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Business Loan Sample Application - Page 7

Filed jointly with spouse?  Information accurate as of..?
In the event you are filing a business loan application and are providing household income that includes income from a spouse, you have to indicate that to the bank and also let them know the date as of which the data is being reported.  If the date of the data that you are giving the lender is more than one year old, they may in turn reject the application and ask you to provide more updated and current information.

Personal Balance Sheet – Assets
Here you would list your cash, securities, liquid assets like money market funds, retirements assets like IRA’s, the value of your personal residence, second home, investment real estate, net worth of business owned, household goods, jewelry, automobiles and other assets.

Personal Balance Sheet – Liabilities
Listed here would be items like your primary residential mortgage balance, home equity loan balance, other real estate loans outstanding, installment loans like auto loans, credit card balances, contingent liabilities like a pending lawsuit (god forbid!), and other debt.  The underwriters will match the information you provide them on a business loan application with the information that they obtain on your from your credit report.

Income & Expense Statement – Annual Income
Here you would detail all sources of income like salaries for you and the joint applicant, rental income from real estate, bonus and commissions, interest income on investments, dividend income on investments, capital gains, partnership income in the event you have any interest in a partnership and other income.  Sometimes lenders will also ask you if you anticipate any significant changes to your income in the next year.

Income & Expense Statement – Annual Expense
On this part of the business loan application is where you would enumerate items like your federal & state income tax liability for the most recent year in which you filed, your rental payments, your mortgage payments for primary, vacation and investment homes, you residential taxes for all these properties, the insurance you pay on the properties as well the cost of your whole life or term life contributions, any alimony or child support payments, medical expenses that you have to pay in excess of your insurance payments, and other living expenses.  Sometimes lenders will also ask you if you anticipate and significant changes to your income in the next year.

Detailed Schedules for asset and liability information
Many times when lenders require you to fill out a personal financial statement they will ask for detailed schedules that itemize the major sections that make up the assets and liabilities information.  It is fairly common to find separate schedules for Securities, Insurance, personal & investment residences, partnership interests & notes payable.  The total values at the end of each of these statements ties into the values in the asset and liability side of the balance sheet – please take care when you are filling out a business loan application to make sure that the numbers in the detailed schedules match up to the numbers in the assets and liabilities of the balance sheet.

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