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Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Normally, businesses must meet SBA size standards, be able to repay, and have a sound business purpose.
An OC actively engages in business operations and generates revenue. It leases assets from an EPC and is expected to be profitable to repay the SBA loan.
Both your personal and business credit reports, income tax returns and bank statements will be reviewed. You'll also need to provide business financial statements, including a profit and loss statement, cash flow and balance sheet and a complete accounting of all business debt and creditors.
An EPC doesn't participate in any regular or continuous business transactions. An OC, or operating company, is an eligible small business that is currently or soon will be running a business on real property owned by an EPC. It also may currently or will soon use personal property owned by an EPC.
The SBA Checklist Borrower Information Form. Personal Background and Financial Statement. Business Financial Statements. Business Certificate/License. Loan Application History. Income Tax Returns. Resumes. Business Overview and History.
Anyone applying for an SBA 7(a) loan will need to fill out SBA Form 1919. This includes all stakeholders or principals with at least 20% ownership in the business, trustors or anyone who's been hired to run the general operations of the business.