USDA Loan Application Checklist

Where to Begin with the USDA Application Process

A USDA guaranteed loan may be just what you need to start, operate or expand your business. At Greater Commercial Lending, we make it easy for you to select and apply for the loan program that best fits your business needs.

Use this easy-to-follow USDA loan application checklist to help you gather the information and documents you’ll need for a successful and stress-free application process.

Please note that all forms must be dated and completed/signed to be considered valid.

Initial File Review

Work with the GCL to review and determine the right option for your project! Items with * are required for an inquiry.

• Financials projections for the project, with the first 2 years (minimum) broken out on a monthly basis*
• Borrower’s Assumptions used for the Financial Projections*
• Executive Summary and Narrative Business Plan supporting the financial projections/pro-forma*
• Project Budget*
• Capital Stack/Sources and Uses – Description of the totality of capital invested in the project, including pure debt, hybrid debt, and equity*
• Copies of signed leases (including amendments and extensions), as applicable
  • For leased business properties, a landlord’s consent is required
• Purchase Agreement, as applicable (real estate and/or business opportunity)
• Escrow closing statement, if property was purchased in the last 24 months

Due Diligence Reports

• Appraisal or business valuation – Ordered by the Lender
  • For construction projects, additional information is required
    • Itemized Construction Budget
    • Equipment List/Invoices
    • Drawings/Renderings
• Environmental – Ordered by Borrower or Lender
  • Phase 1
  • National Environmental Policy Act (NEPA) Report and proof of clearance
  • State Historical Preservation Office (SHPO) Report (for historically designated properties)
• Feasibility Study (Page 152/153 of the USDA 5001 PDF)

Borrower/Affiliates/Guarantors

• Borrowing Entity (existing entities)
  • Most recent three years business federal tax returns, including all statements and K1s
  • Most recent three years of CPA Prepared (Compiled, Reviewed or Audited) business financial statements – P&L and balance sheet
  • Year-to-date business financial statements – P&L and balance sheet as of most recent month end (company prepared okay)
    • Please do not provide partial month statements
  • Business debt schedule
    • Debt schedule should reflect debts on the most recent month end statement balance sheet
  • Organizational documents based on type of entity
  • Verification of EIN
• Affiliates
  • Definition from USDA on Affiliate (Page 3 of the USDA 5001 PDF):
    • Affiliate means a person where one of the following circumstances exists: 1) The person controls or has the power to control another person, or a third party or parties’ controls or has the power to control both. Factors such as ownership, management, current and previous relationships with or ties to another person, and contractual relationships, shall be considered in determining whether affiliation exists. It does not matter whether control is actually exercised, so long as the power to control exists. Entities owned and controlled by Indian Tribes, Alaskan Native Corporations (ANCs), Native Hawaiian Organizations (NHOs), Community Development Corporations (CDCs), or wholly-owned entities of Indian Tribes, ANCs, NHOs, or CDCs, are not considered to be affiliated with other entities owned by these entities solely because of their common ownership or common management. 2) There is a family relationship and identical or substantially identical business or economic interests amongst persons (such as where the immediate family operate entities in the same or similar industry in the same geographic area); however, a person may rebut such determination with evidence showing that the business or economic interests are not identical or substantially identical.
  • Three years of Financial Statements
• Guarantors
  • Corporate
    • Most recent three years business federal tax returns, including all statements and K1s
    • Most recent three years of CPA Prepared (Compiled, Reviewed or Audited) business financial statements – P&L and balance sheet
    • Year-to-date business financial statements – P&L and balance sheet as of most recent month end (company prepared okay)
      • Please do not provide partial month statements
    • Business debt schedule
      • Debt schedule should reflect debts on the most recent month end statement balance sheet
      • Organizational documents based on type of entity
      • Verification of EIN
  • Individual
    • Personal Financial Statement
      • Include Schedule of Real Estate
    • Most recent three years of federal tax returns, including all schedules and K1s
    • Resume for each guarantor and a description of their involvement in the project

Construction Projects

• Copies of the site plan, floor plan and building specifications, renderings and a narrative overview of the project
• Copies of all permits to date. Final permit approval is required for the submission of the loan for approval
• Engineering contract
• Architectural contract
• Construction contract (AIA Form) and construction timeline
• Fixed cost budget (AIA form) and detailed list of materials
• Copy of current contractor’s license
• Resume and list of the contractor’s recently completed projects
• The contractor’s most recent three years of federal tax returns
• The contractor’s year-to-date P&L and balance sheet, as of the most recent month end
• The contractor’s current WIP report to match most recent month end balance sheet
• The contractor’s liability and worker’s comp proof of insurance
• Bonds held by the contractor