What to expect when applying for a commercial mortgage
By Beth O'Connell • Bankrate.com

The lender will want to hear/see:

Purpose of the loan History of the business Financial statements for three years Schedule of term debts Projected opening-day balance sheet (new businesses) Lease details Amount of investment in the business by the owner(s) Projections of income, expenses and cash flow Signed personal financial statement(s) Personal resume(s)

The SBA will be looking for:

Good character Management expertise and commitment necessary for success Sufficient funds, including the SBA-guaranteed loan, to operate the business on a sound financial basis Feasible business plan Adequate equity or investment in the business Sufficient collateral Ability to repay the loan on time from the projected operating cash flow

Source: U.S. Small Business Administration

Beth O'Connell is a freelance writer based in Florida

-- Posted: May 6, 1999