Form-1919-Borrower-Info.pdf
│   ├── Form-912-Personal-History.pdf (if required)
│   ├── Form-413-Personal-Financial.pdf
│   └── Form-148-Guarantee.pdf (at closing)
│
├── 02-Personal-Financial/
│   ├── Tax-Returns-2023/
│   ├── Tax-Returns-2024/
│   ├── Tax-Returns-2025/ (if filed)
│   ├── Bank-Statements/
│   ├── Investment-Statements/
│   ├── Real-Estate-Docs/
│   └── Credit-Report-Auth.pdf
│
├── 03-Business-Documents/
│   ├── Entity/
│   │   ├── Articles-of-Organization.pdf
│   │   ├── Operating-Agreement.pdf
│   │   ├── EIN-Confirmation.pdf
│   │   └── Good-Standing-Certificate.pdf
│   ├── Business-Plan/
│   │   ├── Complete-Business-Plan.pdf
│   │   ├── Executive-Summary.pdf
│   │   └── Financial-Projections/
│   └── Supporting/
│       ├── Management-Resume.pdf
│       └── Org-Chart.pdf
│
├── 04-Project-Documents/
│   ├── Real-Estate/
│   │   ├── Lease-Agreement.pdf (or LOI)
│   │   └── Site-Photos/
│   ├── Construction/
│   │   ├── Contractor-Bid-1.pdf
│   │   ├── Contractor-Bid-2.pdf
│   │   ├── Scope-of-Work.pdf
│   │   └── Timeline.pdf
│   ├── Equipment/
│   │   ├── US-Equipment-Quotes/
│   │   ├── China-Equipment-Quotes/
│   │   └── FF&E-Master-List.xlsx
│   └── Insurance/
│       ├── Professional-Liability-Quote.pdf
│       └── General-Liability-Quote.pdf
│
├── 05-Lender-Correspondence/
│   ├── M&T-Bank/
│   ├── TD-Bank/
│   └── Other-Lenders/
│
└── 06-Supporting-Materials/
    ├── Market-Research-Summary.pdf
    ├── Competitive-Analysis.pdf
    ├── Use-of-Funds-Statement.pdf
    └── Credit-Reports/

File Naming Convention

Use consistent naming for easy organization:

[Date]-[Category]-[Description].[ext]

Examples:
2026-01-15-Tax-Return-2024-Federal.pdf
2026-01-18-Bank-Statement-Chase-Jan.pdf
2026-01-20-Contractor-Bid-ABC-Construction.pdf

Digital vs. Physical

Type	Keep Digital	Keep Physical
SBA Forms	Yes	Yes (originals for signing)
Tax Returns	Yes	Optional (copies acceptable)
Bank Statements	Yes	No (digital acceptable)
Lease/LOI	Yes	Yes (originals required)
Insurance Quotes	Yes	No
Business Plan	Yes	Yes (for meetings)
Signed Guarantees	Yes	Yes (originals)

8. Timeline & Milestones

Application Preparation Timeline

Milestone	Target Week	Dependencies	Deliverable
Credit check complete	Week 1	Owner action	SBSS score verified 165+
Entity formed (LLC)	Week 1-2	State filing	Articles of Organization
EIN obtained	Week 2	LLC formed	IRS CP575 letter
Personal docs gathered	Week 2-3	Owner action	Tax returns, statements
Business bank account opened	Week 2-3	EIN obtained	Account number
SBA forms completed	Week 3	Personal docs ready	Forms 1919, 413
Business plan drafted	Week 4-6	Phase 14 execution	SBA-format document
Insurance quotes obtained	Week 4	Broker contact	Professional + GL quotes
Lender conversations started	Week 4-5	Docs substantially ready	Pre-qualification meetings
Site identified	Week 6-10	Site selection process	LOI or lease
Contractor bids received	Week 8-10	Site identified	2-3 competitive bids
Full application submitted	Week 10-12	All docs + site	Complete package

Post-Submission Timeline

Milestone	Expected Timing	Owner Action
Lender acknowledgment	1-3 days	Confirm receipt
Initial review questions	1-2 weeks	Respond within 48 hours
Conditional approval	3-4 weeks	Review terms carefully
Additional documentation	4-5 weeks	Provide promptly
Final approval	5-6 weeks	Prepare for closing
Closing scheduled	6-7 weeks	Review closing docs
Funding	7-8 weeks	Disbursement begins

Critical Path Items

Item	Why Critical	Risk if Delayed
SBSS score verification	Hard minimum 165	Auto-rejection
Entity formation	Cannot apply without	Delays everything
Site selection	Required for final approval	Conditional approval only
Lease execution	Required for funding	Cannot close without
Insurance binding	Required for closing	Delays funding

Contingency Planning

Risk	Mitigation	Backup Plan
SBSS below 165	Check early, improve if needed	Delay 3-6 months for credit repair
Primary lender declines	Apply to Tier 2 simultaneously	MainStreet Bank, Virginia Credit Union
Site selection delayed	Begin lender process during search	Conditional approval, finalize with site
Rate increase	Lock if available	Budget scenarios tested to 12.75%
Document delays	Start gathering immediately	Use digital copies where acceptable

9. Quick Reference Summary

Documents Needed from Owner

3 years personal tax returns
6 months personal bank statements
Investment account statements
Completed SBA Form 413
Completed SBA Form 1919
Management resume/CV
Source of funds documentation ($57K)

Documents Needed from External Sources

Lease or LOI (landlord)
Contractor bids (2-3 contractors)
Insurance quotes (broker)
Equipment quotes (vendors)
Articles of Organization (Virginia SCC)
EIN confirmation (IRS)

Documents Already Complete (From Prior Phases)

Market analysis (Phase 1-2)
Financial projections (Phase 8)
Use of funds statement (Phase 12)
Construction scope/timeline (Phase 9)
Equipment list (Phase 9)
Permit estimates (Phase 9)

First Priority Actions

TODAY: Check personal credit score
THIS WEEK: File LLC formation with Virginia SCC
THIS WEEK: Apply for EIN at IRS.gov
NEXT WEEK: Gather tax returns and bank statements
NEXT WEEK: Complete SBA Form 413

SBA Application Checklist Complete Phase 12: Funding Strategy - Plan 01 Task 3 Complete