Tell the lender what each dollar is for

Name the project precisely

Describe whether you are opening a new operation, acquiring an existing location or undertaking another specific project. List the major uses of funds with sources: current disclosure documents, vendor quotes, premises estimates and proposed acquisition documents where appropriate. Mark which figures remain provisional.

Separate one-time startup uses from operating cash and from household needs. A single line called franchise costs makes it difficult to examine what is being financed and when the money will be required.

Reconcile sources and uses

Create a matching list of proposed funding sources. Identify money already available, money committed subject to conditions and funds that remain hypothetical. Ask the lender how borrower contributions must be evidenced and what uses the proposed product permits. Requirements depend on the arrangement and current program rules.

Avoid counting the same funds in more than one role. A reserve described as both the owner contribution and the emergency buffer is not two separate pools of money. Ask an accountant to review the reconciliation and the remaining liquidity.

Connect the schedule to disbursement

Payments may be due before loan funds can be released. Ask how deposits, progress payments, reimbursements and closing costs are handled. SBA’s Lender Match preparation checklist emphasizes knowing both the amount needed and its use. A good schedule lets you explain the project and exposes gaps before they become urgent.

Put it on paper

• Give every use a source and estimated due date.
• Distinguish available funds from conditional funding.
• Confirm permitted uses and disbursement timing.

Continue with the franchise research checklist, our FDD guide, and the research directory.