SBA business plan template

When does an SBA loan require a business plan?

When the business is under two years old, is being bought, or is borrowing to make a step change such as a second location. Established businesses borrowing within their history are often asked only for financials and projections. Microloan intermediaries, the nonprofits that lend up to $50,000 under the SBA program, typically require a plan from everyone.

The lender decides, not the SBA, so ask for its outline first. If it has none, this template matches what most SBA 7(a) and SBA microloan lenders expect in a business plan for an SBA loan, and it works for a bank startup business loan too.

What is in the SBA business plan template?

Nine sections. Keep each to the length shown and put supporting documents in an appendix.

1. Executive summary (half a page)

What the business does, the amount and product requested, what it buys, and the monthly payment against the cash flow that covers it. Write it last.

2. Company description (half a page)

Legal name and structure, state of formation, owners and percentages, start date, location, licenses and affiliates.

3. Market (one page)

Who buys, how many are in your service area, what they pay today, and your three nearest competitors by name, with a source for any figure.

4. Products and services (half a page)

What you sell, price points, gross margin on each, and any contracts or recurring revenue.

5. Management and ownership (one page)

Each owner of 20% or more with role and years of relevant experience; every 20% owner guarantees an SBA loan. Attach resumes.

6. Operations (half a page)

Premises and lease terms, equipment, key suppliers, staffing and hours.

7. Marketing and sales (half a page)

How customers find you, what it costs to win one, and which channels the loan funds.

8. Funding request and use of funds (one page)

Amount, product, term, and a sources and uses table that adds up: the loan, your injection, and each use with a quote behind it.

9. Financial projections and repayment (two to four pages)

Historical statements, a 12 month cash flow, three years of profit and loss, a projected balance sheet, the debt schedule, and the coverage ratio with the math shown.

What do SBA lenders look for in the numbers?

Debt coverage of at least 1.15, an owner injection of typically 10% on startups and acquisitions, and projections that start from your last tax return. Lenders compute coverage as cash available for debt payments divided by all annual debt payments including the new loan, and most want a cushion above the SBA floor; see DSCR explained.

They also read the debt schedule closely, because any loan being refinanced must show a real benefit, and they compare the plan's revenue with your bank deposits. A first projected year 40% above last year's return, with nothing to explain it, will be marked down. Financial projections for a business loan shows how to build numbers that survive that reading.

Which forms and attachments go with the plan?

Two SBA forms and a stack of financial documents. SBA Form 1919 is the borrower information form every applicant signs. SBA Form 413 is the personal financial statement each 20% owner completes, listing personal assets, debts and income. Startups and acquisitions add three years of projections with the first year by month; established businesses add three years of tax returns and year to date financials.

Every file also needs a business debt schedule listing each loan with lender, balance, rate, payment and collateral, plus formation documents, the lease, and quotes or a purchase agreement for whatever the loan buys. The document checklist has the full list; the table below shows what changes with loan size.

How do the 7(a) and microloan versions differ?

A microloan plan is shorter and more personal; a 7(a) plan is longer and more financial. Microloan intermediaries lend up to $50,000, often to businesses banks will not touch, and many pair the loan with training. They want 5 to 10 pages that show you understand your costs and customers, plus a simple 12 month cash flow and your personal budget.

A 7(a) plan for a loan over $350,000 is read by a credit analyst who expects three years of projections, a projected balance sheet, a sources and uses table and collateral detail. Up to $350,000, many lenders lean on credit scoring and ask an established business for a lighter plan. SBA Express loans follow the same rule. In Canada, the Canada Small Business Financing Program and BDC want a similar plan.

How can AI fill the template from your documents?

Paste the template, then your documents, then ask for one section at a time with numbers taken only from what you pasted. Our free business plan builder does the first step: it produces this outline filled with your basics and a prompt for Claude or ChatGPT. The prompts guide has one prompt per section, and the financial projections builder produces the 12 month cash flow, which a chat model should not invent.

Check every number against its source before anything goes to a lender. Then the same documents can go straight into the application: ask your assistant to apply through our MCP server and it fills the form, attaches the plan and submits with your approval. See the agents hub.