Thank you Ishan!

All SBA 7A loans include conditions in the loan documents that you provide your annual business tax returns, financial statements, personal financial statement, personal tax returns, and debt schedule annually. However, there is no teeth to the requirement. Namely, if you do not provide it the lender cannot put you in default on your loan for non-compliance with financial reporting without risking putting their SBA guarantee in place. However, we still recommend to all of our clients that they provide it. You want to stay in good graces with your lender because if you ever need assistance in the future they are more likely to help you if you have been providing them the information when they request it. The vast majority of SBA 7A loans do not have financial loan covenants on them. The reason is that if a lender calls a loan due to violation of a covenant and that loan was otherwise current, they risk putting the government guarantee in jeopardy. So 95%+ of lenders do not even both putting covenants in place on SBA 7A loans. So you can lose money every year you operate your business and so long as you stay current on your loan, there is nothing the lender can do about it. If you would like to discuss SBA lending further, you can reach me here or directly at redacted