Navigating the SBA 504 loan process may seem intimidating or cumbersome at first, but the professionals at GTCC have years of industry experience and take a very hands-on approach to help you every step of the way.

Below is our guide to help you get started, but feel free to contact us directly if you have any questions.

The key to getting a loan package submitted efficiently is preparation. Before you talk to your lender, you should be able to:

• Describe your business
• Explain how the desired loan will benefit your business
• Outline what steps will be taken to ensure repayment of this loan

 By providing both your lender and GTCC with this information, you will be helping us to move the application process forward and obtain approval more quickly.

Business Plans

Writing a business plan can be time-consuming, but doing so will cause you to think critically through all aspects of your business and the products or services it provides. All this information should be used to demonstrate your knowledge of your business and how it will be successful. Your plan should include:

• Type of Business
• Date Established
• Ownership of the Business
• Specific information about products or services
• Target Market
• Competitor Information
• Financial Overview

If you’ve never written a business plan, the SBA website offers a step-by-step Build Your Business Plan tool to help you get started. Save your work at any time and pick up where you left off. Your information will be saved for up to six months.

Business Financial Statements

Your lender and GTCC will need to see business financial statements for the past two years, including balance sheets and profit/loss statements. You should also include current (i.e., no older than 90 days) interim financial statements, as well as business federal income tax returns for the previous two years.

Cash Flow Projections

For some projects, we will require detailed financial projections for the business; month-by-month for the first 12 months, and annual projections for the first 3 years. Cash flow projections should provide detailed assumptions explaining the basis for the figures included, i.e. how you expect the business to achieve these projections. We’ve provided a Projections Form for your convenience.

Credit Rating Report

It is important to be familiar with your business and personal credit ratings to be sure that there are no surprises in either report. You will want to correct any mistakes or problems before submitting your loan application.

Personal Financial Statements

Personal guaranties are required from anyone owning 20% or more of your business for all SBA loans. Therefore, personal financial statements and personal cash flow information for these individuals must be included.

These personal financial statements should list all personal assets, liabilities, and monthly payments (see forms section for statements). Personal federal income tax returns for the previous two years should also be included.

Collateral

We will need a detailed description of the asset(s) to be purchased with loan proceeds. This includes purchase contract(s) as well as any marketing materials. If you are using loan proceeds to construct a building or purchase equipment, the bids or estimates that you submit from third-party sources (e.g., building or equipment vendors) must support your loan request amounts.

Legal Documents

We will require submission of several legal documents, including:

• Business licenses and registrations required for you to conduct business
• Articles of Incorporation
• Partnership Agreements
• Copies of contracts you have with any third parties
• Franchise Agreements
• Commercial Leases

To see a complete listing, click Required Business Entity Documents

Buying an Existing Business

If you plan to use an SBA 504 loan to purchase an existing business, you will need to provide the following for that business:

• Current balance sheet and profit and loss statement within 90 days
• Federal income tax returns for the previous two years
• Your own set of projections and assumptions
• Terms of the sale, including asking price and list of inventory, machinery or equipment, and furniture
• An appraisal will be ordered before submission to determine the asset value and goodwill value of the purchase price.