Demystifying The SBA Loan Application - SBA Schedule of Liabilities Form 2202

4:35
 
Share
 

Manage episode 265876983 series 2518941
By Ryan Smith. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Form 2202 must be completed on behalf of the subject business requesting the loan and all affiliate businesses.

Affiliate businesses are defined by the SBA as any business owned 51% or more by a 20% or more owner of the subject business.

Form 2202 documents the subject business and affiliate businesses monthly debt obligations which is essential to determining the debt service coverage ratio or dscr for short and debt to tangible net worth ratio also known as leverage.

Both The dscr and debt to tangible net worth ratios are key indicators used by lenders to determine the businesses ability to repay the requested loan.

42 episodes