Once a bank has pre-approved your business loan (based on your earnings and credit), you should be aware that additional document verification will be required before the loan can be finalized. These steps ensures all information provided is accurate and meets the bank’s lending criteria prior to closing the loan. Being prepared for these requests is the difference between closing your loan swiftly or feeling inundated and overwhelmed. Herein is what is routinely needed:
Lenders require specific SBA-standard forms for all owners with 20% or more ownership:
Detailed info on the business, its history, and its owners.
A snapshot of personal assets, liabilities, and income for all guarantors.
To verify your business’s legal standing, you will need to submit Corporate and Legal documentation to verify ownership and ability to borrow:
Articles of Incorporation, Operating Agreements, or Bylaws.
Any local, state, or federal licenses required to operate where applicable.
A copy of your current lease or a signed Letter of Intent (LOI) for a new location where applicable.
Obtaining/verifying Certificates of Insurance with specific endorsements as it relates to General Liability, Business Personal Property and Workers Comp.
ACORD 28 form, endorsing the bank as Lenders Loss Payable and Certificate Holder.
(Note: Only this specific certification will be accepted—Loss Payee will be rejected-important to note with Insurance Brokers)
All covered locations are explicitly included on the certificate
$1MM per occurrence / $2MM aggregate
Insurance endorsing the bank as Certificate Holder Please ensure the business location(s) are included in the description: Also, confirm that the entity name matches the registration with the Secretary of State:
