The fourth step in the SBA 7(a) loan process is the borrower gathering and preparing the documents requested by the lender. These documents offer a comprehensive view of the borrower and the business’s operations, financial health, and legal standing. This step is foundational, as the provided documents will form the basis of the lender’s loan evaluation.
Given its importance, this step requires attention to detail. It’s the borrower’s responsibility to ensure that every document is complete, accurate, and up-to-date. Any discrepancies or missing information can lead to delays or adversely affect the loan decision.
This is perhaps the longest step of the loan process, as it takes time to gather and prepare the necessary documents [See: How Long Does the SBA 7(a) Loan Process Take?]. The borrower does the work for this step, so they have control of how quickly it’s completed, and by extension how quickly the loan process is completed. As such, completing this step efficiently and effectively is a way for the borrower to notably speed up the loan process.
Note: A list of commonly required documents can be found on the page for Step 3: Initial Document Request.
Tips for Document Gathering and Preparation
Here are some tips to help your document gathering and preparation go as smoothly and speedily as possible:
• Prepare Documents in Advance
The lender will provide you with a list of the documents they require, but many of these are common to all SBA 7(a) loans. Preparing as much as you can ahead of time will save time, shortening the loan process.
Note: A list of commonly required documents can be found on the page for Step 3: Initial Document Request. All of them can be gathered or prepared in advance.
• Utilize Professional Help
It’s recommended to outsource things like the preparation of financial and legal documents to professionals. This ensures the documents are prepared correctly.
• Ensure Completeness and Accuracy
Make sure that every document is complete and that all information is accurate and up-to-date. This ensures the best possible loan outcome and prevents needing to go back and complete/redo documents.
