2. Collections on accounts receivable —————————-______ ______ ______ ______ ______ ______ 3. Other income —————————-______ ______ ______ ______ ______ ______ 4. Total cash receipts —————————-______ ______ ______ ______ ______ ______ Expected Cash Payments —————————-______ ______ ______ ______ ______ ______ 5. Raw materials —————————-______ ______ ______ ______ ______ ______ 6. Payroll —————————-______ ______ ______ ______ ______ ______ 7. Other factory expenses (including maintenance) —————————-______ ______ ______ ______ ______ ______ 8. Advertising —————————-______ ______ ______ ______ ______ ______ 9. Selling expense —————————-______ ______ ______ ______ ______ ______ 10. Administrative expense (including salary of owner-manager) —————————-______ ______ ______ ______ ______ ______ 11. New plant and equipment —————————-______ ______ ______ ______ ______ ______ 12. Other payments (taxes, including estimated income tax; repayment of loans; interest; etc.) —————————-______ ______ ______ ______ ______ ______ 13. Total cash payments —————————-______ ______ ______ ______ ______ ______ 14. Expected Cash Balance at beginning of the month —————————-______ ______ ______ ______ ______ ______ 15. Cash increase or decrease (item 4 minus item 13) —————————-______ ______ ______ ______ ______ ______ 16. Expected cash balance at end of month (item 14 plus item 15) —————————-______ ______ ______ ______ ______ ______ 17. Desired working cash balance —————————-______ ______ ______ ______ ______ ______ 18. Short-term loans needed (item 17 minus item 16, if item 17 is larger) —————————-______ ______ ______ ______ ______ ______ 19. Cash available for dividends, capital cash expenditures, and/or short investments (item 16 minus item 17, if item 16 is larger than item 17) ———————————————————————– Capital Cash: —————————-______ ______ ______ ______ ______ ______ 20. Cash available (item 19 after deducting dividends, etc.) —————————-______ ______ ______ ______ ______ ______ 21. Desired capital cash (item 11, new plant equipment) —————————-______ ______ ______ ______ ______ ______ 22. Long-term loans needed (item 21 less item 20, if item 20 is larger than item 20) —————————-______ ______ ______ ______ ______ ______ ———————————————————————– Again, if your records do not show the details necessary for working up profit and loss statements, your Federal income tax returns may be useful in getting together facts for the SBA loan application. Insurance SBA also needs information about the kinds of insurance a company carries. The owner-manager gives these facts by listing various insurance policies. Personal Finances SBA also must know something about the personal financial condition of the applicant. Among the types of information are: personal cash position; source of income including salary and personal investments; stocks, bonds, real estate, and other property owned in the applicant’s own name; personal debts including installment credit payments, life insurance premiums, and so forth. Evaluating the Application Once you have supplied the necessary information, the next step in the borrowing process is the evaluation of your application. Whether the processing officer is in a bank or in SBA, the officer considers the same kinds of things when determining whether to grant or refuse the loan. The SBA loan processor looks for: (1) The borrower’s debt paying record to suppliers, banks, home mortgage holders, and other creditors. (2) The ratio of the borrower’s debt to net worth. (3) The past earnings of the company. (4) The value and condition of the collateral which the borrower offers for security. The SBA loan processor also looks for: (1) the borrower’s management ability, (2) the borrower’s character, and (3) the future prospects of the borrower’s business