Loan Checklist

Obtaining business financing can seem daunting, but a majority of the work is simply collecting and organizing information you already have. Each loan application is considered on its own merits. To review the specific details of your situation, please contact someone from our economic development team.

The following items and tasks are commonly required as part of the lending process:

1. Determine the uses and total cost of the project for your loan request
2. You can expect to be asked for copies of key project-related documents such as real estate purchase agreements, contractor cost estimates, and vendor quotes for machinery and equipment.
3. Finalize or update your business plan, and consider having a small business development center review it. A resume summary for each owner and an overview of your management team’s experience should accompany your business plan.
4. Update three years of historical financial statements for the operating business including the balance sheet and income statement.
5. Prepare interim financial statements within the past 90 days, including agings of accounts receivable and accounts payable.
6. You may be asked to make a personal guarantee on the loan. Organize personal statements dated within the last 60 days for each proprietor, partner or stockholder with 20 percent or more ownership in the operating business, as well as for each officer and director (regardless of ownership).
7. Devise at least three years of proforma financial projections for the operating company, including balance sheet, income statement and assumptions.
8. Collect signed tax returns for the past three years for both the operating business and personal guarantors.
9. Schedule of debts, each of which includes: the original date and amount, monthly payment, interest rate, present balance owed, to whom payable, and securing collateral.
10. Lease agreements for the operating company or held by the operating company.
11. Other documents requested (depending on type of loan) may include an appraisal, environmental reports, franchise agreement, insurance, environmental reports, etc. If applicable, list the names of any affiliated or subsidiary businesses, as well as the last two fiscal-year-end statements and a current financial statement for each of these firms.
12. Disclosure and written explanation of tax liens, pending lawsuits and bankruptcies. This does not automatically disqualify a loan applicant, so honesty is appreciated.
13. Depending on a variety of factors, owners can expect to put in some level of equity into the project.
14. State the property and assets that can be held as collateral for the loan.
15. A CityWide Development commercial loan application should be completed, including an estimate of how many Dayton-based jobs will be created or retained as a result of the financing.
16. Consider retaining legal counsel or a CPA to help prepare and review required business documentation.