The Complete SBA Loan Requirements Checklist for Small Business Owners
What I wish I knew before applying for funding—and how I built a tool to make it easier.
"I spent weeks gathering documents, building spreadsheets, and trying to make sense of what banks actually wanted. Here's everything I learned—and how you can do it faster."
My SBA Loan Journey
When I decided to seek funding for 4Cast Concrete Solutions, my architectural precast concrete software company, I thought it would be straightforward. I had a solid business idea, years of industry experience, and the technical skills to build the product. How hard could getting a loan be?
Turns out—pretty hard.
The Small Business Administration (SBA) has incredible loan programs designed to help entrepreneurs like us. The SBA 7(a) loan program alone guarantees billions of dollars in loans every year. But here's the catch: the documentation requirements are extensive, and if you're not a finance person (I'm a technologist and COO, not a CFO), it can feel overwhelming.
I spent weeks trying to piece together financial projections in Excel, researching industry benchmarks, and trying to figure out what "pro forma financial statements" even meant. I'd Google terms like "debt service coverage ratio" at midnight, trying to understand if my numbers made sense.
That frustration is why I eventually built MyTinyCEO—an AI-powered business planning tool that generates all the financial documentation you need for an SBA loan application, explained in plain English. But before we talk about solutions, let me walk you through exactly what you need.
What is an SBA Loan?
The SBA (Small Business Administration) doesn't actually lend you money directly. Instead, they partner with banks and lenders to guarantee a portion of your loan—typically up to 85%. This guarantee reduces the risk for lenders, making them more willing to approve loans for small businesses that might not otherwise qualify.
Quick Definition
SBA Guarantee: The SBA promises to repay the lender a percentage of your loan if you default. This makes banks more comfortable lending to startups and small businesses.
There are several types of SBA loans, but the most common are:
- SBA 7(a) Loan: The most popular. Up to $5 million for working capital, equipment, real estate, or refinancing debt.
- SBA 504 Loan: Specifically for purchasing fixed assets like buildings or heavy equipment. Up to $5.5 million.
- SBA Microloan: Smaller loans up to $50,000 for startups and small businesses.
For most small business owners and startups, the 7(a) loan is what you'll be applying for, so that's what we'll focus on.
The Complete SBA Loan Requirements Checklist
Here's everything you'll need. I've organized this based on what banks actually ask for, not just what the SBA website says. Trust me—there's a difference.
1. Business Formation Documents
- ✓ Business License: Proof your business is legally registered in your state.
- ✓ Articles of Incorporation or LLC Operating Agreement: Shows your business structure.
- ✓ Business Lease or Deed: If you rent or own your business location.
- ✓ Franchise Agreement: Only if you're operating a franchise.
Pro Tip: If you're a new business without all these documents yet, don't panic. Some lenders work with startups, but you'll need an even stronger business plan to compensate.
2. Financial Documents (The Big One)
This is where most people get stuck. Banks want to see that you understand your numbers and can realistically pay back the loan.
- ✓ Business Tax Returns (Last 3 Years): If you're an existing business. Startups won't have these yet.
- ✓ Personal Tax Returns (Last 3 Years): Yes, your personal taxes matter. Banks want to see you're financially responsible.
- ✓ Personal Financial Statement: A list of all your assets (house, car, savings) and liabilities (debts, loans).
- ✓ Bank Statements (Last 3-6 Months): Both business and personal accounts.
- ✓ Balance Sheet: A snapshot of what your business owns and owes.
- ✓ Profit & Loss Statement (P&L): Shows your revenue and expenses over time.
Quick Definitions
- Balance Sheet: Think of it like a financial selfie. It shows what you own (assets), what you owe (liabilities), and what's left over (equity) at a specific point in time.
- P&L Statement: Like a movie of your finances. It shows income and expenses over a period (usually monthly or annually) to determine if you're profitable.
3. Comprehensive Business Plan
This is the most important document. Your business plan tells the story of your business and proves you can repay the loan.
Your business plan must include:
- ✓ Executive Summary: A 1-2 page overview of your business, what you do, and why you need the loan.
- ✓ Company Description: What problem you solve, who your customers are, and what makes you different.
- ✓ Market Analysis: Who are your competitors? How big is your market? What's your target customer profile?
- ✓ Organization & Management: Who's running the company? What's their experience?
- ✓ Products or Services: Exactly what you're selling and how you make money.
- ✓ Marketing & Sales Strategy: How will you find and keep customers?
- ✓ Financial Projections (24-36 months): This is critical. You need month-by-month projections showing revenue, expenses, cash flow, and profitability.
- ✓ Funding Request: How much you need, what you'll use it for, and how you'll pay it back.
Reality Check: Most business plan templates online are too generic. Banks can tell when you've just filled in a template. Your plan needs to show you've done real research and understand your numbers.
4. Additional Documents
- ✓ Resume or CV: Show your relevant experience and qualifications.
- ✓ Collateral Documentation: If you're pledging assets (equipment, property, inventory) as collateral, you'll need appraisals and titles.
- ✓ Debt Schedule: A list of all current business debts, monthly payments, and balances owed.
- ✓ SBA Form 1919: Borrower Information Form (your lender will provide this).
- ✓ SBA Form 413: Personal Financial Statement (standard form for all owners with 20%+ ownership).
The Old Way vs. The MyTinyCEO Way
When I was preparing my loan application, I did everything manually. Here's what that looked like compared to how MyTinyCEO handles it today:
| Task | The Old Way (Manual) | The MyTinyCEO Way |
|---|---|---|
| Financial Projections | Build 36-month P&L in Excel from scratch. Formulas break. Takes 2-3 weeks. | Answer guided questions. AI generates projections in minutes using your business model. |
| Market Research | Google for hours trying to find TAM/SAM/SOM data. Guess at numbers. | Tiny (AI mentor) researches market size for you using current industry data. |
| Cash Flow Statement | Manually track every inflow and outflow. Easy to miss things. | Auto-generated based on your revenue model and expense inputs. |
| Understanding Terms | Google "What is EBITDA?" at midnight. Read confusing articles. | Ask Tiny anything in plain English. Get instant, context-aware answers. |
| Loan Readiness | Pray your numbers are right. No way to validate. | Built-in checks against industry standards. Tiny flags potential issues. |
| Export for Bank | Copy-paste Excel sheets into Word. Formatting nightmare. | One-click PDF export with professional formatting. SBA-compliant. |
MyTinyCEO automatically generates all the financial statements banks require
Real Example: My 4Cast Concrete Application
When I applied for funding for 4Cast Concrete, I needed to show:
- Market size for architectural precast concrete management software (a very niche industry)
- Projected subscription revenue from manufacturers
- Development costs and timeline
- Customer acquisition strategy
- Break-even analysis showing when I could start repaying the loan
The hardest part? Proving my market assumptions were realistic. Banks don't want to see "we'll capture 10% of the market" without backing it up. I had to:
- Research how many precast concrete manufacturers exist in the U.S.
- Estimate how many could afford software subscriptions
- Show comparable SaaS companies in adjacent industries
- Calculate realistic customer acquisition costs
This took me weeks. With MyTinyCEO, Tiny would've researched the market, suggested pricing based on industry comps, and generated financial scenarios (best case, worst case, realistic case) automatically.
The Result: I got the documentation together, but it took 6 weeks of nights and weekends. That's why I built MyTinyCEO—to help other founders do this in hours, not months.
More Examples: Other Business Models
Your SBA loan application will look different depending on your business model. Here are a few examples:
Sarah's E-commerce Store
Business: Online store selling eco-friendly home goods
Loan Need: $75,000 for inventory and marketing
What the bank wanted to see:
- Inventory turnover rates (how fast products sell)
- Customer acquisition cost through ads
- Profit margin per product
- Seasonal sales patterns
- Supplier agreements and payment terms
Marcus's Consulting Firm
Business: Marketing consulting for local businesses
Loan Need: $50,000 for hiring staff and equipment
What the bank wanted to see:
- Client pipeline (current and projected clients)
- Average project value and duration
- Repeat client rate
- Staff utilization rates (billable vs. non-billable hours)
- Client contracts or letters of intent
Alex's SaaS Startup
Business: Project management software for construction companies
Loan Need: $150,000 for product development and early sales
What the bank wanted to see:
- Monthly recurring revenue (MRR) and growth rate
- Customer lifetime value (LTV) and churn rate
- Customer acquisition cost (CAC) and payback period
- Unit economics showing path to profitability
- Product development roadmap and beta customer testimonials
5 Common Mistakes That Kill SBA Loan Applications
I've seen (and made) these mistakes. Avoid them:
1. Overly Optimistic Projections
"We'll hit $1 million in revenue by year 2!" Banks see through this. Your projections need to be backed by realistic assumptions. Show your work.
2. Ignoring Your Competition
Saying "we have no competitors" is a red flag. Every business has competition, even if it's indirect. Show you understand your market.
3. Poor Personal Credit
Your personal credit score matters. For SBA loans, you typically need a 680+ credit score. If yours is lower, work on improving it first.
4. Vague Use of Funds
"We need $100k for growth" isn't good enough. Break it down: $40k for inventory, $30k for marketing, $20k for equipment, $10k for working capital.
5. Missing Documents
Incomplete applications slow everything down. Use the checklist above and make sure you have everything before you apply.
How MyTinyCEO Makes This Easier
After going through this process myself, I built MyTinyCEO to handle the hardest parts:
🤖 AI-Powered Financial Projections
Answer questions about your business, and Tiny generates 24-36 month P&L, cash flow, and balance sheets automatically. All SBA-compliant.
📊 Automated Market Research
Tiny researches your TAM/SAM/SOM using industry data, competitor analysis, and proven methodologies from top business schools.
💬 Plain English Explanations
Don't understand EBITDA or debt service coverage ratio? Ask Tiny. Get instant answers in context, based on YOUR actual numbers.
📄 One-Click Exports
Generate a complete, bank-ready business plan PDF with all required financial statements. No copy-paste, no formatting headaches.
✓ Built-In Validation
Tiny checks your assumptions against industry benchmarks and flags potential issues before you submit to the bank.
🎯 Business Model Detection
Describe your business once, and Tiny customizes the entire planning process for your specific business model (SaaS, e-commerce, service, etc.).
The Bottom Line
What took me 6 weeks to prepare manually, MyTinyCEO does in hours—with more accuracy and less stress.
Final Tips for Your SBA Loan Application
- Start early. Gathering documents takes longer than you think. Give yourself 2-3 months.
- Work with an SBA-preferred lender. They know the process and can guide you through it.
- Be conservative with projections. It's better to under-promise and over-deliver.
- Show skin in the game. Banks want to see you're investing your own money too. Expect to put down 10-20%.
- Tell your story. Don't just submit numbers. Explain why you're passionate about this business and why you're the right person to run it.
- Ask questions. If you don't understand something, ask your lender. There are no dumb questions.
Ready to Apply for Your SBA Loan?
MyTinyCEO is launching November 2025. If you're preparing for an SBA loan application and want early access, I'd love to hear from you.
I'm personally helping a small group of founders get their business plans and financial projections ready. Let's talk about your business.
Contact Me for Early Access