My fiance & I are in the process of applying for an SBA loan for a start-up business. We have our business plan complete and are talking with a lender, but have not applied to SBA yet. We've been told to be prepared to contribute 30% of the loan ourselves.

Our question is...do we have to show this 30% sitting in a bank account, or is it just that they'll only loan us the 70% & it's up to us to come up with the remaining 30%?

Thanks!

They are going to want to know if you have the money or where it is coming from. I know I would.

Thank you for your quick response!

Of course, so would I. I ask because some of it is in stocks & stock options, and a refi on the mortgage (which we were also considering using the same lender for, especially if it would help our SBA loan). I just didn't know if declaring the stock ownership is enough, or do I need to liquidate & deposit them into a bank account prior to receiving the loan funds? If I don't have to sell them right away, what documentation do I need? Thank you!

A broker's statement and bank statements are a good thing to add as attachments. I would have them ready, but not submit unless they are requested. Lenders will take your financial disclosures as honest since you will be required to sign them. However, some might have implemented procedures requiring those statements as attachments.

In addition, they will likely request that either your money goes in first or that their money will get staged in on a pari passu basis with yours.