SBA Punchlist for Deal Almost Under LOI

searcher profile

January 22, 2024

by a searcher in New York, NY, USA

I almost have a Self Funded deal under LOI and will be using a SBA Loan. I am curious if there is a punch list of all the information you should have collected and ready to share with prospective SBA Lenders to improve and expedite the process?

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commentor profile
Reply by a searcher
from University of Pennsylvania in Chicago, IL, USA
This is a good time if you don't have already to create a teaser page on the deal (Live Oak has a good example) that you can use to shop around to potential lenders. Do this to see which bankers you like and are excited about the deal at a high level, then narrow in on a couple to get more detailed term sheet (only go into underwriting with one!)

What you'll need to get a deal through will vary a bit based on lender and it's not all needed immediately - pretty standard list includes: LOI, sources & uses, cap table, 3 years corporate tax returns, 12 months of company prepared financial statement, EBITDA adjustments/seller addback, business plan (think not everyone), couple years projections (cash and P&L), couple years personal tax returns, personal financial statement (there's a standard form for this or bank might have one they prefer), personal resume (tailor this to show any relevant experience to the business you're looking to buy)

good luck!
commentor profile
Reply by a lender
in Oakland, CA, USA
Typically we like to see the following in order to generate a term sheet: Last 3 years of personal tax returns, Last 3 years of business tax returns, YTD business financials, personal financial statement, CIM, and LOI.

However, we're more than happy to start discussions before we have all the requested docs, that's just what we need at a minimum to start generating a term sheet.

Feel free to reach out if you want to discuss your deal more in depth. redacted ###-###-####
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