2026-01-14
SBA 7(a) Approval Checklist for Companies
Preparing for an SBA 7(a) loan can feel complex, but companies that organize documentation early move faster through underwriting and secure stronger loan terms. This approval checklist outlines everything lenders prioritize during review and helps companies submit a complete, lender-ready file.
For companies that need detailed guidance, see SBA Loan Requirements and The SBA Loan Process for deeper detail.
1. Core Financial Documentation
SBA lenders must verify performance, stability, and repayment capacity. Companies should prepare:
- Three years of business tax returns
- Year-to-date P&L and balance sheet
- Current debt schedule
- AR and AP aging reports
- Most recent personal tax return for all 20 percent or more owners
- Personal financial statements
- Bank statements to confirm liquidity
Missing or inconsistent documentation is the most common cause of delays. For a detailed breakdown, review Common SBA 7(a) Application Mistakes.
2. Equity and Liquidity Expectations
Most SBA 7(a) acquisition loans require at least 10 percent equity. Equity can include:
- Buyer cash
- Full standby seller note
- Retained earnings
- Documented gift funds
For a deeper explanation of equity options, see SBA 7(a) Down Payment Requirements Explained.
3. Management and Operational Strength
Lenders evaluate whether the team can operate the business successfully. Include:
- Resumes for key managers
- Description of roles and responsibilities
- Organizational chart
- Transition or training plan if purchasing a business
Strong management narratives often reduce underwriting questions.
4. Business Plan or Project Summary
This should clearly outline:
- Business overview
- Market landscape
- Detailed use of proceeds
- Pro forma financials tied to measurable assumptions
Companies can reference Top Ways Companies Use SBA 7(a) Loans when building their use-of-proceeds narrative.
5. Collateral and Asset Overview
The SBA requires lenders to document collateral, even if the loan is not fully secured. Include:
- Real estate schedules
- Equipment lists
- Vehicle titles
- Inventory reports
- UCC filings
More details on collateral expectations can be found in SBA guidelines
6. Credit Review and Compliance
Owners should review:
- Credit reports
- Past due accounts
- Liens or judgments
- Status of any government-backed loans (EIDL, PPP)
For businesses with credit concerns, Port 51 Lending provides structured guidance: How to Get an SBA Loan
Key Takeaway
Companies that prepare documents early and understand lender expectations consistently close faster and with fewer conditions. Port 51 Lending specializes in packaging lender-ready files and guiding companies through the full SBA loan process from application to funding.
FAQs
