Build your file

Everything below comes off your own books. Nothing is looked up on your behalf, no credit is pulled, and the figures are scored against six selected published SBA 7(a) thresholds.

Nothing here is an application to a lender or to the SBA. It builds a file you keep and hand over yourself, to whichever lender you choose.

The venture

Start here. This is the only part that is needed -- everything after it can be left blank, and anything you leave blank is reported as not yet available rather than counted against you.

What you want to start, or what you run now

A few sentences in your own words. This is the one thing the document cannot be written without.

Where it is today

If you are not trading yet, the financial questions later ask for your projections instead of history.

The business, if it exists yet

All optional. SBA Form 1919 asks for these when you file, and having them ready is worth knowing about, but none of it is scored and none of it is needed to produce your document.

Business name

If you have one yet. Leave it blank if you have not named it.

City

State

Date established

If it is trading. Under two years adds projections with supporting assumptions to your document set; it does not lower the number.

This is a start-up

Start-ups carry a 10% equity injection minimum under SOP 50 10 8. Existing businesses do not.

Loan request

All optional. The size of the request sets which coverage threshold applies -- 1.15:1 above $350,000, 1.10:1 at or below it as a 7(a) Small Loan -- so leaving it blank means coverage is reported as not yet assessable rather than missed.

Loan amount sought

The figure that decides which published coverage ratio your file is read against.

Total project cost

Everything the project costs, not just the borrowed part. The equity injection minimum is a share of this.

How much of it is working capital

Where half or more of a 7(a) Small loan is working capital, SOP 50 10 8 asks the lender to lien all fixed assets up to the loan amount. Your file says whether that rule reaches you.

Cash flow

All optional. These figures produce debt service coverage, the heaviest dimension at 35 points. If you are not trading yet, enter your projections: SOP 50 10 8 permits coverage on a projected basis, and your document says which basis was used. Leave them blank and the dimension is reported as not yet assessable.

Annual revenue

Most recent full year, or your projected first year if you are not trading yet.

Annual operating expenses

Revenue less this is your net operating income, the top of the coverage ratio. Projected if you are not trading yet.

Annual business debt service

Principal and interest the business pays in a year. This is the bottom of the ratio.

Combined cash flow, business and affiliates

SBA reads coverage globally as well as at the business. This is the top of that second ratio.

Combined debt service, business and affiliates

The bottom of the global ratio, which must reach 1.00x at every loan size.

Balance sheet

All optional. Debt to worth, 20 points, at 9:1 or better, tested against two periods with both having to hold. No balance sheet yet means the dimension is left unassessed, not failed.

Total liabilities, most recent fiscal year

Tangible net worth, most recent fiscal year

Net worth less intangibles such as goodwill.

Total liabilities, current quarter

Tangible net worth, current quarter

Collateral

All optional, and asked class by class because SOP 50 10 8 values each class differently -- new equipment at 75% of price, used at 50% of book, improved property at 85% of market value, furniture at 10%. A single total could not be read against those without guessing at the mix. Nothing is required at or below $50,000, and falling short above it is reported as a shortfall to close: SBA states that a request is not to be declined solely on the basis of inadequate collateral.

New machinery and equipment, at price

Excluding furniture and fixtures, which are asked for separately. Counted at up to 75% of price.

Used or existing machinery and equipment, at net book value

Counted at up to 50% of book value, or 80% where an Orderly Liquidation Appraisal supports it.

An Orderly Liquidation Appraisal supports the used equipment

Tick only if you hold one. It moves used equipment from 50% to 80%, which is the largest single swing on this page.

Prior liens against that equipment

Anything already secured against it. The SOP subtracts prior liens before reading the percentage.

Business real estate with structures, at market value

Land with buildings on it. Counted at up to 85% of market value.

Business land without structures, at market value

Counted at up to 50% of market value.

Prior liens against that property

Where equity is under a quarter of market value, SBA does not ask for a lien at all and your file leaves the property out.

Furniture and fixtures, at net book value

Counted at up to 10%. Not a fixed asset under the SOP, so it sits outside the working-capital test.

Receivables and inventory, at current book value

Counted at up to 10%, and at the lender's discretion: SBA leaves them available to pledge against a line of credit instead.

Equity in personal real estate you would pledge

Counted only above $350,000, where a Standard 7(a) shortfall calls for it. At or below that, SBA permits it and does not require it, so your file does not count it against you.

Equity injection

All optional. 15 points, for start-ups only. SOP 50 10 8 restored a 10% minimum against total project cost.

Equity injection amount

Cash you are putting into the project yourself.

Documents held

10 points, scored as a count. Tick what you already have; anything unticked is listed as outstanding, which is the most directly actionable part of your file.

SBA Form 1919, Borrower Information Form
Business federal tax returns
Interim financial statements
Business debt schedule
Projections with supporting assumptions

Concept and market

These answers are the raw material for the concept and market narrative, which myloankit writes where a business has traded under two years. They are read by the narrative engine and never by the scoring rubric -- nothing here moves the number. They are also the only thing you enter that leaves this service.

The concept

What the venture is, in a few sentences.

What it sells, and to whom

The offering and the type of buyer. Describe the businesses or trades you sell to, not the people of an area.

The trade area

The area the venture draws from and what kind of businesses operate in it. Counting operators is welcome; describing residents is not permitted and will be rejected.

The site

Floor area, access, parking, loading, frontage, and what neighbours it.

Competitors you know of

How many comparable operators, and how close. Counts and distances are the useful part.

The need you believe it serves

What buyers currently do instead, and why the applicant believes this is better for them.

SBA program screen

13 CFR 120.110 names activities the 7(a) programme is closed to. This is a yes or no with no weight attached: whichever you choose, your score does not move by a point.

Does the business fall into any of these?

Choose the one that applies, or the first option if none do.

myloankit is not affiliated with, endorsed by, or approved by the U.S. Small Business Administration. Submitting stores nothing: the result is built from this submission and shown straight back to you. If you go on to download the document, four values are recorded so the file can later be verified — a row number, its reference number, a fingerprint of the file, and the time it was issued. No figure, name or score is stored at any point. What is kept.