The exception is if your SBA lender supports online applications, in which case you can submit your letter online. The format of a business loan request letter will typically be on printed 8.5 x 11 inch paper. Of course, you’ll need to edit and adapt this template to match the specifics of your business and the loan you intend to pursue. To simplify this process, think about following this free business loan request letter sample as a guide. Now that you know exactly how to write a business loan request letter, you’re ready to input information about your own business format that will match your lender’s expectations. If you’re profitable, make sure to highlight that because it’s something that many lenders look for in successful applicants.įrom there, consider highlighting specific cash flow projections to show the lender how you plan to fit repayment of the requested principal and interest into your budget. If you have other business debts, make sure to mention that and include a business debt schedule. Use figures from your most recent balance sheet or income statement as evidence to indicate the current financial health of your business. But here, you want to highlight any specific business financials to support your claim that funding your loan will be a low-risk decision for your lender. Of course, the rest of your loan application will contain detailed information about your business financials and help to prove that. Once you describe how you plan to use the loan funds requested, you’ll get to the part in your business loan request letter where you need to demonstrate that you can pay back the loan. Also, you should indicate whether or not you and your leadership team have previous management or industry experience that directly applies to your current business. With respect to describing your partners and management team, be sure to elaborate on the “good character” of these individuals within your business loan request letter. This is because the SBA doesn’t fund businesses that lend money or speculate, nor do they fund passive investments, pyramid sales, or gambling of any sort. Your business loan request letter should also clearly indicate your company’s industry. SBA-backed lenders will need to know how much of your own money you have invested in the business. When you write a loan request letter for an SBA loan, be prepared to share financial details about yourself and any business partners, in addition to specific information about your business’s finances and credit history.

Most lenders will ask you to submit a loan request letter before committing to providing your business an SBA loan. SBA loans are backed by the federal government, so in addition to your lender’s requirements, you also have to comply with any SBA rules.

The SBA loan application process is complicated as is.

Salary advance request letter sample