"The plans of the diligent lead surely to abundance." (Proverbs 21:5) Preparation improves the conversation. It doesn't decide the outcome.
Know what lenders weigh
The SBA describes five common factors: creditworthiness, capacity (cash flow), capital invested, collateral, and conditions (SBA). Each lender weighs them differently.
1. Start with the owner's files
Most small-business lenders review owners too, especially for newer businesses. Pull your personal files first — see the files lenders actually see.
2. Look like a company
- Entity registered and in good standing with your state; licenses current.
- A free EIN from the IRS — never pay a third party for it.
- A dedicated business bank account. Keep personal and business money separate.
- A consistent name, address, and phone everywhere.
- A free D-U-N-S Number from D&B and vendors that report your payments.
3. Build a document vault
Commonly requested: 2–3 years of business and personal tax returns, year-to-date profit & loss and balance sheet, recent bank statements, a debt schedule, entity documents, and licenses.
4. Know your capacity
Can the business carry the payment? Build a 12-month cash-flow view and understand your debt-service coverage before you ask.
5. Make a specific ask
Know the amount, the use of funds, and how it pays back. Free help is available from SBDCs and SCORE mentors via sba.gov/local-assistance.
Note: SBA updated its 7(a) and 504 underwriting rules effective October 1, 2026 — see our News page.