🚀 PARTNER ALERT: Planning an exit or looking to acquire? We used Empire Flippers Marketplace to map this calculation matrix. Get a vetted business evaluation on day one.
42-Item Checklist · Organize before your first lender call
Pro tip: Most SBA lenders will want 80%+ of these documents before issuing a term sheet.
Gather everything before approaching lenders to move faster. Buyers who submit complete packages receive
conditional approval 2–3x faster than those who trickle documents over time.
Required = lenders won't proceed without these.
SBA Form = government form, download from sba.gov.
Recommended = strengthens your application.
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Legend:Required Must haveSBA Form Gov formRecommended Strengthens file
Section A — Personal Documents (Buyer)5 items
SBA Form 413 — Personal Financial Statement RequiredSBA Form
Must be signed and dated within 90 days of application. List all assets, liabilities, income sources, and contingent liabilities. Download: sba.gov/document/support--sba-form-413
Government-issued photo ID Required
Driver's license or passport. Copy of front and back if driver's license.
Personal federal tax returns — 3 years (Form 1040 with all schedules) Required
Most recent 3 years. Include all W-2s, K-1s, and Schedule C/E/F if applicable. Lenders need to verify income used on Form 413.
Resume or management biography Required
Emphasize relevant industry or management experience. Online business acquisition lenders look for evidence you can operate what you're buying. 1–2 pages max.
Personal credit authorization / credit pull consent Required
Lender will provide their own form. Most require 680+ credit score minimum; 720+ preferred for SBA acquisitions. Hard pull occurs during formal application.
Section B — Business Being Acquired (Seller-Provided)13 items
Business federal tax returns — 3 years (Form 1120, 1120S, or 1065) Required
Signed copies. Lenders use these to calculate DSCR. SDE/EBITDA must support at least 1.25x debt service coverage on the proposed loan amount.
Profit & Loss statements — 3 years (seller-prepared or CPA-compiled) Required
Must reconcile with tax returns. Lenders will ask about add-backs — document each one with supporting receipts or explanation. Standard SDE add-backs: owner salary, depreciation, one-time expenses, personal vehicle, cell phone.
Year-to-date P&L (current year, within 60 days) Required
If YTD revenue is materially different from trailing 12 months, be prepared to explain why. Declining revenue trend is a red flag for lenders.
Balance sheet (most recent, within 60 days) Required
Shows assets, liabilities, and equity. Lenders use this to confirm there are no hidden liabilities. For asset purchases, the balance sheet helps define what transfers.
Business bank statements — 12 months Required
All business bank accounts. Used to verify revenue deposits match P&L. Discrepancies between bank statements and tax returns are a major underwriting concern.
List of assets included in the sale Required
Domain names, social media accounts, email lists, software, inventory (if any), equipment, trademarks, and other IP. Include estimated fair market values.
Copy of business lease or hosting/platform agreements Required
For online businesses: hosting agreement, Shopify/WooCommerce agreement, Amazon Seller Central ToS, SaaS platform agreements. Physical businesses: commercial lease with landlord contact.
Equipment list with current values (if applicable) Required
For online businesses this may be minimal. Include computers, servers, manufacturing equipment if any. Provide original purchase price and estimated current FMV.
List top 10 customers / revenue sources and their % of total revenue. Lenders flag if any single source is >20% of revenue — document mitigation strategy if so.
Download monthly or annual statements from each payment processor. These are the gold standard for verifying online revenue — lenders trust platform data over seller spreadsheets.
Google Analytics / traffic screenshots (12 months) Recommended
Sessions, users, revenue (if e-commerce GA4 enabled). Export monthly views. Share-of-traffic tools (Semrush, Ahrefs) can supplement. Critical for content and affiliate sites.
Download disbursement reports and monthly performance summaries. Include account health screenshot. Account suspension history must be disclosed.
Articles of incorporation / business entity documents Required
Certificate of incorporation or formation, operating agreement (LLC), bylaws (corporation), EIN confirmation letter (CP-575 or 147C). Must show seller's ownership structure clearly.
Section C — Deal Documents6 items
Signed Letter of Intent (LOI) Required
Lenders need to see agreed purchase price, structure, and basic terms before ordering an appraisal. Use the LOI template included in this pack.
Asset Purchase Agreement or Stock Purchase Agreement (draft) Required
Doesn't need to be finalized at application, but lender will need a draft before closing. Many SBA lenders want to review for any seller financing terms (standby terms must comply with SBA SOP 50 10 7).
Broker listing or seller's asking price justification Recommended
Broker CIM (Confidential Information Memorandum), Empire Flippers / Quiet Light listing, or seller-prepared valuation. Shows how the price was derived.
Purchase price vs. SDE/EBITDA multiple analysis Recommended
Show: trailing 12-month SDE, implied multiple, comparable transactions in the same niche. Lenders may order their own appraisal (required for loans over $500K and often below), but your analysis speeds up underwriting.
Third-party business valuation / appraisal Required
SBA requires a business appraisal for most acquisition loans. Lender typically orders this (cost: $2,000–$5,000) and charges it as a closing cost. Some lenders waive for deals under $250K with strong DSCR.
Non-compete agreement (draft) Recommended
Protects your acquisition — lenders like to see seller is barred from re-entering the market. Standard terms: 2–5 years, geographic scope appropriate to the business type.
Section D — SBA-Specific Government Forms6 items
SBA Form 1919 — Borrower Information Form RequiredSBA Form
Required for all principals owning 20%+ of the borrowing entity. Covers ownership structure, criminal history, citizenship, debarment, and prior SBA loans. Lender provides the form.
SBA Form 912 — Statement of Personal History RequiredSBA Form
Required if any owner has been arrested, charged, or convicted of any crime. Even minor offenses must be disclosed. Non-disclosure is grounds for SBA rejection and potential fraud charges.
SBA Form 159b — Fee Disclosure and Compensation Agreement SBA Form
Required if a loan packager, broker, or consultant is being paid to assist with the application. Discloses any third-party fees. Not needed if going direct to a bank without a broker.
IRS Form 4506-C — IVES Request for Tax Transcript RequiredSBA Form
Authorizes the lender to obtain official IRS transcripts directly. Must be signed for both personal (Form 1040) and business returns (Form 1120/1065). This is how lenders verify the tax returns you submit match IRS records.
Proof of U.S. citizenship or permanent residency Required
SBA 7(a) loans require all principal owners (20%+) to be U.S. citizens or lawful permanent residents. Acceptable docs: U.S. passport, birth certificate + passport, or green card.
Borrowing entity formation documents + EIN letter Required
You'll need to form an LLC or corporation to take the SBA loan. The borrowing entity must be the one acquiring the business. Provide articles of organization/incorporation, operating agreement, and IRS EIN assignment letter.
Section E — Business Plan & Financial Projections8 items
Executive summary (business overview) Required
What the business does, how it makes money, who the customers are, why you're acquiring it, and your post-acquisition plan. 1–2 pages. Make the lender's credit officer understand the business in 5 minutes.
Management plan — your role post-acquisition Required
SBA requires the borrower to be an active owner-operator (not passive investor). Describe your daily involvement, any key employees you're retaining, and how operations will continue uninterrupted post-close.
3-year projected P&L (monthly for Year 1, annual for Years 2–3) Required
Be conservative. Underwriters discount optimistic projections. Base Year 1 on trailing performance with minimal growth (0–10%). Show how you'll cover debt service even if revenue dips 15%.
Debt Service Coverage Ratio = Net Operating Income ÷ Annual Debt Service. Minimum 1.25x required by SBA; most lenders prefer 1.35x+. Use our DSCR Calculator (included in this pack) to model your deal.
Different from P&L — shows when cash actually comes in and goes out. Include loan payment, owner's draw, and any capital expenditures planned post-acquisition.
Market / industry analysis Recommended
Brief section on market size, trends, competition. For online businesses: niche growth trends, SEO market, Amazon/e-commerce category data. 1 page is sufficient. Cite real data sources.
Sources and uses of funds table Required
Clear breakdown: Purchase price, SBA loan amount, buyer equity injection, seller note (if any), working capital reserve, closing costs. Totals must equal exactly. Lenders use this to confirm 10% equity is coming from buyer's own funds.
Proof of equity injection / down payment funds Required
Bank statements showing the 10%+ down payment funds are liquid and available. Gift funds are generally not allowed without specific documentation. Funds must be seasoned (typically 60+ days in account).
Section F — Supplemental (Speed Your Approval)4 items
Letter from seller confirming transition period Recommended
A signed letter from seller committing to train and assist for 30–90 days post-close. Reduces lender concern about key-person dependency risk.
Comparable transaction data / comps Recommended
Recent sale multiples from Empire Flippers, Quiet Light, Motion Invest, or BizBuySell for similar businesses in your niche. Shows the purchase price is reasonable vs. market.
Insurance binder / proof of business insurance Recommended
General liability and cyber insurance for online businesses. Some lenders require proof at closing. Getting quotes early shows professionalism and prevents a last-minute delay.
Attorney engagement letter / acquisition attorney confirmed Recommended
Having a deal attorney already engaged signals seriousness. Your attorney will review the APA, represent you at closing, and handle UCC filings. Estimated cost: $3,000–$8,000 for online business acquisition.
Deal Alert AI // SBA Acquisition Pack // dealalertai.com