Navigating the SBA 504 loan process may seem intimidating or cumbersome at first, but the professionals at GTCC have years of industry experience and we are here to help. Our years of experience will benefit you in every step of the process; we will do our best to make the process less intimidating and cumbersome.
GTCC uses a very hands-on approach and will do whatever we can to assist you in completing the loan application process. What follows is our guide to 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, and what steps you will take to ensure ability to repay this loan. By providing both your lender and GTCC with this information, you will help us to better understand your business, enabling us to move the application process forward and obtain approval more quickly.
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. Your business plan provides an overview of the loan request and the company’s repayment ability.
The plan should describe the type of business that you own, when it was established, the ownership of the business, specific information about your product or services, your target market, competitor information, and include a financial overview of your business. All of this information should be used to demonstrate your knowledge of your business and how it will be successful.
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 along with these documents.
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 flyers on the property. If you are using loan proceeds to construct a building or purchase equipment, it is important that the bids or estimates that you submit from third party sources (e.g., building or equipment vendors) support your loan request amounts.
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 have to be ordered prior to submission to determine the asset value and goodwill value of the purchase price.
GTCC has gained a reputation for having extensive industry knowledge used to provide superior service, meeting the needs of our borrowers and referring loan partners. We are here for you through every step. Please contact us if there is anything we help you with throughout the loan process.