What documents are required for bank business loans?

Small business loans are available from various sources, ranging from online lenders to traditional banks.

Bank business loans generally offer better interest rates and terms, though they often demand extensive documentation to see whether your business is eligible. If you decide that a bank is the best lender for your financial situation, preparing the necessary business loan documents in advance can help you stay organized throughout the application process.

Familiarizing yourself with your lender’s business loan requirements and specifically what documents are needed for a business loan can ensure no delays with your application.

Business loan documents about yourself

The lender may request personal information to understand how well you manage your personal finances. Information and documents needed for a business loan:

• Personal identification verifying your name, personal address, date of birth and Social Security number
• Banking statements
• Personal tax returns (may or may not be required, but helpful to have on hand)
• Your resume, which can support your creditworthiness as an entrepreneur

Business loan documents about your business

As a rule of thumb, traditional lenders may require more business loan documents than competing online lenders.

Documents about your business that you may need for a business loan:

Founding and legal documents 

• Articles of incorporation
• An operating agreement (if your business is an LLC)
• Information about your business name and registration
• Ownership structure
• Franchise information, if this applies
• License and/or permit documents, if applicable
• Business plan

Business financials

• Your IRS-issued Employer Identification Number (EIN)
• Tax returns
• Profit-and-loss statements
• Banking records
• Your business credit score
• Information about any other outstanding business debts

Other documents needed for a business loan

If you’re applying for a secured loan, you’ll also need to provide collateral information on the assets you’re using to secure the loan. These assets may include equipment, technology, vehicles, real estate and bank accounts.

You may need to include an appraisal to prove the asset’s worth.

Some lenders require a Uniform Commercial Code (UCC) lien filing to formalize their right to your collateral if you default. The lender should generate this as a part of your loan’s closing documents, so you are not responsible for creating it.

Remember to retain a copy and apply for a lien release once you’ve repaid your loan.

Documents for an SBA loan from a bank

Certain SBA loans will require additional business loan documents or forms to apply. You can apply for these loans through traditional banks, though they are funded differently from conventional business loans.

SBA 7(a) loans are the most common type of SBA loan. For these applications, in addition to SBA-specific forms like Form 413 and Form 1920 and the documents listed above, applicants will want to include:

• A summary of the business history and its challenges, as well as information about how an SBA loan will help the business
• Business lease information, if this applies
• SBA forms: SBA 7(a) loans are the most common type of SBA loan. For these applications, you will need to include SBA-specific forms like Form 413 and Form 1919.

If you plan to use your 7(a) loan or another type of SBA loan to buy another business, you will need to include additional documentation about that business, its assets and its history.

Bottom line

Different lenders will require different business loan documents as a part of the loan application process, though many overlap. Ask your bank what documents may be helpful or necessary to substantiate your and your business’s creditworthiness. Having as much information on hand as possible throughout the application process can keep things running smoothly.

Though the application process may be more involved for a conventional bank loan, you may find the terms and rates well worth the effort — especially if you have a well-established business with good or excellent credit.

Frequently asked questions

• What documents does a bank need for a business loan?

  In addition to a complete loan application, you’ll provide the bank with various business loan documents. You can confirm with your bank what documents to bring for a business loan, but you may want to bring financial statements, a business plan, tax returns and collateral details to the bank.

• How long does it take a bank to approve a small business loan?

  Securing a small business loan from a bank can span days to weeks, with processing time largely contingent on the underwriting process.

• How hard is it to get a small business loan from a bank?

  Approval for a bank loan depends on the business’s credit score, time in operation, annual revenue and more. To increase your odds of getting a bank to approve a business loan, you’ll want to present a strong credit history, solid business plan and accurate financial records to demonstrate your financial health and ability to repay the loan.