Contrary to common misconceptions, the Small Business Administration (SBA) typically doesn't directly extend loans to small businesses. Instead, it plays a pivotal role in supporting small businesses by guaranteeing a significant portion, often up to 90%, of these loans provided by lending banks. This assurance helps reduce the risk for banks and enables them to offer low-cost capital to small businesses. In return, the SBA necessitates that small businesses furnish a comprehensive application package as proof of their ability to repay the loan.

The SBA has established an 11-item checklist of essential documentation required for packaging an application for an SBA loan. This checklist encompasses personal history and financial statements, business financials, details on ownership and affiliations, business licenses, and several other crucial documents. For a complete list of these requirements, you can refer to the SBA's website to gain a deeper understanding. Additionally, it's important to note that individual lenders may impose their specific requirements on top of the standard SBA prerequisites.