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Building a business debt schedule for a lender
A debt schedule gives a lender a usable inventory of borrowing and repayment obligations. Reconcile it to statements and the balance sheet before relying on automatic bank-feed descriptions.
This guide describes common bookkeeping practice, not a legal or regulatory requirement.
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General information, not legal or tax advice.
List borrowing beyond the obvious bank loans
SBA guidance calls for a current applicant-prepared debt schedule, including shareholder debt, in a complete coverage analysis. Review loans from owners alongside institutional borrowing. Keep the creditor, balance, payment terms and supporting statement in the working schedule so informal arrangements are not overlooked.
Separate principal balances from future payments
The SOP defines debt service as future principal and interest on all business debt, including new SBA proceeds. A balance-sheet loan balance is therefore a different measure from the payment obligation. Show both in your practical schedule and reconcile them to the lender documents.
Tie the schedule to actual bank activity
For 7(a) Small loans, SBA calls for review of the two most recent months of commercial bank activity to confirm debts and obligations. Identify recurring withdrawals and determine which belong to debt service. Do not assume an unfamiliar debit is an operating expense without checking its source.
Keep personal supporting schedules distinct
SBA Form 413 separately collects personal notes payable and other liabilities. Maintain a clear boundary between the business schedule and the owner’s personal statement while documenting any connection. Provide both where requested, with consistent as-of dates and explanations for differences from prior financial reports.
Sources: SBA Form 413 (PDF)
Sources: list borrowing beyond the obvious bank loans
Related records and decisions
Reconcile borrowing before a loan review
Tidwell helps reconcile the books and organize supporting schedules for your business decisions. We work with your CPA on tax questions and the financial records they need.