Top Loan Documents You Need and How to Prepare Them
Missing documents. Incomplete forms. Numbers that don’t add up. According to Arlena Minter, Loan Officer at Michigan Women Forward, these are some of the most common reasons small business loan applications get stuck. The good news? A little preparation goes a long way — and it starts with knowing exactly what lenders are looking for.
“Your paperwork tells the story of your business,” Minter explains. “It helps us understand where you are, where you’re going, and how well you’re positioned to handle debt.”
To help demystify the process, Minter breaks down the top loan documents MWF looks for and shares tips for making sure you’re fully prepared before you apply.
1. Business Plan
A strong business plan is the foundation of your loan application. It should clearly explain what your business does, who your customers are, and how you plan to generate revenue and manage expenses.
“We don’t need a 40-page document,” Minter says. “But we do need to see that you’ve thought about your market, your pricing, and your ability to repay the loan. You’d be surprised how many people skip this step.”
What to include:
- Executive summary
- Description of products or services
- Target market and competition
- Marketing strategy
- Financial projections
- Ownership and management structure
Organizations like Build Institute and Score.org offer workshops to help prepare a business plan.
2. Financial Statements
At a minimum, MWF requires a Profit & Loss (P&L) Statement, Balance Sheet, and Cash Flow Statement — ideally from the most recent 12 months.
“These documents show us how your business is performing and where your money is going,” Minter explains. “If your books aren’t up to date, that’s a red flag.”
What to include:
- Year-to-date and prior year P&L statements
- Current balance sheet
- 12-month cash flow forecast
If you’re not sure how to create these, a bookkeeper or accounting software like QuickBooks can help. MWF may also recommend financial technical assistance to help you get organized.
3. Tax Returns
For businesses more than a year old, MWF requests the last three years of business tax returns, as well as personal tax returns for all owners with at least 20% ownership. If the business has been open less than a year, MWF requires three years of personal tax returns.
“Lenders want to verify the numbers you report in your application,” Minter says. “Your tax returns provide that backup.”
Make sure your returns are complete, signed, and consistent with your other financial documents. If you’ve filed for an extension, provide documentation.
4. Personal Financial Statement
Even though you’re applying for a business loan, your personal finances still matter — especially for small businesses or sole proprietors.
“Most people don’t realize that if your business is small or new, we also need to assess your personal financial position,” Minter says. “We look at things like income, debt, and household expenses. We also look at the bank statements as proof of funds invested in the business or ‘skin in the game.’”
What to include:
- Assets (bank accounts, property, investments)
- Liabilities (mortgages, car loans, credit card debt)
- Monthly income and expenses
5. Bank Statements
MWF asks for the most recent three months of business and personal bank statements. This helps verify cash flow and gives insight into your day-to-day financial management.
“If your bank statements don’t match what’s on your financials, we’ll ask questions,” Minter says. “It’s not about catching mistakes — it’s about making sure we understand your real picture.”
Don’t overdraft, bounce checks, or commingle business and personal funds. These are signs of poor financial management to lenders.
6. Business Documentation
Depending on your business structure, you’ll also need to provide legal and administrative documents, such as:
- Business license or registration
- Articles of incorporation or organization
- Operating agreement or bylaws
- EIN (Employer Identification Number)
- Lease agreement (if applicable)
“These documents help us confirm that your business is properly formed and in good standing,” Minter says, and they are required before MWF is able to underwrite the loan.
Keep all your business paperwork in one place — ideally, scanned and stored digitally.
7. Debt Schedule
If you already have loans or credit lines, you’ll need to submit a current debt schedule showing balances, payment amounts, and terms.
“We use this to evaluate your repayment capacity,” Minter explains. “If your existing debt load is high, we may recommend waiting or refinancing before taking on new debt.”
Be honest and accurate. Leaving off debts can slow down the process or impact your credibility.
How MWF Helps
Don’t worry if you don’t have all of these documents perfectly assembled yet — MWF is here to help. Minter and the rest of the lending team work closely with entrepreneurs to make sure they understand what’s needed and how to strengthen their application.
“We’re not like a traditional bank that says ‘yes’ or ‘no’ and moves on,” she says. “We want to see you succeed — and we’ll work with you to get there.”
