Loan Readiness Checklist

Fix critical items first — lenders decline packages with missing fundamentals before they even read your plan.

1. 1
   Personal FICO score is 680 or highercritical

   Personal Financial Readiness — Under 680 disqualifies most SBA 7(a) lenders. Pull a free report at annualcreditreport.com.
2. 2
   10–20% cash injection availablecritical

   Personal Financial Readiness — SBA typically requires 10%; conventional term loans want 20%+. Must be seasoned 60+ days.
3. 3
   No bankruptcy or foreclosure in the last 3 yearscritical

   Personal Financial Readiness — SBA 7(a) requires 3 years post-discharge; some lenders 7.
4. 4
   Personal & business taxes filed and currentcritical

   Personal Financial Readiness — Unfiled returns are an automatic decline.
5. 5
   Legal entity formed (LLC, S-Corp, or Corp)critical

   Business Fundamentals — Filed with the Secretary of State, EIN issued.
6. 6
   EIN from the IRScritical

   Business Fundamentals — Free at irs.gov/ein. Required for a business bank account.
7. 7
   Dedicated business checking accountcritical

   Business Fundamentals — No personal transactions commingled — lenders scan 3–12 months of statements.
8. 8
   State/local trade license(s) currentcritical

   Business Fundamentals — Contractor, HVAC, electrical, plumbing — whichever your trade requires.
9. 9
   Profit & Loss statements — last 2 yearscritical

   Financial Documentation — From QuickBooks / Xero / Wave. Sign each page.
10. 10
    Current Balance Sheet (within 60 days)critical

    Financial Documentation — Assets, liabilities, equity. Must reconcile to bank statements.
11. 11
    Business tax returns — last 2–3 yearscritical

    Financial Documentation — Personal returns too — most SBA lenders want 3 years of both.
12. 12
    Written business plan (10+ pages)critical

    Business Plan & Use of Funds — Use the Blue Collar Empire Business Plan Generator to produce a lender-ready version.
13. 13
    Detailed use-of-funds breakdowncritical

    Business Plan & Use of Funds — Every dollar assigned: equipment $X, working capital $Y, marketing $Z.
14. 14
    12+ months of consistent revenuecritical

    Revenue & Contracts — Startups <12 months push you to microloans or 504 — not standard 7(a).
15. 15
    Personal debt-to-income under 40%

    Personal Financial Readiness — Add every monthly debt payment ÷ gross monthly income.
16. 16
    General liability + commercial auto insurance in force

    Business Fundamentals — Minimum $1M GL. Workers comp if you have W-2 employees.
17. 17
    D-U-N-S number registered (Dun & Bradstreet)

    Business Fundamentals — Free. Starts your business credit file separate from your SSN.
18. 18
    12-month cash flow projection

    Financial Documentation — Month-by-month, based on actual booked jobs + realistic pipeline.
19. 19
    Accounts Receivable & Payable aging reports

    Financial Documentation — Fresh from your accounting software, dated within 30 days.
20. 20
    Existing business debt schedule

    Financial Documentation — Every loan, LOC, equipment lease: lender, balance, rate, monthly payment.
21. 21
    Vendor quotes for equipment purchases

    Business Plan & Use of Funds — Formal written quotes on vendor letterhead — not screenshots.
22. 22
    Collateral identified (equipment, real estate, AR)

    Business Plan & Use of Funds — SBA takes what you have; conventional wants 1:1 collateral coverage.
23. 23
    Owner resume showing trade experience

    Business Plan & Use of Funds — Minimum 3 years hands-on experience is table stakes for a skilled-trade lender.
24. 24
    Signed contracts, POs, or recurring service agreements

    Revenue & Contracts — Backlog proves the projections. Attach to the loan package.
25. 25
    No single customer over 25% of revenue

    Revenue & Contracts — Concentration risk kills deals. Show diversification.
26. 26
    Gross margin at or above trade benchmark

    Revenue & Contracts — HVAC/plumbing 35–45%; general contracting 15–25%; mobile mechanic 45–55%.