cover letter for a loan request

WTO / Applications / 20 Best Loan Application Letter Samples (Guide and Format)

20 Best Loan Application Letter Samples (Guide and Format)

An application letter for a loan is a formal letter written to a financial institution by a borrower requesting a loan, payable in a specified amount of time.

The letter helps lenders get acquainted with the borrowers better to determine if they qualify for the loan based on the information provided or not. Writing it is important because it helps convince lending institutions to lend you a specific amount of money. It is their first impression of you, which is why it should be written with great care. In this article, we will guide you on how to write it, the type of information you should provide, and some pointers that will help you highlight your strengths in the letter.

Brief Overview- What to Include

There are no strict rules for writing an application for a loan. It depends on the borrower to decide what information to include, but the following items are typically included in it:

• Contact information
• Explanation of why money is needed
•  Amount of money being requested
• Purpose of the money
• Details about employment history
• Personal references
• Company information
•  A list of supporting documents

When to Write?

Two main situations warrant this letter. The first instance is when you are seeking a loan from a conventional bank lender. Conventional bank lenders are financial institutions that do not offer loans but make them available to the general public. Conventional banks usually require applicants to submit this application to prove their creditworthiness.

The second situation that warrants its use is when applying for an SBA-guaranteed loan. An SBA-guaranteed loan involves the federal government; applicants must undergo additional screening before they are approved for funding. Applicants can improve their chances of getting an SBA guarantee by submitting a personalized, formal loan application with supporting documentation.

There are situations when you do not necessarily need to write this letter, such as when you are borrowing from friends and family, from an alternative lender who may only require your bank statements or pay slips, when seeking equipment financing, and lastly when you are requesting a business line of credit.

Free Templates

Pre-writing Considerations

Applying for a loan involves being prepared for anything, so it is important to have the things you need before writing. Do some research on your lender, and write down notes about why they are suitable for you and what you would like them to know about your project. Write those questions that may arise during the process of applying for your loan. Check your credit score and know your rights as a borrower when you apply for a loan.

After you have done all of the above, review everything and ensure that what you’ve written is easy to understand by someone who has not read your notes or audited your finances. When applying for a loan in a major financial institution or applying for an SBA loan, you will almost always be required to write an application letter for a loan. It is important to note that unless it is supported by a sound credit situation or proper financial planning, it may not be enough to help you secure the loan. 

Fortunately, there are two things that you can do to increase your loan limit and increase your chances of getting a loan. You can first check your business and personal credit scores from accredited credit reporting bureaus such as TransUnion, Equifax, and Experian and take the necessary steps to improve them.

The second thing that you can do is to prepare your business financial statements, i.e., your profit and loss statement, cash-flow statement, balance statement, etc., for the past six months and attach them to your letter. These documents are essential when applying for a loan as they help the financial institution assess your creditworthiness and increase your chances of securing a loan.

How to Write a Loan Application?

Writing it can seem daunting, but it can be a simple process if you follow the proper format and include all the required information.

The following is a summary of the information you must provide in your letter:

The header is an integral part of the standard business letter format. It should include:

• Your name and contact information : Make sure to include your full name, address, and contact information. This should include a mailing address with a zip code, a business email address, and your cell phone number where you can be reached.
• The date : Include the month, day, and year of the letter. You must ensure that you write the date on which the letter was created.
• The name of the recipient : This will be a bank representative in many cases, but it can also be an SBA representative or another financial institution to whom the borrower is addressing the letter.

Subject line

When writing it, make sure to include a clear subject line that will help the recipient understand the purpose of the letter. Make sure to include whether the loan is for personal or professional use in the subject line.

“Loan Request Application Letter.”

Address your letter correctly. If you do not know who will be reading it, write “ To Whom It May Concern .” If you are trying to get a business loan, address it to the company’s representative issuing the loan. If you are applying for a personal loan, address it to the bank or whoever provides it.

Introduction

It should begin with a brief statement of the goal and amount you are requesting. It should also state your qualifications for the loan and any other pertinent information that can be used for your evaluation as a borrower such as your financial status, your work history, the length of time you have been in business, etc.

The body is the main part of the letter, and it should contain all the information the recipient will need to decide whether to grant the loan or deny the request.

Some of the information that must be covered in the body includes:

• Basic business information : If you are writing it, the first item to include in the body of the letter is details about your business. This information will help the lender understand who you are and will serve as the foundation for your loan application. Some of the information that you should cover in this section includes your business’s registered name, business type (i.e., partnership , sole proprietorship, LLC , etc.), nature of your business (i.e., what you do), main services and products, your business model, the number of employees that you have, and your annual generated revenue.
• The purpose of the loan : You must explain why you need the loan and the purpose for which it is being requested. This can be to purchase or expand a business, for a personal reason, or to pay some debt.
• Present yourself as being trustworthy : To get a loan, you need to establish trust with the lender. This can be achieved by explaining what you do for a living, providing some identity documents, and demonstrating why you deserve to be trusted.
• Explain how you intend to pay back : Explain briefly how you plan on repaying the loan. This should include a timeline for repayment and be supported by evidence such as a business plan, personal financial statement, or credit report .
• Proof of financial solvency : In some cases, you will be asked to provide evidence that the funds requested are not your only source of income. Documents like bank statements or tax returns can help you prove that you have other sources of funding, which will increase the likelihood that your request will be granted.

In the conclusion, you must thank the lender for considering your request. Briefly mention all the attached financial documents. Remember that each lender has their own set of loan application requirements and may request different information or documentation from borrowers, so make sure to double-check the specific instructions provided by the lender.

Once you have finished writing the letter, be sure to sign it at the bottom. You may include phrases such as:

“Respectfully yours” or “Sincerely yours”.

Place your name and contact information directly above the signature line.

SBA Loan Application Letter Template

[Your Name]

[Your Address]

[City, State ZIP Code]

[Your Phone Number]

[Your Email Address]

[Loan Officer’s Name]

[Bank Name]

[Bank Address]

Dear [Loan Officer’s Name],

I am writing to apply for a Small Business Administration (SBA) loan to help fund my [business name]. I am excited to have the opportunity to present my business plan to you and explain why I believe my business is a great candidate for an SBA loan.

[Provide an introduction to your business, including its history, products or services offered, and unique selling proposition. Explain why you started the business and what sets it apart from competitors. This should be no more than two paragraphs.]

I am seeking an SBA loan in the amount of [$ amount], which will be used to [briefly explain how the funds will be used]. My business has experienced steady growth in recent years, but we need additional capital to take advantage of new opportunities and expand our reach.

[Provide a detailed explanation of how you plan to use the funds, including any expected return on investment. Be specific about the amount of money you need, how long you will need it for, and how it will be used.]

As part of my loan application, I have included the following documents for your review:

• Business plan
• Financial statements for the past three years
• Tax returns for the past three years
• Cash flow projections
• Articles of incorporation
• Personal financial statements for all owners

A list of collateral that will be used to secure the loan, if applicable

[Provide a comprehensive list of all the documents you have included with your application. Make sure you have included everything the bank has asked for, and any additional documents that may be relevant.]

I am confident in the future success of my business and believe that an SBA loan is the right choice for us. I understand that the loan application process can be lengthy, and I am committed to providing any additional information or documentation that may be required to support my application.

Thank you for considering my loan application. I look forward to hearing from you soon.

Loan Application Letter Sample

Make your small business loan application more polished with our simple sample letters. They’re crafted to help you convey your needs professionally and improve the impact of your request. 

Sample letter 1

Dear Sir/Madam,

I am writing to apply for a Small Business Administration loan to support my growing business, GreenTech Innovations. Established in 2018, we specialize in eco-friendly technology solutions. Our recent market analysis indicates significant growth potential in sustainable energy products.

To capitalize on this opportunity, we require additional funding for research and development, marketing, and expanding our team. An SBA loan would enable us to invest in these critical areas, fostering innovation and job creation. Our business plan, attached to this application, outlines our strategy for a sustainable and profitable future.

GreenTech Innovations has a strong financial track record, with consistent revenue growth over the past three years. We have maintained a healthy cash flow and have a solid plan for loan repayment, as detailed in our financial projections. Our commitment to financial responsibility and strategic growth makes us an ideal candidate for an SBA loan.

Thank you for considering our application. We are committed to contributing positively to the economy and the environment. Your support would be instrumental in helping us achieve our goals.

Jordan Smith

Owner, GreenTech Innovations

Sample letter 2

Dear Business Loan Officer,

I am reaching out to request a business loan for my company, Bella’s Boutique, a unique clothing and accessories store located in downtown Springfield. Since our opening in 2019, we have become a beloved part of the local community, known for our exclusive designs and personalized customer service.

This loan is sought to enhance our inventory, upgrade our in-store technology, and expand our online presence. These improvements are essential for keeping pace with the evolving retail landscape and meeting the growing demands of our customers. Our detailed business plan is attached for your review.

Financially, Bella’s Boutique has demonstrated resilience and growth, even amid challenging economic times. Our sales figures have shown a steady increase, and we have a clear plan for managing the loan and ensuring its repayment. We believe these factors make us a strong candidate for a loan.

Your consideration of our loan application is greatly appreciated. This funding will not only help Bella’s Boutique thrive but will also support the local economy by providing more employment opportunities and enhanced retail experiences.

Thank you for your time and consideration.

Warm regards,

Isabella Martinez

Founder, Bella’s Boutique

The effectiveness of these sample letters as a guide for someone seeking to write a loan application lies in several key aspects. Firstly, they demonstrate the importance of a clear and concise introduction, where the purpose of the letter is immediately stated, ensuring the reader understands the intent from the outset. This is crucial in any formal business communication. Both samples skillfully describe the nature and background of the respective businesses, providing just enough detail to give the reader a sense of the company’s identity and market position without overwhelming them with unnecessary information. This balance is vital in maintaining the reader’s interest and establishing the context of the request.

Moreover, the letters excel in explicitly stating the purpose of the loan, which is a critical component of any loan application. They outline how the funds will be utilized to grow and improve the business, demonstrating not only a clear vision but also a strategic approach to business development. This helps in building a sense of trust and reliability with the lender. Furthermore, the inclusion of financial health indicators, such as past revenue growth, cash flow management, and a repayment plan, adds to this trust by showing financial responsibility and foresight.

The writers also incorporate attachments like business plans and financial projections, which provide additional depth and substantiation to their claims. This shows thorough preparation and professionalism, which are highly regarded in the business world. Finally, the tone of the letters is appropriately formal yet approachable, and they conclude with a note of gratitude, reflecting good business etiquette. This combination of clarity, conciseness, relevance, and professionalism makes these letters exemplary guides for anyone looking to draft an effective and persuasive business loan application.

Tips for Writing

Following are some tips for writing this letter:

Be specific

Be sure to include specific details in it to keep the reader’s attention. Ensure that you include information about the purpose of the loan, how much money you need, and the reason why you are a good candidate for a loan.

Brevity is essential when writing this letter. Stick to the essential points and avoid extraneous details. This will help to ensure that your letter is easy to read and that the reader is not distracted by irrelevant information.

Address the appropriate person

Ensure that you address your letter to the most relevant party for your particular situation.

Consider contacting the bank to find out to whom it should be addressed. This is how you can be sure that it will get to the right person.

Use a proper format and layout

As with all letters, you should use clear, concise paragraphs and avoid unnecessary jargon. Make sure to use the appropriate format for formal letter writing and use a professional, polished layout.

Include business financial statements

The financial statements for your company must be attached to your letter if you are a business owner. In this way, the reader will better understand your overall financial situation and help demonstrate that you are a good candidate for a loan.

The following are some of the purposes for which you may request a small business administration loan: to start a new business, to buy new equipment or inventory for your company, to upgrade or expand an existing business, to cover unanticipated expenditures, to pay off high-interest debt, to fund marketing campaigns, to move your office to a new location, to buy insurance for your business, to purchase stock, to buy out shareholders, and for any other lawful reason authorized by the lender.

Key Takeaways

Here are the key takeaways from this article:

• When writing an application for a loan, be sure to provide specific details about the purpose of the loan, how much money you need, and why you are a good candidate for a loan.
• Use the standard business letter format and use clear, concise paragraphs.
• Brevity is vital when writing such a document, so mention only the essential points and avoid extraneous details.
• Address your letter to the most relevant party for your situation, and be sure to include your company’s financial statements.

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Cover Letter for Loan Request

Most loan requests must follow defined procedures for making the application, often including filling in quite a few pre-selected, generic forms. When it comes time to lodge the application, however, you'll need to include a brief cover letter with your application and this is your chance to stand-out. Both the content and format of this type of cover letter should reflect the formal nature of a loan request, but be strong enough to stick in anyone's mind when it comes time to approve your loan.

Content of a Cover Letter for a Loan Request

Explain how the loan will be used and highlight the particular strengths of your plan. If there are any weakness to your plan, explain how these will be overcome. Be sure to mention any previous conversations or understandings you may have had with the letter recipient about your loan request. If you are looking for a loan from a venture capitalist or other private investor then you might also want to include details of how and when you plan to pay back the loan. No matter what content you choose to include, always make sure that your letter utilises appropriate vocabulary, proper grammar and correct spelling. Avoid slang terms and contractions. Always reference your company by it's full name. Don't give anyone any reason to reject your loan request based on your cover letter.

Format of a Cover Letter for a Loan Request

Make sure you reference the date on which you are writing, and use a formal salutation ("Dear,") and closing ("Yours sincerely,"). Left align your letter and use a professional font such as Times New Roman. Print your letter on clean paper, without any embellishments like borders or images. Do not email your cover letter and application unless you have express permission to do so. Instead, deliver by hand or post.

Example of a Cover Letter for a Loan Request

Mr. Curtis Cover Letter Business Name Mailing Address

Ms. Linda Loan Officer Bank Name Mailing Address

Dear Ms. Loan Officer,

Please find enclosed all of the required documentation for a Small Business Loan from [Bank Name] as detailed by you in our appointment on 12th January.

In addition to the standard [Bank Name] application forms I have also included the Executive Summary of [Business Name]'s 2010 - 2012 business plan. In this summary you will find details of [Business Name]'s past activities, current assets, projected growth and expected financial objectives. As you will see, [Business Name] has had fantastic trading results in the past and this loan would be used to help [Business Name] expand and create even better trading figures in the future.

If you have any questions or require any additional information about this loan request please do not hesitate to contact me. I will be in touch soon to set up a further appointment to discuss this application.

I look forward to working with [Bank Name] in the future.

Yours sincerely, ____________________ Curtis Cover Letter

Enclosures (4)

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Personal Loan Request Letter (Format & Sample)

A personal loan request letter is a letter written by a loan applicant and addressed to a financial institution, introducing the applicant, and supporting their loan application. Anyone wanting to take out a personal loan should write a personal loan request letter to introduce themselves to their target banking institution. The purpose of the letter is to request a loan formally and to demonstrate that they can repay the loan amount requested.

In short, the applicant needs to use this letter to demonstrate to the bank that they are a reasonable financial risk.

How to Write a Personal Loan Request Letter

This is a professional document, so write professionally and use a formal format for your letter. Write clearly and concisely, and send supporting financial documents. These documents might include tax returns, paycheck stubs, and bank account balances. You might want to include collateral information you can use to obtain the loan, such as a car, a boat, or a house.

Tip: Your personal loan request letter is the first document the lender will see when applying for a loan. Address it to a person, not a title. Addressing the loan administrator by name can positively influence their first impression of you as a borrower. You can ask for this information at the bank, or you can look for the information on the bank’s website.

What a Lender Needs to Know

Lenders are primarily concerned with your ability to repay the amount you are requesting as a loan. However, a lender must have some other information about your loan request before they can judge your ability to repay the loan. Here is what to include in a personal loan application letter:

• The amount of the loan you are requesting
• Your name and contact information
• Your status as a borrower, such as bank accounts and income information
• Any property you might have as collateral for the loan
• The intended use of the loan funds
• The expected benefit of the use of funds
• A detailed list of enclosed documents, including your loan application

This might sound overwhelming, but it is really quite simple. For example, if you have a home in need of a renovation, you might ask for a loan of the amount needed to perform the renovation. In writing your letter, you would state the renovation as the intended use of the funds and the return on investment (ROI) you anticipate as the expected benefit the renovation will provide.

Personal Loan Request Letter Format

{your name}

{your address}

{recipient name}

{recipient title}

{financial institution name}

{financial institution address}

RE: Personal loan request for {amount}

Dear {recipient}:

The purpose of this letter is to request a personal loan in the amount of {amount}. I intend to use the funds to {intended use}. {Use this space to briefly discuss the use of the funds and the expected benefit from this use.}

Attached, please find my loan application. I have also enclosed my most recent tax return, current bank account statements, proof of my income, and a list of my current assets. These financial documents and my credit score of {number} combine to make me a strong credit risk for {financial institution name}.

I would greatly appreciate the opportunity to discuss my personal loan application with you. I can be reached at {your phone number} or {your email address}.

Thank you for your time and your consideration of my loan application.

{your signature}

Sample Personal Loan Request Letter

2004 South Perkins Street

Bowen, TX 89556

August 22, 2022

Mr. Jacob Harrison

Personal Loan Administrator

Bank of Texas

4886 West 93 Street

Bowen, TX 89558

RE: Personal loan request for $6,000

Dear Mr. Harrison:

The purpose of this letter is to request a personal loan in the amount of $6,000. I intend to use the funds to renovate my home’s outdated bathroom. I have attached the best estimate for the renovation and an estimate of the return on investment for this renovation. As you can see, the ROI expected increases my home’s value by an amount greater than the cost of the renovation.

Attached, please find my loan application. I have also enclosed my most recent tax return, current bank account statements, proof of my income, and a list of my current assets. These financial documents and my credit score of 724 combine to make me a strong credit risk for Bank of Texas.

I would greatly appreciate the opportunity to discuss my personal loan application with you. I can be reached at 987-234-5889 or [email protected] .

Personal Loan Request Letter (Word Template)

The purpose of a personal loan request letter is to support your loan application positively. Be clear about your financial circumstances and the benefits the loan can provide. This supporting information, written clearly and concisely, can assist you in getting the loan you need to accomplish your goals.

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How to Write a Loan Application Letter

Table of Contents

Sometimes, taking out a loan can become inevitable. Whether dealing with piled-up medical bills or a financial emergency, it’s common to turn to fast and convenient borrowing options. According to statistics, advances and loans accounted for more than 60% of bank assets in the European Union in 2021. 

If you wish to take out a loan, you’ll have to fill out a loan application or request letter that details what you need the money for and how you’ll use it. The best way to appeal to a lender is by using a convincing tone and showcasing a clear plan for the money. Keep reading as we look at ways you can achieve this and ensure that your loan is granted successfully. 

What is a Loan Application Letter?

A loan application letter is a typed or handwritten letter provided to your lender, helping them decide whether to approve your loan request. This letter is written when the borrower is seeking financial assistance from a lender to pay off some bills or other expenses. 

When Do You Need One?

You might require a loan application letter in the following financing situations:

• When you wish to borrow money from the SBA (Small Business Administration) since it recommends and encourages applicants to start their loan proposals with an executive summary or a loan application letter
• When a borrower opts for a loan from a conventional bank lender and has to demonstrate that their business is financially viable and experiencing growth

In some situations, you aren’t required to write a loan application letter. These include scenarios like when a borrower is seeking equipment financing and said equipment serves as collateral, when someone requests a business line of credit with business bank statements or financial statements, and when a borrower seeks a term loan online using alternative lenders who want to go over your recent bank statements. 

Essential Loan Application Elements

There are specific guidelines you need to follow when writing a loan application:

1. Header and Greeting

Whether you’re filling out a loan application letter for a personal or business loan, it’s crucial that you start with a header and greeting. Include several sentences that outline the necessary, accurate details of your loan request in the header. If you’re opting for a business loan, then you need to include the following details:

• Company name
• Company phone number
• Company address
• Loan agent or lender’s name and title
• Loan agent or lender’s contact details
• A subject line stating the desired loan amount

Follow this by incorporating a greeting right below the header so that you introduce your application with a friendly tone. 

2. Loan Request Summary

You will have to provide your lender or loan agent with an overview of your loan request in this section. Ensure this section is concise, detailing only crucial information that’ll enable the lender to reach the letter’s body quickly. Entrepreneurs applying for a business loan should state why they are trustworthy borrowers, basic business details, the ideal loan amount, and the use of the loan. 

3. Basic Business Details

It would be best if you started by making a clear loan request which includes the amount you wish to borrow. When you write a few sentences about the workings of your business, they should include the following information:

• The legal business name 
• Any DBA used by the organization
• The amount of time the business has been operating
• The business structure
• Number of employees
• An overview of what the company does
• Profits and annual revenue, if applicable

Once this is done, you can move on to the next step, which is explaining why you need a loan. Don’t also forget to outline how you plan to repay the owed amount if the lender grants the loan.

4. Loan Usage

Every lender’s goal is to minimize risk as much as possible, so don’t be surprised if they carefully scrutinize your application before deciding whether to accept or disapprove it. They will assess whether you can pay back the loan entirely on time. Make a solid outline of how you intend to use the loan and why granting you the funds is a wise investment. It’s essential to inform the lender that you have clear goals you will accomplish if the loan application is approved. 

5. Proof of How You’ll Pay Back the Loan

In order to show your company’s financial health, you’ll need to use figures from the latest balance sheet or income statement. These records are essential because they demonstrate that you can repay the loan. 

Additionally, you must include any additional business finances to prove you’re a low-risk investment. State down any existing debt and a schedule detailing how you’ll pay it back if you owe someone else money. Perhaps, you’re a new business, but profits are stable. In that case, ensure you mention this, as it proves your ability to repay the loan. 

Once you achieve this, you can add a particular cash flow prediction to give the lender an idea of your payback plan, including the principal and interest amount. 

6. Give Accurate Information

There’s no doubt that lending money is a risky investment. You can make your lender’s life easier by providing factual and correct details to ensure both parties agree with the terms of the deal. For example, include your accurate credit history. If you are dishonest during the loan application process, you will be considered a fraud, and there will be repercussions for your actions. 

Tips for Writing a Loan Application Letter

• Before sending a loan letter request, check your business and personal credit scores and whether you need to take specific steps to improve them
• Provide transparent, genuine, and concise explanations
• Ensure all information is factual and relevant
• Keep all your financial statements ready, such as business balance sheets, cash flow statements, PSL statements, etc
• Submit every relevant credential with your loan application request letter
• Include the date, time, method, and manner you’ll use to make your payment
• Avoid writing a letter that is unnecessarily wordy and long
• Follow the rules available online on writing formal letters, so you don’t use an informal tone while assembling your loan application letter
• Whether including your business’s current assets, liabilities, or financial health, don’t jot down false information that can get you into legal trouble.

Loan Terms and Penalties

If you fail to pay your loan on time, cancellation fees or penalties may apply that depend on the number of days you’re overdue on the payment. For example, if you’ve looked into how to get a title loan with a lien , you know that your car will be used as collateral. In case you default on payment or provide false information, you are likely to lose ownership of the vehicle.

You should go through the loan terms and conditions as this will enable you to determine how many days your payments can be delayed, how much penalties are for late payments, and the amount you’ll be charged if you cancel your loan. Choosing a loan provider that offers the lowest and most amenable terms is recommended. 

Whatever reason you have for acquiring a loan, writing a solid loan application letter will improve your chances of obtaining the financial help you need. This application letter should be composed in a polite, convincing tone and include accurate information. You can do thorough research to pick a lender whose provided options align with your requirements. Consider beforehand how much money you need and apply for the relevant loan. 

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How to Write a Loan Request Letter to Get Your Small Business Funded

TABLE OF CONTENTS

If you want to get business financing from your bank or the Small Business Administration (SBA), you’ll need to know how to write a loan request letter. 

Indeed, your bank’s underwriter will look for your business loan request letter when reviewing your application. The SBA expects you to have one, too.

A well-written letter requesting a loan can make the difference between having your application approved and it getting turned down.

Here’s what you need to know about how to write a loan letter, including when you need one, what you’ll need before writing one, what format you should use, examples to review and a loan request letter template to write your own.

What Is a Business Loan Request Letter?

A business loan request letter is correspondence a borrower writes and submits to a bank as part of the loan-application process. 

Business loan request letters include the following:

• Loan amount 
• Planned use of funds
• Explanation of why you should be funded 
• Details about how you plan to repay your loan 

When You Need a Loan Request Letter

There are 2 main financing situations when loan request letters are called for:

• When you’re requesting a loan from a conventional bank lender and you want to demonstrate that your business is growing and financially viable
• When you’re applying for a loan from the SBA , which recommends you begin your loan proposal with a cover letter or executive summary

If either situation applies to you, you should know how to write a loan letter.

There are situations when you don’t necessarily need a loan letter, including:

• You’re requesting a term loan online from an alternative lender, who may only require recent bank statements  
• You’re seeking equipment financing , in which case the equipment itself will serve as collateral
• You’re requesting a business line of credit , which only may require recent financial statements or business bank statements

Prerequisites for Writing Loan Request Letters

While a loan request letter may be needed for bank and SBA loans , it won’t be enough for approval unless it’s supported by a sound credit situation and solid financial planning. For your request to be persuasive to lenders, you should do 2 things before preparing your business request letter and loan application package:

• Check your personal and business credit scores and take any steps you can to improve them
• Prepare the business financial statements you’ll need for your loan package

Your personal and business credit scores and business financial statements will help lenders assess whether you’re a good financial risk and will lend weight to your loan request letter. Business financials should be submitted with your loan application along with your cover letter. 

Essential financial statements you will need include:

• Profit-and-loss statement (also called an income statement)
• Balance statement
• Cash-flow statement

Business Loan Request Letter Format

When you write your loan request letter, it’s recommended to keep it to 1 page while including the following key elements:

Heading and Greeting

The very top of your letter for a loan application should include contact information, a subject line as a header and a greeting as follows:

• Your name and contact information
• The date of your letter
• The name, title and contact information of your loan agent
• A subject line stating that you’re writing about a loan and specifying the dollar amount you’re requesting

Summary of Your Small Business Loan Request Letter

Start by briefly stating the purpose of your letter and the amount you’re asking to borrow.

Basic Information About Your Business

This should include:

• Your company’s legal name
• Your company’s legal structure ( sole proprietorship , partnership, limited liability company, S corporation, etc.)
• A brief description of what your business does
• How many years you’ve been in business
• How many people you employ
• Your annual revenue and profit

Explanation of the Purpose of Your Loan

Tell your lender how you plan to use the loan. Be as specific as possible, citing numbers to quantify your goals. For instance, instead of saying you plan to use the loan for advertising, specify what types of advertising you’ll use, how much each will cost and the percentage of new customers or increased revenue you hope to gain.

Summarize Your Ability to Repay the Loan

Touch on your credit history and highlight key data from your financial statements that reflect your ability to repay your loan, including:

• Summaries of recent profit-and-loss or balance statements demonstrating that your business is financially healthy and growing
• Schedules for repaying any other business debts you already owe
• Cash-flow projections that indicate when you’ll be able to budget repayments for your loan’s principal and interest

Concluding Elements

The end of your letter should include:

• A paragraph referring to your attached financial statements
• A concluding paragraph asking the loan officer to review your package and expressing your anticipation of speaking with them soon
• Your signature
• A list of enclosures, including your financial statements and any other documents that are required for your loan application. You may also need to provide your business partners’ financials, including for SBA-backed loans .

Don’t want to write a loan request letter? We’ve got you covered.

Loan request letter templates and samples.

Here are loan request letter samples and templates you can use to create your own letter. 

Sample Request Letter for a Working Capital Loan to Support Expansion

ABC Builders

123 Park Lane

Miami, FL 33145

Jan. 1, 2020

Senior Loan Officer

987 Spring Road

Philadelphia, PA 19115 

Re: Small business loan request for $100,000

To Mr. Doe,

ABC Builders is a successful business that is well established in the building and renovation industry. We began operation with 3 employees in January 2010 as a small company offering renovation services to local businesses and homeowners. We now have 20 employees. We advertise on our website, ABCBuilders.com, and market on social media channels as well as at home building expos. 

Last year, our annual sales totaled $3.5 million. In the first year of business, we earned a net profit of $1 million. Additionally, we have maintained a steady balance in the past 10 years.

Because of increasing interest from prospective clients in neighboring cities, we have decided to open a second location. The loan we are requesting is for this additional location, which we anticipate will increase revenue by $300,000 in the first quarter following opening.

Startup costs can be costly, and we require funding to purchase supplies and equipment. However, we anticipate strong sales for the new branch and have immediate work opportunities, which will contribute to our loan repayments. 

The loan of $100,000 we are requesting will provide us with the funding we need to help successfully open our second location. I have attached the contracts we have in the new location, pending equipment availability and ability to complete the project as well as our business plan with a breakdown of costs and detailed market analysis. 

Thank you for reviewing this letter and the accompanying financial documents. I look forward to hearing from you at your convenience.

Jack Smith [signature]

Enclosures: Business plan, profit-and-loss statement, balance statement, cash-flow statement 

Sample Loan Request Letter to Fund the Salary of a New Hire

Chief Executive Officer

Dear Mr. Smith:

I am writing this letter to request a small business loan in the amount of $100,000 for the purpose of hiring additional staff. 

My business, ABC, Inc., is a growing company that serves clients in the food-service industry. You can follow our success online at www.ABCInc.com.

ABC, a corporation, began operation in January 2016 with 5 workers and 1 location. We have grown consistently in the past 4 years. We now employ 15 workers and have expanded to 2 locations.

Last year, our annual sales revenue was $2.8 million and we generated a net profit of $975,000. We have maintained our cash flow consistently over the past 2 years and have generated a net profit each year we’ve been in business.

To promote our continued growth, we plan to hire a full-time manager this year to oversee our business operations. We are requesting working capital funding to continue our expansion efforts and cover the cost of the new manager’s salary and benefits. In addition, in an effort to retain top talent, we plan to offer an enticing relocation package and signing bonus. This new hire will streamline operations and lead to efficiencies totaling $150,000. 

We would like to pursue this endeavor in the second quarter of 2020, but this venture will require more funding than our current cash flow can sustain. Although we lack a lump sum large enough to cover this additional expense, our budget can allow for monthly payments over time given sufficient financing.

A loan in the amount of $100,000 will enable us to acquire the right talent to facilitate our expansion. Our projections, which are enclosed, indicate that increased efficiency and sales will generate enough increased revenue to repay this loan by 2023.

Attached, please find our business plan and our most recent financial statements for your review. Based on these strong financials and our business credit score of 90, we are confident that you will find us a safe credit risk.

Thank you for reviewing this request letter and the accompanying financial documents. I look forward to hearing from you at your convenience.

Jane Doe [signature]

Jane Doe, Chief Executive

Enclosures: Business plan , profit-and-loss statement, balance statement, cash-flow statement

Additionally, you can use the following example to create your own term loan request letter format.

Loan Request Letter Template

[Your name]

[Your title]

[Your business name]

[Your business address]

[Your city], [Your state] [Your ZIP code]

[Loan officer’s name]

[Loan officer’s title]

[Loan officer’s company]

[Loan officer’s address]

[Loan officer’s city], [Loan officer’s state] [Loan officer’s ZIP code]

Re: Small business loan request for $[amount]

Dear [loan officer’s name]:

I am writing this letter to request a small business loan in the amount of $[amount] for the purpose of [summarize the purpose of the loan here]. My business, [your business name], is a growing company that serves clients in the [type of business] industry. You can see our success online at [list your website and any social media profiles you want to showcase].

[Your business name], a [business legal structure], began operation in [date you began operation] with [number] workers [if applicable], and has grown consistently over the past [number] years. We now employ [number] workers [if applicable].

Last year, our annual sales revenue was $[amount], with a net profit of $[amount]. [If you are not profitable, you can omit mention of net profit here.] We have maintained our cash flow consistently over the past [number] years, and have generated an annual net profit each year we’ve been in business [if applicable].

[Explain the reason for the loan request here. For example: To promote our continued growth, we plan to hire a full-time administrative assistant and a sales representative this year. We are requesting funding to cover the cost of their salaries and benefits. (Substitute appropriate language applicable to your business plan.)]

We would like to pursue this next quarter [specify time frame], but this will require more funding than our current cash flow can sustain. Although we lack a lump sum large enough to cover this additional expense, our budget can easily cover monthly payments over time given sufficient financing. A loan in the amount of $[amount] will enable us to cover labor costs for our two new employees. Our projections indicate that increased efficiency and sales will generate enough increased revenue to repay this amount by [date].

Attached, please find our business plan and our most recent financial statements for your review. Based on these strong financials and our business credit score of [score], we are confident that you will find us a safe credit risk.

[Your signature]

[Your name printed]

Enclosures: Business plan, profit-and-loss statement, balance statement, cash-flow statement [list other documents included.]

You also can find loan request letter templates and sample letters online.

Here are a few websites offering examples of business loan application letters you can refer to when writing your own loan request letter:

• If you’re wondering how to write a letter to a bank manager for a loan, check out RequestLetters.com .
• LiveCareer offers a loan application sample letter as well.
• Refer to these loan request samples , too. 

Mastering the Loan Request Letter Format

A loan request letter is essential if you’re applying for a loan from a conventional lender or the SBA. Add weight to your request by optimizing your personal and business credit scores and including your business financial statements. 

Follow the proper format when writing your letter, including a header and greeting, a summary of your request, basic information about your business, an explanation of the purpose of your loan, a summary of your ability to repay your loan and, finally, appropriate concluding elements. Use a template to make writing your loan request letter a little easier.

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Sample Letters

Writing a Bank Loan Request Letter That Works

In this guide, I’ll share my insights and provide three proven templates to help you draft your own successful bank loan request letter.

Key Takeaways:

• Essential components of a bank loan request letter
• Tips from personal experience to enhance your letter
• Three unique templates for different scenarios
• Real-life examples to illustrate successful letters

Understanding the Basics

A bank loan request letter is your formal pitch to the bank, explaining why you need the loan and how you plan to repay it. It should be clear, concise, and convincing. Here are the essential components to include:

• Introduction : Introduce yourself and state the purpose of your letter.
• Loan Amount and Purpose : Specify the amount of money you need and what you plan to use it for.
• Financial Information : Provide details about your financial status, including income, expenses, and any other relevant financial information.
• Repayment Plan : Outline how you plan to repay the loan, including the repayment schedule.
• Closing Statement : Summarize your request and express your hope for a favorable response.

Tips from Personal Experience

• Be Honest and Transparent : Honesty goes a long way in building trust with the bank. Be upfront about your financial situation and the purpose of the loan.
• Provide Supporting Documents : Attach any necessary documents that support your request, such as financial statements, business plans, or proof of income.
• Tailor Your Letter : Customize your letter to match the specific requirements of the bank and the type of loan you are requesting.
• Professional Tone : Maintain a formal and professional tone throughout the letter.

Template 1: Personal Loan Request

[your name].

[Your Address] [City, State, ZIP Code] [Email Address] [Phone Number] [Date]

[Bank’s Name]

[Branch Address] [City, State, ZIP Code]

Subject: Personal Loan Request

Dear [Bank Manager’s Name],

I am writing to request a personal loan of [amount] to [purpose of the loan]. I have been a loyal customer of your bank for [number] years and have maintained a good account standing.

I am currently employed at [your employer] as a [your position] with a steady monthly income of [amount]. I have attached my recent pay slips and bank statements for your reference.

I plan to repay the loan over a period of [repayment period], with monthly installments of [amount]. I am confident in my ability to meet this obligation and would appreciate the opportunity to discuss this further.

Thank you for considering my request. I look forward to your positive response.

Sincerely, [Your Name]

Real-Life Example

A few years ago, I needed a personal loan to cover unexpected medical expenses. I followed the structure above and ensured all my financial documents were in order. My loan was approved within a week, and the bank manager appreciated the clarity and completeness of my application.

Template 2: Business Loan Request

[Your Business Name] [Your Business Address] [City, State, ZIP Code] [Email Address] [Phone Number] [Date]

Subject: Business Loan Request

I am writing to request a business loan of [amount] to expand my business operations. My business, [your business name], has been operational for [number] years and has shown consistent growth.

We have recently secured a large contract with [client’s name], which requires an upfront investment in equipment and staff. I have attached our business plan, financial statements, and the contract details for your review.

I propose to repay the loan over [repayment period] with monthly installments of [amount]. Based on our current revenue and projected growth, we are confident in our ability to meet this commitment.

Thank you for considering our request. We look forward to your positive response.

Template 3: Home Loan Request

Subject: Home Loan Request

I am writing to request a home loan of [amount] to purchase a property located at [property address]. After thorough research, I have found this property to be ideal for my family’s needs and within my financial capabilities.

I am currently employed at [your employer] as a [your position] with a stable income of [amount] per month. I have attached my employment letter, pay slips, and bank statements for your review.

I propose to repay the loan over [repayment period] with monthly installments of [amount]. I have also enclosed the property valuation and purchase agreement for your reference.

Thank you for considering my loan request. I look forward to your positive response and am available to discuss any further details you may require.

Final Thoughts

Writing a bank loan request letter requires careful thought and attention to detail. By following the templates and tips provided, you can create a compelling request that highlights your credibility and increases your chances of approval. Remember to be honest, provide supporting documents, and maintain a professional tone throughout your letter.

Home > Finance > Loans

How to Properly Write a Business Loan Request

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Have to submit a business loan request letter as part of your loan application? Not sure how to get started?

We don’t blame you. These kinds of letters aren’t as common as they used to be. While online lenders don’t usually ask for small-business loan requests, some traditional banks and credit unions still do. And if you apply for an SBA business loan (a loan backed by the US Small Business Administration), you’ll need a small-business loan request as part of your loan application package.

No matter which lender you’re applying with, this guide will help you write a strong business loan request letter―and to get the business loan you need.

How to write a business loan request letter

• Start with the easy stuff
• Write a brief summary
• Add information about your business
• Explain your financing needs
• Discuss your repayment plan
• Close the letter

1. Start with the easy stuff

Writing a loan request can feel overwhelming. After all, it’s not an everyday part of being a small-business owner. What do you say when applying for a bank loan? How do you write a business proposal for your loan application? What’s your lender even looking for in a business loan request letter?

That’s why we suggest starting your request writing process with the easy bits: formatting.

You’ll want to begin your business loan request with some pretty standardized formatting that includes your contact information, the date, your lender’s contact information, a subject line, and a greeting.

Typically, you’ll want to format the beginning of your small-business loan request roughly like this:

First and last name

Business’s name

Business’s phone number

Business’s address (this one is optional)

Lender name (or loan agent’s name and title, if you have one)

Contact information for your lender or loan agent

Subject line

Obviously you can simply plug in the relevant information for most of this. Easy peasy, right?

You’ll really only have to come up with your own subject line and greeting. But don’t overthink it. Something like this will work just fine for your subject line:

• Re: [Your business’s name] business loan request for [loan amount]

Likewise, keep your greeting simple. “Dear [lender]” or “Dear [loan agent]” will do quite nicely.

Got all that? Then you’re ready to get into the actual loan request.

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2. Write a brief summary

Before you dive into the meat of your loan request, you should give a brief summary of your letter. Just write a short paragraph that says why you’re writing and what you want.

So you’ll probably want to include the following details:

• Business name
• Business industry
• Desired loan amount
• What you’ll use the loan for

No need to get fancy with this. You’re trying to condense the most important information into one or two sentences.

For example, your summary might look something like this:

• I’m writing to request a [loan amount] loan for my small business in the [industry name] industry, [business name]. With this loan, [business name] would [describe your intended business loan use].

As you can see, you don’t need much detail here. You’re just giving the reader a quick overview of what’s to come.

And now that you’ve given them that preview, it’s time to get more in depth.

Remember, your lender isn’t here to grade your writing. Try to use good spelling, grammar, and punctuation―but don’t stress about crafting beautiful sentences.

3. Add information about your business

Your next section should add more detail about your business. You’ll want to include information like this:

• Business’s legal name (if different than name used)
• Business’s legal structure (LLC, partnership, S corp, sole proprietorship, etc.)
• Business’s purpose
• Business’s age (or date it began operating)
• Annual revenue
• Annual profit (if applicable)
• Number of employees

Now, keep in mind that you’re not trying to give your reader an encyclopedic history of your business. Instead, you’re trying to show that you have a well-established business―one that’s solid enough to deserve a business loan. So focus on relevant details that show your business’s maturity.

You can keep this section as short as a few sentences or as long as a few (brief) paragraphs. Just make sure you leave plenty of room for the next two sections.

4. Explain your financing needs

After discussing your business, it’s time to explain why you need a bank loan.

That means you’ll want to offer some details about how you plan to use your business financing. For example, you can talk about the employees you plan to hire, the building you want to expand, or whatever else you intend to do with your term loan .

Take note, though, that you also need to explain why your loan request makes sense. Because your lender doesn’t really care that you want a loan―it cares whether or not it makes sense to lend to you. You need to convince your lender that you have a good plan for your loan―one that will make it easy to repay the money you borrow.

Try to answer questions like these as you write this section:

• Why should your lender want to approve your loan application?
• What happens to your business if you get your small-business loan?
• What kind of growth will your business loan allow for?

Dig into your business plan and projections to find some good stats. Explain how hiring those additional employees will increase your revenue by a certain percentage or dollar amount. Break down how opening that add-on to your restaurant will allow you to seat a number of additional customers, and how much revenue you expect that to bring in.

The more specific you can get, the better. Because again, you’re trying to convince your lender that you’re borrowing as part of a thoughtful business plan ―not just because you want some cash.

And take your time with this part. In most cases, this section and the next one will form the meat of your business loan request letter. 

As a rule, you should keep your business loan request letter to one page.

5. Discuss your repayment plan

By this point, your lender should understand what your business does and why a loan would help it grow. Now you need to prove to your lender that you can repay your small-business loan.

This doesn’t mean you have to show precise calculations breaking down your desired interest rate and monthly payment. (After all, your bank probably hasn’t even committed to a specific interest rate yet.)

Instead, talk about things like your business’s past finances, other existing debts, and any projections can you offer.

So if you have a profitable business, point that out, and discuss how that will free up cash flow to repay your loan. Offer summaries of profit-and-loss statements that show your business has been growing. Tell your lender how you’ll pay off that existing loan within a few months, so they don’t need to worry about it interfering with repayment of your new term loan.

Put simply, this is your chance to convince your lender of your creditworthiness. Especially if you have a slightly low credit score or some other concern, you want to use this section to show that you will absolutely repay your loan.

6. Close the letter

Finally, you can add a few finishing touches.

Usually you should close with a short paragraph or two that refers the reader to any attached documents (like financial statements) and asks them to review your loan application.

You may also want to include a sentence expressing willingness to answer any questions―or just saying you’re looking forward to hearing back.

Then end things with your signature, list any enclosed documents, and you’re done!

Well, sort of.

At this point, we strongly recommend you print off your business loan request letter and read it―out loud, if possible. This will help you catch any errors. Because no, your lender isn’t a writing teacher, but you still want to make a good impression.

Plus, if you make typos on something like your business name or desired loan amount, that inaccuracy could lead to confusion from your lender―slowing down your loan approval process.

Once you’ve proofread your loan request letter, you’re ready to submit it to your lender. With any luck, your thoughtful letter will help convince your lender to give you that loan you want.

Loan proposal letter template

So how do all those steps look when you put them together? Something like this:

            First and last name

            Business’s name

            Business’s phone number

            Business’s address (this one is optional)

            Date

            Lender name (or loan agent’s name and title, if you have one)

            Contact information for your lender or loan agent

            Subject line

            Greeting

This first paragraph should summarize the rest of your letter. Keep it to just a couple sentences.

The next one to three paragraphs add more detail about your business. Include facts about its age, revenue, profit, employees, and other relevant information.

Then explain why you need financing and how you’ll use it to grow your business. This section can be a little longer (but remember your whole letter  should fit on one page).

Next, talk about how your business will repay your loan. You may want to mention how financial documents show your business’s financial health, for example.

Finally, close with a short paragraph or two that list any enclosed documents and invite the lender to consider your loan application.

Printed name

List of enclosed financial documents

That’s not so hard, is it? With this basic business loan request letter template, you can easily write your own personalized business loan proposal.

The takeaway

So there you have it―that’s how to properly write a business loan request.

Get your formatting right, include a short summary, talk about your business, explain your loan needs, prove you can repay your loan, and close things off. (And don’t forget to proofread.)

We believe in you. You can write this thing.

And good luck getting your loan application approved!

Don’t just tell your lender you can repay your business loan―make sure you can with our business loan calculator .

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• 7 Tips on How to Write a Business Loan Request Letter
• Learning Center
• Small Business Loans

One of the toughest aspects of applying for a traditional bank or small business loan is the numerous hoops borrowers generally must jump through to qualify. From gathering all the proper documentation to ensuring your business has the necessary prerequisites to qualify, applying for a loan can be an arduous process. 

The primary purpose of the lengthy application is to help the lender determine whether you’ll actually be able to repay the loan. While all the information you provide helps make your case, a well-written loan request may mean the difference between qualification and rejection. Below detailed tips on how to write a business loan request letter that presents your company in the best light possible. 

What is a business loan request letter? 

A business loan request letter is a written document that you provide with your loan application to help improve your chances of getting approved. Small business owners use it to report the amount of money they’d like to borrow. They also use it to detail how they’ll use the funds for their business and how they’ll repay the loan over time. All that information arrives alongside an explanation of why the bank should fund the business.

How to write a small business loan request letter 

Your loan request letter is often the first thing your lender will look at after receiving your small business loan application. It’s how the lender will judge whether you’re eligible for a loan, so writing it correctly is highly important. 

While there are many factors to consider when writing a business loan request letter, one thing to keep in mind is its length. Lenders typically use your letter to make snap judgments on whether to continue the review process. That generally means a longer letter may be one reason as to why your application might be rejected . The ideal loan request is usually a page long but packed with all the necessary details, as listed below. 

1. Start with a header and a greeting

The top of your letter is reserved for basic identifying information and a subject line that includes your requested loan amount. Most loan request headers include personal details such as: 

• Your first and last name
• The name of your business
• Your business’s address
• Your business’s phone number
• The name of the lender or loan officer presiding over your case
• That lender or loan officer’s contact information
• A subject line that states you’re writing to request a loan and the amount you’re trying to borrow 

Keeping a cordial tone throughout the letter can help leave a good impression on the lender. So beneath all the necessary information in the header, you should write a kind but formal greeting.  

2. Write a brief summary

Start the body of your letter with a brief summary of why you’re writing it and the amount of money you’d like to borrow. Doing so typically means expanding on the information you provide in the header. Accordingly, you’ll want to include only a basic overview of your business while reiterating the amount you’d like to borrow and why. 

While there’s more information here than in the header, you should still try and include only the most essential details. The summary section is meant to convince the loan agent to keep evaluating your application, so brevity is key.

3. Provide a basic overview of your business

There’s specific information that you should include as a part of the overview of your business, such as the following.

• Your business’s legal name and any fictitious names for which you have a DBA
• How your business is structured: Is it an S corporation or a partnership , or is it something else?
• A description of the products or services your business provides 
• How long your business has been operating
• Your current number of employees
• Your business’s annual revenue (and profits, if applicable)

As with the sections above, keep this information concise so you don’t accidentally dissuade the loan agent from continuing to read. Additionally, make sure to cover the most unique aspects of your business so you can stand out among other applicants in your industry.

4. Add info on any partners, if applicable

It’s not just your business’s success that’s being evaluated. Lenders also put your personal finances and leadership abilities under the microscope to determine the likelihood of your business succeeding in the long term. So if you’re just one of many people who own your business, then it stands to reason that lenders will assess any co-owners as well. Add their info to the header alongside yours and include their finances in any revenue or debt calculations .

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5. explain how you plan to use your business loan funds.

While you may have briefly mentioned why you want the loan in previous sections, it’s here that you’ll go into detail. Explain how you’ll use the funds in as much detail as possible while remaining clear and concise. This section should demonstrate that you know what your business needs to increase its profitability. And that you have a plan in place to get there. 

Remember that the lender's main goal during this process is to ascertain whether you’ll actually repay the loan. It doesn’t necessarily matter how you use the money as long as you back up your actions with a solid business plan. 

To that end, try to be specific when stating the purpose of your new funds. A financial institution won’t approve a loan that simply lists wanting more working capital as the reason for their loan request. Some more acceptable examples of reasons for wanting additional funds include, but aren’t limited to, the below.

• Purchasing additional commercial property
• Funding more expansive marketing campaigns
• Buying out shareholders
• Hiring more experienced employees
• Purchasing newer equipment
• Moving your business operations to a new location

Note that this isn’t an exhaustive list of acceptable reasons to seek a small business loan. If you adequately explain any way that the funds will help your business grow over time, your application generally has a better chance of qualifying . 

6. Demonstrate that you can repay the loan

Staying in line with the lender's desire to minimize financial risk, you must demonstrate your business’ ability to repay the loan. Essentially, this means proving that your company is financially healthy enough to make long-term monthly payments on the principal loan amount plus interest. 

The financial information you provide to fill out the rest of the loan application will go a long way here, but further detail is typically necessary. For example, you could include a cash flow statement to show that your business is profitable. Or you could highlight your credit history to show that you’ve reliably paid current and past debts. 

7. Add your concluding elements

Make sure to keep a cordial tone once you’ve reached the end of the business loan request letter as you include the following information.

• A reference to your attached financial statements (usually about a paragraph long)
• A final paragraph that formally requests that the lender review your application. You should also indicate that you look forward to speaking with them in the near future. 
• A signature
• A list of all the documents you’ve included to complete your loan application

Examples of a small business loan request letter

Below are two examples of a small business loan request letter that you may use as templates.

Example small business loan request letter #1

Your First and Last Name [And the name of any company co-owners] Your Business’s address City, State, Zip Code

Name of the Loan Agent Loan Agent’s Title Name of the Agent’s Financial Institution Financial Institution’s address City, State, Zip Code

Subject: Small business loan request for [Amount]

Dear [Lender/Loan Agent’s Name],

I am writing this letter to request a small business loan of [Amount] to [Purpose of the loan].  My business, [Name of Business], is part of the [Type] industry and has proven to be a successful venture within its market. 

Opening its doors in [Date] with [Number] of employees, [Business Name] has shown reliable, remarkable financial growth over the past [Number] of years. Structured as a [Legal structure of your business], [Business name] now employs [Number] individuals, with our annual sales revenue reaching [Number] last year. In addition, we’ve reached net profits of [Number, Include if your business is profitable], maintaining strong economic growth in the [Number] years since opening. 

[Use this section to explain the reason for your loan request, for example]: We’ve observed an increasing number of customers coming into our storefront coupled with increased demand for [Your business’s product or service]. We wish to further capitalize on our success by expanding our current floor space, allowing more customers to purchase our [Product or service] at once.  As a result, we request funding to afford [Name what you need] and continue growing our business with [Summary of your business plan]. 

The potential financial growth of our business is immediate, allowing us to fit repayments plus interest into our monthly budget easily. But we cannot currently produce a lump sum large enough to afford [Name what you need] in a reasonable timeframe. A loan in the amount of [Number] enables us to purchase [Name what you need] to capitalize on this growth opportunity and begin generating new revenue as quickly as possible. 

We feel that [Business name] is of minimal financial risk to your bank due to our strong credit score of [Number] and positive finances. Attached to this application are our annual profit and loss statement and our most recent cash flow statement to help corroborate our excellent economic position. 

Please take a moment to review this request letter and the accompanying financial documents. If you feel our company is a good match for your bank, we would love to hear from you.

Your Signature Your Printed Name

List of Enclosures: Business plan, cash flow statement, and P&L statement [plus any other documents that are part of the loan application]

Example small business loan request letter #2

Name of the Loan Agent Name of the Agent’s Financial Institution Financial Institution’s address City, State, Zip Code

Dear [Lender/Loan Agent’s name],

This letter is meant to request a loan of [Amount] for the express purpose of growing my business, [Business name]. It’s a [Type of business] venture that’s proven itself a successful provider of [Main product or service] since we opened our doors in [Date]. As an established name within our industry, and with a continually growing customer base, we would like additional funding to capitalize on our success by expanding our operation over the next [Time frame].

[Business name] is a [State your type of business entity ] catering towards [Type of clientele]. When we first opened our doors, we employed [Number] people, and in the [Number of years] since, that number has swelled to [Current number of employees]. Furthermore, our management team comprises [Describe each partner and co-owner] who ably [Detail each company leader's responsibilities] while managing employees. 

With our current business strategies and team makeup, we’ve reached an annual sales revenue of [Number] and a net profit of [Number – only include if your business is profitable]. We plan to capitalize on our successes with new product initiatives that capture a wider range of clientele within our target market and any overlapping industries.

According to our business plan, any funding we receive would go towards [Explain what your company will use the money for along with any secondary goals]. We believe that our business will present minimal financial risk to your bank, with our credit history demonstrating our penchant for repaying debts on time. Additionally, after carefully assembling [Business name]’s most recent cash flow statement, we believe that our current revenue can easily cover an extra monthly fee plus interest.  

In addition, our overhead is very flexible due to the operation of our business accommodating contract and freelance employees, lessening financial strain. This allows us to reliably remain on top of our debts even during tough economic times or if the funding provides fewer profits than anticipated.

We would like to take advantage of this growth opportunity as soon as possible and would appreciate it if you could take the time to review our request letter. Enclosed with the application are several financial documents that help corroborate [Business name]’s continued economic health. We’re more than happy to provide any other information you might need to decide on our loan.

When do you need a business loan request letter?

Generally, business loan request letters are only necessary when you apply for the below two types of loans.

• Conventional bank term loans. Applying for a bank term loan requires you to meet that lender's particular requirements for eligibility. A loan letter is often one of those requirements. Banks are notoriously risk-averse, and your letter may help to show them that your business is financially stable enough to repay the loan. 
• SBA loans. Applying for an SBA loan requires you to meet prerequisites that are just as strict as for conventional bank loans, if not more so. Most SBA loan guidelines recommend including a loan request or similar cover letter-like document to support the financial information in your application.

While the above loans tend to require a loan request letter, other business financing options typically don’t. Such options include:

• Loans from an alternative lender. These loans’ qualification criteria are often less strict than with traditional financial institutions. Some alternative lenders may only request your bank statements when you apply. 
• Equipment financing. Typically, with equipment financing, there’s less of a need to prove that your business is profitable. That’s because the equipment you purchase serves as collateral for the loan. If you can’t repay the loan, the lender may easily recoup their losses.
• Business lines of credit. While the eligibility criteria for a business line of credit are similar to traditional banks in some respects, it doesn’t require as much documentation. Generally, getting one will only require your most recent bank or financial statement, not a business loan request letter.

Let SmartBiz® make the loan application process easier

While business loan request letters aren’t always required, they can be time-consuming when they are necessary. And if you’re applying for many loans, you might not have the time to write a loan request for every one. While writing from a template could work, knowing whether you qualify for a loan before you enter the bank may save you even more time. That’s where SmartBiz comes in handy. SmartBiz displays lenders in your area and compares their loan plans with your finances. Check now which loans you prequalify for * before you’ve even picked up an application.

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The SmartBiz® Small Business Blog and other related communications from SmartBiz Loans® are intended to provide general information on relevant topics for managing small businesses. Be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed. Please consult legal and financial processionals for further information.

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• Business Loans
• Posted on December 12, 2022
• Kortney Murray

A business loan application process often requires numerous documents, one of which is a request letter. This letter is a significant part of your application as it is written to request financial assistance from the financial institution.

In most loan application cases, the success of your application process hinges on your ability to craft a convincing and professional business loan request letter. However, to do this, you need to know what the letter entails, the necessary information to include, and, of course, how to write one. 

To help you with your application process, below we have compiled everything you need to know about writing a request letter for a business loan.

What Is A Business Loan Request Letter?

During your loan application process, whether you are getting a business loan for your beauty salon or trucking company, your lender or financial institution will request information from you. This information is to help the lender or institution trust you enough to know that you will be able to pay back their loan.

Many times, the request for this information comes in the form of a business loan request letter. A request letter is a formal letter or a document that is written to request anything from an official. It can be seen as a way of asking for a favor from officials.

In this case, a business loan request letter is a letter to the bank or lending institution that supports your business loan request. During the loan request review process, the bank underwriter will pay attention to the content of your business loan request letter to see if you deserve to get your loan approved.

In essence, your loan request letter is the difference between your loan being approved or refused. A loan request letter usually commits elements such as the loan amount requested, detailed planned use of money if disbursed, reasons why you think you should receive the funds, and a detailed description of how you plan to repay the loan.

The loan request letter is usually requested when asking for financial help in the form of a loan. This can be when you’re applying for a loan from a conventional financial institution or bank lender, or when you’re requesting a loan from the SBA ( Small Business Administration ).

In both cases, you are trying to demonstrate to the lender that your business can repay the borrowed amount, and you have a plan for using the loan when disbursed. Although loan request letters are usually a part of loan application processes, they do not necessarily need to be a part of every loan application process.

Some situations require loan letters, and some can do without them. Some situations that do not require loan request letters are:

• Situations where you require a loan from specific lenders whose only concerns are your bank statement
• Situations where you request a business line of credit and the only requirements are recent business financial statements
• Situations where you request equipment financing and the equipment will be the collateral you need.

Regardless, writing a request letter for a business loan is an essential step to securing your loan. However, simply writing a letter is not enough. It is crucial to write an excellently detailed loan request letter that passes your message across quickly to the money lender.

What You Need To Know About Writing A Loan Request Letter

Many elements go into writing a loan request letter. These request letters are a form of well-documented proposal that accompanies other loan application documents, which is why they should convey specific information. When writing a loan request letter, your letter must have specific information. This information includes: 

1. Basic Business Information

Money lenders and financial institutions do not give out loans to businesses or individuals who walk up their doorsteps. They do not accept and disburse loans without knowing who the borrower is. A detailed business loan request letter should begin with a proper introduction that communicates the borrower’s basic personal and business details.

It is a great way to not only break the ice but also get the lender to be familiar with you and know you’re genuine. The basic business information should include the following:

• Your address
• Your business name
• Your business address
• Name of the money lender or loan agent
• Contact information of the loan agent
• Requested loan amount
• Current business project
• Current annual revenue
• Turnover of the previous financial year
• Current number of employees

These details tell the institution all they need to know about you, your financial needs, and your business. Needless to say, all information given should be legal and up-to-date.

2. Purpose Of The Loan

What is the loan for? How does the lender know you will use the loan for the right things? After offering the basic business information, it is essential to the money lender your plan for the loan when approved. Approving a loan to a business (especially small businesses) is a considerable risk for many financial institutions.

It would be best if you showed the institution that you plan to use the loan for the right things. When talking about the purpose of the loan, briefly tell the lender how you plan to use the business loan. Be concise and professional, yet offer enough details for total insight.

Be persuasive enough to help the lender see your vision and show them you have what it takes to use the loan properly.

3. Provide Repayment Assurance

Before money lenders approve business loss, they want to ensure they receive their money and interest at the due date. Without proper assurance, they will be skeptical and might refuse to approve the loan for disbursement. After drawing out the purpose of the loan you are requesting, it is essential to detail how you mean to repay the money on or before the duration of repayment. 

What are your plans to make back the money? How soon can you make money? Are there any risks that are expected? Still being persuasive yet professional, describe how you expect to pay the loan back. However, don’t just draw out a plan using words. Offer evidence to support your plan.

This will build your credibility and increase your chances of the loan being approved. Your evidence can include a business plan, personal finance and credit history (do you have bad credit? Here is all you need to know about getting a business loan with bad credit ), past business financial decisions and results, and any other relevant financial details.

As with any other letter, it is essential to close your business loan request letter. Your closing is your last chance in the letter to persuade the money lender to approve your application and agree on specific loan terms if possible. In the closing part, you can convey what approving the loan will mean to your business without sounding desperate.

Remain professional yet courteous at this point in your letter. The closing part of your business loan request letter is also an excellent opportunity to negotiate for specific terms, such as a certain interest rate or a longer repayment term. However, don’t just tender your requests.

Back them up with compelling reasons why the lender should take on these terms.

How To Write A Request Letter For A Business Loan

Now that you are familiar with the essential elements of a professional business loan request letter, it is essential to know how to write a convincing and successful request letter. Because your request letter plays an integral role in the success of your business loan application process, knowing the best way to write one is vital to your ability to win a loan.

Business loan request letters are usually about one page in length. However, they should be written professionally and in great detail.

1. Heading And Greeting

When writing a letter, it is a formality to have the heading and greeting first. The loan request letter is not left out. At the top of your business loan application letter, you are expected to leave a formal greeting and belief introduction of yourself. This is where the basic business information comes into play.

• Begin by writing your name and contact information
• Date the letter correctly (when the letter was written)
• Include the name, title, and other important contact information of your loan agent
• Include a subject line that states you are applying for a loan and the amount of loan you are applying for 
• Include a formal greeting.

Below is an example of a format for the heading and greeting section of your letter:

[Company/Business Name]

[Business Address]

[Lender Name]

[Lender Title]

[Lender Institution Name]

[Subject]: 

Dear Mr/Miss/Ms./Mrs [Name],

At a glance, the heading and creating part of your letter will tell the lender what they need to know about your business and the type of loan you need.

2. Summary of Your Business Loan Request Letter

What do you need the loan for? The second step and the second element when writing a business loan request letter is to briefly tell your money lender what the purpose of your letter is, the type of loan you need, and the amount you want to borrow. The summary of your business loan request letter is usually only a few sentences short.

The length may vary from letter to letter as every request letter is unique. Regardless, it should be nothing more than a summary.

For example: 

I am writing this to request a [kind of loan] loan in the amount of [amount] for the purpose of [purpose]. 

This is straight to the point but immediately tells the lender what you need and why.

3. Basic Information About Your Business

Following the summary of your business loan request letter, it is essential to tell your lender all they need to know about your business. To do this, you will provide basic information about your company. Although lenders want to know as much as they can about you and your business, they do not have the time to read pages upon pages of all information about your company.

They spend so much time processing other loan applications that a long introduction can be a big turn-off. So, instead of an entire file on your business history, write out the following:

• Your business’s recognized, registered, and legal name
• Your business’s legal structure (is it a sole-proprietorship company , partnership, or limited liability company?)
• Years of operation or how many years you have been in business for
• A concise description about what your business does or operates in
• Your company’s annual revenue and profit
• Number of employees

4. Description Of The Purpose Of The Loan

After offering the basic introductions, you must tell your lender why you need the loan. In this section, explain to your lender how you plan on using the loan when it is approved. Give them a great but brief insight on the plan and show them you have mapped out the use of the finances every step of the way.

For example, don’t just say you need to buy more stock. Instead, state what stock(s) you need, how much they are, how much you plan to re-sell, and how much revenue you plan to make back from this.

5. Show Your Ability to Repay the Loan

Show the lenders that you are more than capable of repaying the loan given by including several documents that show your current financial ability. Highlight your credit history and present financial disposition using financial statements such as:

• Summaries of up-to-date profit-and-loss or balance statements. This will show the lenders that your business is growing
• Schedules to show repayment plan for other outstanding debt that your company might owe to other lenders
• Future cash-flow projections . This will show your budget for the repayment terms and your ability to pay back.

6. Concluding Elements

As with any other kind of letter, you need to end your request letter with a concluding part. This concluding part should include several elements, such as:

• A final paragraph that refers the lender back to your attached documents and financial statement
• A paragraph persuading the lender to review your package
• A sentence showing the lender that you anticipate speaking to them soon
• Your signature
• A list of all included documents.

Sample Of Business Loan Request Letter

ABC Crescent Street

Miami, FL 12345

Jan. 1, 2022

Jack Stephen

Senior Loan Officer

678 Spring Road

Florida, FL 67890

Re: Small business loan request for $350,000

Dear Mr. Stephen, 

I am writing this to request a small business loan of [input loan type] of $150,000 for the purpose of [input your purpose of the loan]. 123 Movers is a successful business that is well-established in the transportation and shipping industry. Our success is recounted on our official website [input website URL].

123 Movers started operation in April 2018 in one location with just [input number] workers and [input number] trucks. Serving local and international clients, we have grown consistently over three years and now have over [input number] with [input number] of trucks in our services. 

Last year, our annual revenue totaled $1.2 million—[input more information about the growth of the business]. To promote our growth, increase efficiency, and improve the quality of our services, we plan to hire more staff and expand into new market sectors.

We request a [input loan type] to continue our expansion efforts and supplement our growth as a business. [Input more reasons/purpose for the loan application]. A loan in the sum of $350,000 will enable us to [state how the loan will help your business in this paragraph]. 

Attached below, please find our recent financial statements and our business plan for your review. I have also attached other necessary documents [state documents] to highlight how strong our financial disposition is. With a credit score of [input credit score], we are confident in our ability to adhere to the necessary loan terms.

Thank you for reviewing our letter and the attached financial documents. I look forward to a favorable response from you at your convenience.

John Doe [signature]

John Doe, Owner

123 Movers.

Perfecting The Art Of Writing Business Loan Request Letters

Writing request letters for business loans can be an intimidating process, especially if you have no practice doing so.

However, all you need is a few trials, and you will undoubtedly master the art of writing business loan request letters like a pro. Request loan letters are essential in many loan application processes, which is exactly why you need to put your best foot forward while writing.

Optimize your letter by including the necessary documents, highlighting your best assets, and following the proper format mentioned above. Include a header and greeting, a concise description of your request, your business’s basic information, a description of the purpose of your loan application, your ability to repay the loan, and a proper concluding element.

Although mastering the art of writing business loan request letters is one of the many steps in making sound financial decisions for your business, the first step begins with finding a financial company dedicated to offering the solutions you need.  With relationships with over 150 different programs and an aim to maximize your business’s growth, we at Coastal Kapital offer innovative financial solutions to business owners with all credit types. 

From equipment leasing to merchant processing, collateral asset and real estate-backed funding, we have all you need to grow your business. Contact us at 866-670-7483 to discuss your financial options!

By: First Union

business-strategy resources

Tips and Tricks of Writing a Business Loan Request Letter

In applying for a commercial loan from a bank or from the SBA, odds are you're going to have to present a cover letter. This is basically your loan request letter. The underwriter will look at this among the first pieces of documentation they examine in terms of your application, so you want to be sure that it is well crafted, does what it needs to do and makes a terrific first impression.

So how do you write such a loan request letter, and what components should go into it? In this article, we cover the details of the said letter and offer a template that you might be able to use for your own purposes.

When to Draft a Loan Request Letter

Most companies aren't aware that they do in fact need a loan request letter. There are essentially two instances in which you will. 1. When asking for a loan from a traditional bank and 2. When applying through the SBA program, they will almost always request such a cover letter.

You do not however always need to include a loan request letter with your application. For instance, if you're applying for a loan through an alternative lender or if you are looking solely for equipment financing then you will not need this letter. Also, in applying for a business line of credit this probably will not be required.

Preparing to Write a Loan Request Letter

The letter, of course, needs to be well written and paint a detailed picture of your business and its financial needs. Other than that, you want to back it with solid facts pertaining to the company. Make sure that you have on hand info regarding your credit score. If you see any discrepancies address them immediately. And have all of your business financial statements accessible so that you can reference these if need be.

The credit score gives the lender insight into what type of credit risk you might be. If you are a good risk, the odds of being approved increase greatly. And your financials show the lender what your company is all about beyond just a score. The financial statement should include profit and loss statement, balance sheet, and a cash flow statement as well.

How a Loan Request Letter Should be Formatted

As with any formal letter, there is a certain formula as far as formatting that you definitely want to follow.

Header and Greeting:

At the top of your letter you will need to include the following:

• Name and contact information
• Name, title and contact information of your loan agent
• A subject line

Summary of Your Request

You want to begin the letter by stating the purpose of writing it and why your business needs to borrow money.

Basic Business Information

This includes:

• Company name
• Legal structure (sole proprietorship, partnership, LLC, S-corporation, etc./)
• What you do
• Years in business
• Annual revenue

Explanation

The lender is going to need to know the purpose behind why you need the loan in the first place. Explain what you'll use the cash for. You want specifics here and you want to offer a brief overview of how you plan to attain your goals once you do have funds in hand.

How Will You Repay Your Loan

This is critical. The bank, of course, wants to be assured that you will not be delinquent or default in any way. You can provide for instance:

• A summary showing business growth over the past year.
• A potential repayment schedule.
• Your cash flow projections.

The end of your letter needs to have:

• Reference to the attached documentation
• Concluding paragraph asking them to review your application and thank them for their time.
• Your signature

Sample Template

[NAME] [TITLE] [BUSINESS NAME] [BUSINESS ADDRESS] [CITY], [STATE] [ZIP CODE] [DATE] [LOAN OFFICER'S NAME] [TITLE] [COMPANY] [ADDRESS] Re: Small business loan request for $[AMOUNT] Dear [LOAN OFFICER'S NAME]: The reason for my letter is to request a small business loan for $[AMOUNT]. The loan will be used for the purpose of [PURPOSE HERE]. [BUSINESS NAME] represents a growing company that actively and proudly serves clients in the [INDUSTRY]. If you visit our website you can learn more about what we do and see how successful we've become. [BUSINESS NAME], a [LEGAL STRUCTURE], began in [DATE] with [NUMBER] workers. Over the past [NUMBER OF YEARS] we have grown consistently and now employ [NUMBER] workers. With an annual sales revenue of $[NUMBER] and a net profit of $[NUMBER], we've been able to maintain positive cash flow and are confident that we will continue to do in the future. The reason for the loan will be not only to foster continued growth but also to hire on a full-time bookkeeper and sales representative. The amount requested is the predicted cost of salary plus benefits for these new roles. Because of our positive cash flow situation and given our monthly budget, we have ample funds to cover monthly repayment. Our projections suggest that by adding these two new positions we will, in fact, generate more revenue and thus be more than capable of repaying the loan in full within [NUMBER OF YEARS]. Attached, is our most recent financial statements, as well as our business credit score report. We are confident that you will find us a safe credit risk. Thank you for your time and consideration. I look forward to working with you. Very truly yours, [SIGNATURE] [NAME PRINTED]

The Importance of the Loan Request Letter

Again, when working with a traditional lender or the SBA, this letter will be of significance. This is your chance to "speak" to them via the application packet and really make your case. The above template is just an example. Of course, you want to inject your own story and your own personality into it. Just always make sure to follow the proper formatting guidelines. There are some trial and error involved as far as creating your perfect letter draft, but if you include all pertinent details and use a professional tone, you will get there.

At First Union, we have worked with many small businesses regarding loans. We offer loans from short term loans to lines of credit . To find out how we can help you, call today !

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Writing a Loan Request Letter

Published at May 31, 2017 by Ana-Maria Sanders

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• Learn how to write and ask for a bank loan, salary advance, or a company loan.

In an ideal world, everyone would have ‘rainy day’ money set aside. These funds would only be used in the event of unforeseen circumstances, such as an accident, illness, emergency home repairs or unexpected car repairs. The average American has little savings and tends to rely on credit cards to cover their ‘rainy days’.

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These days, the financial pressure of growing credit card debt and lack of savings leads millions of people to take out personal loans . Paying off credit card debts with a personal loan has become increasingly common. For those without credit cards and with little money in savings, taking out a loan to cover unexpected bills is all too familiar.

In some cases, requesting a loan could involve writing a Loan Request Letter. This letter serves as a formal introduction and presents your need in a clear, concise manner. Since the letter acts as the lender’s first impression of you, it is crucial to write the best document possible according to the proper format.

Below you will find three common scenarios in which this type of letter would be necessary. Each of these scenarios may call for a formal business letter that would contain specific details and adhere to a particular format.

• A Bank Loan

In general, when using a letter to request money from a bank or credit union, be sure to include your:

• contact information (full name, address, phone number, email, etc.);
• your occupation or employment status;
• and your age.

If the bank or credit union requests other information or details not listed above, be sure to give those as well.

In the letter, you should also establish your relationship and history with the bank. State the account or accounts you hold with the bank and how long you have been an account holder. Then, be clear about the reason for the loan , the amount of money you are requesting along with the length of time you need to repay the loan. It may also be useful to disclose your income along with your regular expenses. If other paperwork and forms are necessary, then state in the letter that these are also included with the letter.

Along with the main document, be sure to attach the paperwork and forms that the bank requires. If mailing the parcel, be sure to send them registered mail with receipt confirmation.

For samples of a typical loan request letter to a bank, click here .

• An Advance on Salary

If you are in need of cash, getting an advance on your salary could be an option. Salary advances are generally loans made in small amounts which are repaid from the employee’s future paychecks. However, not every employer offers advances, so find out if this is an option before writing your missive.

If a salary advance is an option, below are some guidelines for writing this letter:

• Clearly state the amount your want to borrow.
• Present the length of time in which you wish to repay the loan.
• Express the reason for the loan.

If your employer requires additional forms be attached to the request, state that these are attached and submit them along with the letter to the appropriate person or department.

Click here to view sample loan request letters to an employer.

• A Loan from a Company

If you are unable to get a bank loan or an advance from your employer, you may turn to other types of lenders. If the company from whom you are seeking a loan requires a written document, here are some guidelines.

Be clear about the reason for the loan, how much money you need and the timeframe in which you plan to repay it. In addition, the company may ask that other information and additional paperwork be submitted. Follow their requirements with exactness to improve your chance of getting a loan.

• Final Thoughts

In addition to all of the above specifics for each type of letter, there are also some general things to be aware of:

• Try to be brief, clear, and straightforward.
• Follow the proper form for a business letter, but remain courteous and friendly.
• Make sure to include the proper salutations and greetings, and especially show gratitude.
• Proofread your letter thoroughly before submission.

If you are not confident in your letter writing abilities, ask a family member or friend for assistance.

For general tips on writing request letters, click here . 

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You may be interested in these blogs, too:, 10 tips on how to save money fast, can you prequalify for a personal loan online.

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22+ Sample Loan Application Letters – PDF, DOC

There are times when we need financial aid to push through with our education, business ideas, or other personal projects or goals which require a huge amount of money for its realization. It is for this reason that lending companies have been existing ever since the days of old. Today, the primary step to being taken by someone who wants to borrow money from another individual or institution is to write a loan application letter .

Loan Application Letter

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The Loan Application Process

• Before the loan contract , the borrower would send a loan application cover letter to the prospective lender to express his or her intent to ask for a loan.
• Afterward, when the lender has decided to consider the application for a loan made by the borrower, the borrower, and the lender would convene to negotiate the terms of the loan.
• The payment method, whether personal, through a check, online banking, etc.
• The number of times the payment is going to be made. There are various options. For example, the loan can be paid at one time, or it can be done in yearly or monthly installments.
• The amount of interest to be added on top of the loaned amount. The interest is the amount of money that is charged by the lender to the borrower on top of the amount which he/she has loaned. You may also see job reference letters .
• The assets (land, buildings, vehicles, or other properties) of the borrower would serve as collateral damage in case the borrower fails to make his/her payment on the time it is due.

Basic Senior Typist Home Loan Application Letter Template

Mortgage Loan Application Letter with Boss Recommendation

Professional Medical Loan Facility for Cancer Treatment

Professional Education Application Letter Template

Request Urgent / Emergency Loan Letter for Borrowing Money

Free Commercial Vehicle Application Letter Template

Loan Application Letter for Wedding/Marriage Template

Sample Staff Loan Request Application Letter for Covid-19

Things To Remember in Writing a Loan Application Letter

• Observe the proper rules for writing formal letters.
• State your intent to borrow a specific amount of money.
• Explain in detail the reason for borrowing money. You must be offering a clear, honest, and transparent explanation as to how you intend to utilize the money you intend to borrow. You may also see free application rejection letters .
• Enumerate your assets and liabilities.
• State the time, date, manner, and method which you prefer to make your payment.

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Mortgage loan application letter template, letter of intent for loan application template, house building loan application letter template, gold loan application letter template, group loan application letter template, emergency loan application letter template, foreclosure loan application letter template, follow up loan application letter template, funeral loan application letter template.

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1 Loan Officer Cover Letter Example

Loan Officers excel at evaluating, authorizing, and recommending approval of loan applications, skillfully balancing risk and reward. Similarly, your cover letter is your chance to demonstrate your ability to assess and manage professional risks and rewards, showcasing your skills, experiences, and dedication. In this guide, we'll delve into the best cover letter examples for Loan Officers, helping you craft a compelling narrative that resonates with recruiters.

Cover Letter Examples

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The best way to start a Loan Officer cover letter is by addressing the hiring manager directly, if their name is known. Then, introduce yourself and state the position you're applying for. You should also briefly mention your relevant experience in the field. For instance, "Dear [Hiring Manager's Name], I am writing to apply for the Loan Officer position at [Company's Name]. With my extensive experience in providing loan services and my proven track record in maintaining customer relationships, I am confident I can contribute significantly to your team." This approach shows professionalism and a clear understanding of the role.

Loan Officers should end a cover letter by summarizing their interest in the position and their qualifications. They should also express their eagerness to contribute to the company's success. A strong closing might be: "I am excited about the opportunity to bring my unique blend of skills and experience to your team and am confident that I can contribute to your company's success. Thank you for considering my application. I look forward to the possibility of discussing this opportunity further." Always remember to end with a professional closing such as "Sincerely" or "Best regards," followed by your name. This ending reiterates your interest, highlights your suitability, and opens the door for further communication.

A Loan Officer's cover letter should ideally be about one page long. This length is sufficient to introduce yourself, explain why you're interested in the position, and highlight your most relevant skills and experiences without overwhelming the reader. The goal is to provide a concise, yet compelling narrative about your qualifications for the job. Remember, hiring managers often have many applications to review, so keeping your cover letter concise and to the point increases the chances that it will be read in its entirety.

Writing a cover letter with no experience as a Loan Officer can seem challenging, but it's important to remember that everyone starts somewhere. Here's a step-by-step guide on how you can approach it: 1. **Start with a Professional Greeting**: Address the hiring manager by name if possible. If you can't find the name, use a professional greeting like "Dear Hiring Manager." 2. **Introduction**: Begin your cover letter by introducing yourself and expressing your interest in the Loan Officer position. Mention where you found the job posting and why you are interested in the role and the company. 3. **Highlight Relevant Skills**: Even if you don't have direct experience as a Loan Officer, you likely have other relevant skills that can be transferred to the role. These might include customer service skills, analytical skills, attention to detail, or sales experience. Use specific examples to demonstrate these skills. For example, if you have a background in finance or banking, you can discuss how this has given you a strong foundation in understanding loan processes, risk assessment, and financial advising. 4. **Showcase Your Education**: If you have a degree in finance, economics, or a related field, be sure to highlight this in your cover letter. You can also mention any relevant coursework or projects that have prepared you for the role of a Loan Officer. 5. **Express Your Willingness to Learn**: As you're applying for an entry-level position, employers will be looking for candidates who are eager to learn and grow. Express your willingness to learn and adapt to new responsibilities. 6. **Close Professionally**: In your closing paragraph, reiterate your interest in the position and thank the hiring manager for considering your application. Provide your contact information and express your hope for further discussion. 7. **Proofread**: Finally, make sure to proofread your cover letter for any spelling or grammar mistakes. A well-written, error-free cover letter shows your attention to detail and professionalism. Remember, the goal of your cover letter is to show the hiring manager why you would be a good fit for the role, even without direct experience. Highlight your relevant skills, education, and your eagerness to learn, and you'll be on your way to crafting a compelling cover

Related Cover Letters for Loan Officers

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Related Resumes for Loan Officers

Loan officer resume example.

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What Is a Personal Loan Agreement?

• What's in Personal Loan Agreements?

The Bottom Line

• Personal Loans

How to Write a Personal Loan Agreement

Step-by-step guide to creating a personal loan agreement

Ward Williams is an Editor focused on student loans and other financial products and services. He has five years of professional editing, proofreading, and writing experience. Ward regularly contributes to stories about government policy and company profiles. He received his B.A. in English from North Carolina State University and his M.S. in publishing from New York University.

Investopedia / Zoe Hansen

A personal loan agreement is usually a good idea whether you're lending money to family or friends or borrowing from them. It's a way for you to ensure that both parties understand the loan's terms.

Additionally, a personal loan agreement document can be enforced in court if something goes wrong, such as the borrower failing to make payments. Here's what you need to know about writing a personal loan agreement.

Key Takeaways

• A personal loan agreement document provides the borrower and lender with a way to review terms and expectations.
• Personal loan agreements are used when individuals loan money, not when banks loan money.
• Your personal loan agreement should include identifying information for all parties, clear terms (including the interest rate), and a repayment schedule.
• Personal loan agreements are enforceable by courts.

Personal loan agreements, sometimes called personal loan contracts, are designed as legally binding documents to outline the repayment terms of a loan, which helps the borrower and lender understand expectations .

A personal loan contract can also stipulate whether the arrangement includes collateral. While most personal loans are unsecured (i.e., there's no valuable asset used to secure the loan), it's possible for these arrangements to have some collateral . A secured personal loan contract should include the situations in which a lender could claim the valuable item used to offset the risk of making the loan.

Most personal loan agreement documents include information about the borrower and lender, loan amount, interest rate , fees, repayment terms and schedule, how disputes are settled, and what type of collateral (if applicable) will secure the loan.

Personal loan documents are considered enforceable in court, so a borrower who doesn't meet their obligations could have a judgment levied against them, such as a lien or wage garnishment .

What Should Be Included in a Personal Loan Agreement?

You typically utilize a prearranged contract when signing a personal loan contract with a traditional lender. If you're lending to or borrowing from friends and family, you might need to write your own personal loan agreement document.

If there's only a small amount involved, a simple promissory note might be sufficient. However, in some cases, you may need a more complicated contract. Here are some of the items that should be included when creating a personal loan contract:

• Identification : Those involved in the contract should share their full names and addresses. Driver's licenses and Social Security numbers (SSN) might also be used for further identity verification.
• Date : Dates for signatures, the time the agreement goes into effect, and other important dates should be identified in the personal loan agreement document.
• Loan amount : Include the total amount being borrowed. This is the principal of the loan.
• Collateral : If applicable, include what is being used to secure the loan, its value, and the conditions under which a lender can claim the property.
• Interest rate : The stated interest rate of the loan should be included, and designate whether it's a fixed rate or variable rate . Variable rates should include the provisions for determining a new rate and how often the rate changes. If you're charging any fees (such as origination fees ), you also need the annual percentage rate (APR) , which includes the interest value of the fees.
• Repayment schedule : Using the interest calculation, it's possible to work out a repayment schedule. Often repayment happens monthly, but your agreement can include other arrangements. Make sure the date of the last payment is clear.
• Penalties : Any personal loan contract should include penalties for late payments, in addition to the consequences of default.
• Jurisdiction : State where the agreement will be enforceable. Double-check state laws, as well as mediation requirements, when choosing a jurisdiction.
• Severability clause : This portion of the personal loan agreement is designed to ensure that most of the rest of the agreement remains intact, even if one part of the contract is found illegal or unenforceable.
• Entire agreement clause : Many contracts, including personal loan agreement documents, feature a section detailing that any other arrangements outside of what's documented in the contract aren't part of the agreement.
• Signatures : Finally, don't forget to have the borrower and lender each sign the document.

While not necessary, it might make sense to have others witness the signatures (and sign as well) or to get the services of a notary to officiate over the signing.

Other Clauses You May Find in Business or Bank Loans

While many personal loan documents are quite simple, some can become more complicated thanks to additional clauses that are often included in business or bank loans. Some items you might see include:

• Successors : This clause explains what happens if one of the parties passes away before the agreement is fulfilled.
• Legal expenses : This specifies who's responsible for paying different legal fees depending on the various outcomes of a dispute.
• Modification : You may want to include some steps the parties might take if they want to alter the agreement.
• Credit verification : Signing the agreement typically grants permission for the lender to request documentation designed to help verify your income. You might also see a clause granting the lender permission to review your credit history.

You can find personal loan agreement templates online, such as this one from the Law District:

Example of a Personal Loan Agreement

While you can write your own agreement from scratch, there are several templates that can make it easier to create a personal loan agreement document. Here are examples of how you might fill in template sections:

1. Parties : This Personal Loan Agreement (this "Agreement"), dated as of September 19, 2023 (the "Effective Date"), is by and between Jane Doe (the “Borrower”), with the mailing address of 123 Main Street, in the City of Anytown, in the State of Delaware, and John Doe (the “Lender”), with the mailing address of 123 Any Street, in the City of Everyplace, in the State of New Jersey.

2. Loan Amount : The sum loaned by the Lender to the Borrower will be: Ten Thousand Dollars ($10,000).

3. Payment : This Loan Agreement, which covers the entirety of the principal sum and any interest accrued, will be due and payable via the method specified below:

☐Single payment: The loan, any unpaid interest, and all other charges and fees are due either: On the demand of the lender / On or before ______/_____/20____

☐Weekly installments of __________ Dollars ($________) beginning on ____/_____/20___ and continuing every 7 days until the entire balance is paid in full.

X Monthly installments of one-hundred and eighty-eight Dollars ($188) beginning on 10/19/2023 and continuing every month until the entire balance is paid in full.

☐Quarterly installments of __________Dollars ($________) beginning on the ____ day of each quarter and continuing every quarter until the entire balance is paid in full.

☐Other:__________________________________

4. Interests : (Check one of the options below)

X This Loan Agreement bears interest at a rate of 4.95 percent (4.95%) compounded annually. This must be equal to or less than the maximum usury rate in the Borrower’s State.

☐ This Loan Agreement does NOT bear interest.

5. Late fee : (Check one of the options below)

☐ There is a late fee in this Loan Agreement. If the Borrower does not make a payment within_________ days of the contractual due date. Under this provision, the Borrower agrees to pay the Lender a late fee of ________% of the amount due at the time of the missed payment.

X There is NO late fee in this Loan Agreement.

6. Prepayment : (Check one of the options below)

X The Borrower of this Loan Agreement may pay back the loan in full or make additional payments at any time without incurring a penalty.

☐ The Borrower will incur a surcharge of ________% of the amount paid in surplus to the agreed payment schedule.

7. Income Verification :

The Lender reserves the right to require an income verification to the Borrower. This Verification may include, at least, the following:

• Earnings statement or W-2 form identifying employee and showing amount earned period of time covered by employment.

8. Events of Acceleration :

If any of the following events occur, this will constitute an “Event of Acceleration” under this Loan Agreement:

• The Borrower fails to pay any part of the principal or interest when it is due under the terms of this Loan Agreement; or
• The Borrower becomes insolvent or refuses to pay any debts when they become due.

9. Acceleration : If one of the Events of Acceleration above occurs, the Lender can, at their sole and exclusive option, declare this Loan Agreement immediately due and payable.

10. Remedies : The Lender has the right to remedy any breach of this Loan Agreement. Delays or omissions in exercising the rights granted under this Agreement by the lender do NOT constitute a waiver of these rights. Additionally, no omission, waiver, or delay may invalidate any of the stated terms, nor shall they restrict the Lender from enforcing this Agreement. The Lender’s rights and remedies shall be cumulative and can be pursued singly, successively, or together at their sole discretion.

11. Subordination : The Borrower’s obligations under this Loan Agreement supersede and subordinate all other indebtedness, if any, of the Borrower, to any unrelated third-party lender. 

12. Waivers : The Lender cannot be deemed to have waived any rights provided under this Loan Agreement unless they are provided in writing. This shall not, however, be construed as a future waiver of said rights or any other covered by these terms and conditions.

13. Legal Expenses : In the event any payment made under this Loan Agreement is not paid when due, the Borrower agrees to pay, in addition to the principal and interest owed, reasonable attorneys’ fees. The amount of these expenses shall NOT exceed the maximum usury rate in the State of New Jersey upon the outstanding balance owed by the Borrower under this Loan Agreement. This sum shall be added to any other reasonable expenses the Lender has incurred in exercising their rights and remedies upon default by the Borrower.

14. Governing Law : This Loan Agreement shall be governed by, and construed in accordance with, the laws of the State of New Jersey.

15. Successors : This Loan Agreement binds the Borrower and the Borrower’s successors, heirs, and assigns, however, the Lender may not assign any of their rights or delegate any of its obligations without the prior written consent of the holder of this Agreement.

16. Signatures : IN WITNESS WHEREOF, the Borrower has executed this Promissory Note as of the day and year first written above.

Lender’s Signature: Jane Doe Date: 9/19/2013

Print Name: Jane Doe

Borrower’s Signature: John Doe Date: 9/19/2013

Print Name: John Doe

The Securities and Exchange Commission (SEC) also has a template you can use to make a personal loan agreement.

Frequently Asked Questions (FAQs)

Does a personal loan agreement need to be notarized.

No, notarizing a personal loan agreement isn't usually required. However, it can help to have an "official" record of the contract to encourage both parties to take the terms seriously.

Can a Personal Loan Agreement Be Changed Over Time?

Yes, if all concerned parties are willing to change the agreement, it's possible to modify the original. However, there should be an agreed-upon process to follow.

If I'm Lending Money, How Much Interest Can I Charge on a Personal Loan?

In general, you should charge interest in line with the prevailing market. However, you are limited only by state laws (usually the borrower's). You can charge up to the amount allowed by state law.

How Is a Promissory Note Different From a Loan Agreement?

A promissory note is often considered a type of loan agreement. However, many promissory notes are much simpler than a full contract, simply stating the amount borrowed and when it should be repaid.

Anytime you borrow or loan money, consider having a loan agreement in place to protect both parties and to clarify terms, especially when lending money to family and friends . Writing a personal loan agreement document can provide all parties with information and it can reduce misunderstandings about the terms of the loan and its repayment.

Legal Information Institute. " Loan Agreements ."

Consumer Financial Protection Bureau. " What Is a Judgment? "

U.S. Securities and Exchange Commission. " Loan Agreement and Promissory Note (Example) ."

LawDistrict. " Personal Loan Agreement ."

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How to Write an Application Letter (Sample Included!)

Whether you’re applying for a job , internship , scholarship, or volunteer position, a well-crafted application letter can help you stand out. It's your chance to introduce yourself and make a strong first impression that sets you apart from the competition.

But how do you write an application letter that’s effective? Below, we’ll explain when to use this method of introduction and give you practical tips on writing one that gets results. Plus, we've included a sample application letter and a template to help you create the perfect document for any opportunity.

Apply for the role of your dreams! One of these open jobs on The Muse could be the perfect fit »

What is an application letter?

An application letter is a document sent with your resume to provide additional information on your skills and experience. It's a crucial part of an application for work as it introduces you to potential employers and highlights your qualifications.

While some companies request it at the beginning of the application process, others might ask for it later, or not at all—but it's always a valuable addition.

Unlike a resume, which outlines your work history, a written application allows you to elaborate on your achievements and how they relate to the job you are applying for. It is a much more specific way to introduce yourself and explain why you would be a good fit for the job.

How is an application letter different from a cover letter?

Some people use the terms “application letter” and “cover letter” interchangeably, but there are subtle differences between the two.

An application letter serves as your formal introduction to a potential employer. It highlights your interest in the role, your qualifications, and why you're a good fit for the position. It's a standalone document that provides a comprehensive overview of your skills and experiences.

On the other hand, a cover letter is usually more concise than an application letter and serves as a complementary document to your resume, providing additional context to your job application. It elaborates on specific points from your resume and explains how your background aligns with the job requirements.

Also, job application letters follow a more formal structure, often resembling a traditional business letter. They include your contact information, the date, and the employer’s contact information at the top. An application letter is usually addressed to a specific individual, such as the hiring manager or recruiter. While cover letters also have a professional tone, they can be less formal in structure.

Finally, the application letter is used primarily for job applications, internship applications, scholarship applications, and volunteer positions. In contrast, the cover letter is specifically used to accompany a resume during job applications.

When do you need to send an application letter?

Application letters are typically required when applying for jobs. However, there are other scenarios where you might need one:

• Scholarship applications: When applying for scholarships, this kind of letter can help you stand out by showcasing your academic achievements and career goals .
• Volunteer positions: Some volunteer organizations require an application letter to understand your motivations and skills relevant to the position.
• Internship applications: Internships often require this document to understand your interest in the role and what you hope to gain from the experience.
• Networking purposes: Sending one when reaching out to potential mentors or industry professionals can help you establish a connection and explain your career aspirations.

7 tips on how to write a job application letter

Writing an effective application letter involves more than just summarizing your resume. Here are seven tips to write yours:

1. Research the company—at least do a quick Google search!

Before you start writing, research the company to understand its culture, values, and needs. Tailor your letter to align with the company’s mission and the job description. There is nothing better for an HR professional than feeling that you don’t just want any job; you want to work with them for specific reasons, such as X and Y.

“Address the letter to the hiring manager by name if possible,” says Mike Chappell, CEO of FormsPal , who has more than a decade of experience reviewing application letters. “This shows that you’ve done your research and are genuinely interested in the company.”

2. Use a professional format and design

Your application letter should follow a formal letter of application format. Use a standard font like Times New Roman or Arial, and keep the font size between 10 and 12 points. Include your contact information, the date, and the employer’s contact information at the top of the letter.

There are many layouts online that you can use. Find one that represents your style and complements your resume.

3. Make it engaging from the start with a strong opening

Your opening paragraph should grab the reader’s attention. Mention the position you're applying for and where you found the job listing. If you were referred by someone, include their name. Briefly introduce yourself and explain why you’re interested in the role.

4. Highlight your qualifications—what you can’t fully convey in your resume

In the body of your applicant letter, highlight your relevant skills, experiences, and achievements. “Use specific examples to showcase your accomplishments and how they relate to the job you’re applying for,” Chappell says. “ Quantifiable results can make a strong impact.”

Avoid repeating information from your resume; instead, expand on your most relevant experiences.

5. Show enthusiasm and genuine interest

Employers want to hire candidates who are enthusiastic about the role and the company. Show your excitement for the opportunity. Explain why you are specifically interested in this job and how it aligns with your career goals.

6. Keep it concise

While it’s important to provide enough detail, your application letter should be concise. Aim for one page, with three to four paragraphs. Be clear and to the point, avoiding unnecessary fluff.

7. Proofread carefully

Typos and grammatical errors can leave a negative impression on employers. Carefully proofread your letter before sending it. Consider asking another person to review it as well.

Letter of application sample

Here's a super complete example of application letter to help you get started:

August 1, 2024

Ms. Jane Doe

Hiring Manager

Innovative Solutions Inc.

456 Maple Avenue

Springfield, IL 62705

Dear Ms. Doe,

I am writing to express my interest in the Marketing Manager position at Innovative Solutions Inc., as advertised on your company’s careers page. With more than five years of experience in marketing and a proven track record of successful campaigns, I am excited about the opportunity to contribute to your team and drive impactful marketing strategies.

In my previous role as a Senior Marketing Specialist at Creative Solutions LLC, I led a team in developing and executing a comprehensive marketing strategy that resulted in a 30% increase in brand awareness and a 25% boost in lead generation. My responsibilities included overseeing digital marketing campaigns, analyzing market trends, and coordinating with cross-functional teams to ensure alignment with overall business goals. This experience has honed my skills in strategic planning, data analysis, and team leadership.

I am particularly impressed by Innovative Solutions Inc.’s commitment to leveraging cutting-edge technology to deliver innovative marketing solutions. Your recent campaign, which utilized artificial intelligence to optimize ad targeting, is a testament to your forward-thinking approach. I am eager to bring my expertise in digital marketing and campaign management to your team and contribute to similar groundbreaking projects.

My strong analytical skills, combined with my ability to lead and inspire a team, make me a great fit for this role. I am confident that my background and enthusiasm for innovative marketing strategies align well with the needs of Innovative Solutions Inc.

Thank you for considering my application. I look forward to the opportunity to discuss how my skills and experiences can contribute to the continued success of Innovative Solutions Inc.

123 Elm Street

Springfield, IL 62704

[email protected]

(555) 123-4567

Template for an application letter

You can also use the following application format to structure your application letter for a job:

[Recipient’s name]

[Company’s name]

[Company’s address]

[City, State, ZIP Code]

Dear [Recipient’s name],

I am writing to express my interest in the [Job title] position at [Company name] as advertised on [Where you found the job listing]. With my background in [Field or industry] and a passion for [Specific aspect of the job or industry], I am excited about the opportunity to contribute to your team.

In my previous role at [Previous company], I developed [Specific skills or achievements]. I successfully [Describe a project or responsibility], which resulted in [Quantifiable result or achievement]. This experience has equipped me with [Relevant skills] that I am eager to bring to [Company name].

I am particularly impressed by [Company name]’s commitment to [Specific company initiative or value], and I am enthusiastic about the prospect of working with a team that values [Related value or skill]. I am confident that my skills and experiences align well with the requirements of the [Job title] position.

Thank you for considering my application. I look forward to the opportunity to discuss how my background, skills, and enthusiasm can contribute to the success of [Company Name].

[Your Name]

[Your address]

[Your email address]

[Your phone number]

Common mistakes to avoid

When writing a letter of application for employment, be aware of these common mistakes:

• Being too generic: Focus your letter on the specific job and company, and mention detailed information about them. Don’t default to a one-size-fits-all approach or AI-written document. “It is generally best to avoid using generative AI to write your application letters for you,” says Edward Tian, CEO of AI detector GPTZero . “Only you can write about those specific aspects of your identity and experiences in such a personal way.”
• Focusing too much on yourself: While it’s important to highlight your qualifications, make sure to explain how you can benefit the company. “You can talk about your career goals, college classes that piqued your interest in the type of job you're applying to—just make sure that they tie into why they make you uniquely qualified or well-positioned for the job,” Tian says.
• Including irrelevant information: Avoid discussing unrelated jobs or hobbies, for example.
• Using a casual tone: Maintain a professional tone throughout your letter. Avoid slang or overly casual language.

Need a bit more guidance in your job search? Read this next: How to Apply for a Job Online: 10 Tips to Stand Out and Land an Interview

How To Write A Hardship Letter

Updated: Nov 19, 2021, 8:00am

Writing a hardship letter to one or more of your creditors can help you get through a tough financial time. With an understanding of your circumstances and evidence to support your claims, lenders may be willing to give you a more manageable debt payment plan.

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What Is a Hardship Letter?

A hardship letter explains to a lender the circumstances that have made you unable to keep up with your debt payments. It provides specific details such as the date the hardship began, the cause and how long you expect it to continue. You’ll also want to state how you’d like your lender to help, and how your proposed solution will benefit them.

You may want to ask for one or more form of relief, including:

• Pausing your payments
• Reducing your payments
• Securing a lower interest rate
• Extending your loan term
• Forgiving late fees
• Ending your financial obligation for less than the full amount you owe

For example, you might be able to tell the lender: “With a six-month reduction in my interest rate, I will be able to avoid going into default. I expect to find a new job within that time frame. At the end of six months, I will continue making my regularly scheduled payments at my current interest rate.”

What Qualifies as a Hardship?

A hardship is a negative event outside your control that has harmed your finances. Some examples of events that a lender may consider to be a financial hardship include:

• Layoff or reduction in pay
• New or worsening disability
• Serious injury
• Serious illness
• Divorce or legal separation
• Incarceration
• Military deployment or Permanent Change of Station orders
• Natural or man-made disaster
• Long-distance job transfer

Sometimes these events may have happened directly to you, and other times they may have happened to someone you rely on or take care of. For example, a serious illness that affects your child may have forced you to work less and increased your household’s medical bills.

For contrast, some circumstances a lender may not consider a hardship include:

• Loss in property value
• Overspending on nonessential items and activities
• An interest-rate increase on an adjustable-rate mortgage or home equity line of credit
• Temporary income disruption that you can manage with liquid assets or assets that can be liquidated

Do You Even Need to Write a Hardship Letter?

You may not need to write a hardship letter to get the help you need. Some financial institutions provide all the information to request hardship assistance on their websites.

Bank of America, for example, has a page for home loan assistance that walks you through your options, shows what documents you might need and provides phone numbers you can call to ask for help. Through their site, you will learn that if you are struggling to pay a mortgage owned by Fannie Mae or Freddie Mac, you will need to complete an official mortgage assistance application and attach any required documentation.

Some mortgage servicers, such as Fifth Third Bank, will even allow you to complete a hardship application online .

Similarly, American Express has a page where its credit card customers can learn how to request financial relief in the form of temporarily lower monthly payments and interest rates. You may be able to view plan options and enroll by logging into your account online. Other creditors also offer ways to request financial hardship assistance online while logged in to your account.

If you will be making a phone call or speaking with someone via online chat, writing a hardship letter first might help you organize your thoughts. Instead of writing a complete letter, though, you may find it easier to write a script or make a list of bullet points you want to address.

How to Write a Hardship Letter

Get the contact information for your lender’s loss mitigation department. You want to send your letter to a person who is empowered to help you. Include your loan number, name, address and phone number to help the lender identify your account and respond to your inquiry.

State the facts. What caused your situation? What have you done to solve it? Why do you need the lender’s help? Include the date your hardship began and an estimate of whether the problem will be short term (six months or less) or long term.

Do not allude to potential sources of outside money that you might be able to access, such as borrowing money from a family member. This information might hurt your chances of getting help from your creditor—not to mention that your family member would surely prefer to be left out of your financial problems.

Most of all, be concise. Your letter should be no longer than one page.

Be Original

It can be helpful to look at hardship letter examples before writing your own. However, you may undermine your case if you copy and paste a template you find online. It will not be specific to your situation, it will not sound sincere and some of the examples we’ve reviewed have errors or are poorly written.

The best way to show the lender that you’re being truthful about your hardship is to include documents that support your statements. Examples of documents you might want to submit include:

• Bank and brokerage account statements, excluding funds in retirement and college savings accounts
• Recent paystubs documenting current and year-to-date earnings
• Form 1099s or W-2s showing independent contractor and employee income
• Current year and previous year’s signed tax returns
• Employment termination letter
• Medical bills
• Accident reports/police reports
• Repair bills for losses not covered by insurance
• Military orders
• Divorce decree or separation agreement
• Alimony (spousal support) or child support orders
• Death certificate
• Proof of incarceration
• Monthly budget/detailed list of monthly expenses
• Proof of unemployment income
• Disability award letter
• Proof of public assistance
• Notarized affidavit (sworn written statement witnessed by a third party)
• Homeowners association special assessment letter
• Property tax increase notice
• Profit and loss statement for your business

Stay Focused on Goals

Remember that you’re seeking a specific outcome from your hardship letter. State the facts and keep your emotions out of it.

Your letter should propose your ideal solution, or a version of your ideal solution that you think a lender would find reasonable. Give them something they can either accept outright or use as a starting point. Make it easy for the lender to understand what you need and how they can help you.

Have It Reviewed

Even professional writers need others to look over their work. Ask at least one person you trust to read your hardship letter and give you their honest feedback. Is the letter readable? Have you clearly stated your case? If they worked for your lender, would they want to help you?

Sample Introduction

Sometimes the hardest part of a letter is the opening paragraph. Once you have that down, the rest is easy, especially if you have an outline.

The introduction below is straightforward. It does not waste the reader’s time. It states why you are writing and demonstrates that you understand how the process of requesting hardship assistance works. It also provides an outline for what you will cover in the body of the letter.

July 27, 2021

Re: Account no. 1234567

Dear Lender,

I am writing to request financial hardship assistance with my (mortgage/credit card/student loan/auto loan/personal loan/etc.). This letter provides the details of my hardship, the type of assistance I am requesting and the documents that show my hardship.

Bottom Line

If you’re going through tough financial times, you’ve probably experienced a range of emotions: sadness, fear, panic, despair, even shame. You might be feeling alone, but please know that going through financial hardship happens to a lot of people, and creditors are experienced in dealing with these matters.

Reaching out to creditors may be one of the easiest ways to ask for help. You don’t have to worry about straining a personal relationship by asking a friend or family member for a loan. Instead, you’re just negotiating a business arrangement with someone who won’t personally experience any consequences if you pause or reduce your payments for a while. A hardship letter can help you have that conversation with creditors and get financial relief.

Personal finance expert Amy Fontinelle contributed to this article.

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Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.

Business Loan Request Letter Sample: Free & Customizable

In this article, I’ll share a step-by-step guide on how to write a compelling business loan request letter, complete with a template and personal tips from my experience.

Key Takeaways

• Understand Your Audience: Know who you’re addressing the letter to and tailor your language accordingly.
• Be Concise and Clear: Clearly state the purpose of the loan, the amount requested, and how you plan to use the funds.
• Provide Detailed Information: Include relevant financial data, business plans, and how you intend to repay the loan.
• Personalize Your Letter: Share your business story and vision to create a connection with the lender.
• Proofread: Ensure your letter is free from errors and is professionally presented.

Step-by-Step Guide to Writing a Business Loan Request Letter

Step 1: address the letter properly.

Begin by addressing the letter to the correct person. If you know the lender’s name, use it. If not, “Dear Loan Officer” is a suitable alternative. Personalizing the letter can create a connection right from the start.

Step 2: Introduce Yourself and Your Business

Start with a brief introduction of yourself and your business. Mention how long you’ve been in business and highlight any notable achievements or milestones. This sets a positive tone and showcases your commitment to your business.

“I am Jane Doe, the founder of [Business Name], a thriving boutique that has served our community for over five years…”

Step 3: State the Purpose of the Loan

Clearly articulate why you are seeking the loan. Be specific about how the funds will be used, whether it’s for expanding your business, purchasing equipment, or increasing working capital. This shows lenders that you have a strategic plan for the loan.

Table: Loan Purpose Breakdown

Step 4: Provide Financial Information

Trending now: find out why.

Lenders want to see that you have a solid plan for repaying the loan. Include detailed financial information such as revenue, profit margins, and cash flow statements. Highlighting positive financial trends can strengthen your case.

Tip from Experience:

Always be transparent with your financial information. Misrepresenting your situation can lead to trust issues with the lender.

Step 5: Outline Your Repayment Plan

Demonstrate your ability to repay the loan by outlining a clear repayment plan. Include information on your projected revenue increase that will cover loan payments.

Step 6: Include Supporting Documents

Attach relevant documents such as business plans, financial statements, and any other information that supports your loan request. This shows thorough preparation and professionalism.

Step 7: Close with a Personal Touch

End your letter on a positive note, expressing your enthusiasm for the future of your business and how the loan will contribute to your success. Thank the lender for considering your request.

Example Closing:

“I am excited about the future of [Business Name] and am confident that with your support, we can achieve remarkable growth…”

Business Loan Request Letter Template

[Your Name] [Your Business Name] [Your Business Address] [City, State, Zip] [Date]

[Recipient’s Name] [Bank’s Name] [Bank’s Address] [City, State, Zip]

Dear [Recipient’s Name],

I am [Your Name], the [Your Position] of [Your Business Name]. We have been providing [Brief Description of Services/Products] to our community for [Number of Years in Business] years…

[Continue with the steps outlined above]

Sincerely, [Your Name]

Final Thoughts and Personal Insights

From my experience, a well-crafted business loan request letter should not just convey facts but also tell a story. It should illuminate your business’s journey, present your aspirations, and demonstrate your financial acumen. 

Always remember that behind every loan request is a team of people making decisions; connecting with them on a human level can make all the difference.

I’d love to hear your thoughts or experiences regarding business loan request letters. Have you written one before? What challenges did you face? Feel free to share your stories or ask questions in the comments below.

Related Posts

• Business Loan Application Letter Sample: Free & Effective
• Funding Request Letter For Small Business Sample: Free & Effective
• Sample Credit Request Letter To Supplier: Free & Effective

Frequently Asked Questions (FAQs)

Q: how do i convey the urgency of my business loan request in the letter .

Answer : When I wrote my loan request letter, I emphasized the time-sensitive opportunities my business was poised to capitalize on, making it clear that prompt funding was crucial for these time-bound projects.

Q: What financial information should I include in my business loan request letter to make it compelling?

Answer : In my loan request letter, I included detailed financial statements and projections that demonstrated my business’s stability and growth potential, ensuring the lender could see the solid foundation behind my request.

Q: How can I make my business stand out in the loan request letter?

Answer : I highlighted my business’s unique market position and innovative solutions in the loan request letter, showcasing how we differentiate from competitors and why we’re a sound investment.

Q: What tone should I use when writing a business loan request letter to appear professional yet persuasive? 

Answer : In my letter, I adopted a tone that was assertive yet respectful, balancing professionalism with a persuasive narrative that underscored my passion and commitment to my business’s success.

Q: How important is it to mention my business’s repayment plan in the loan request letter?

Answer : I found it crucial to outline a clear and realistic repayment plan in my letter, demonstrating to the lender that I had a thorough understanding of my business’s financials and a solid strategy for loan repayment.

Q: Can sharing a personal story in my business loan request letter make it more effective?

Answer: In my experience, incorporating a personal anecdote that connected my passion with my business’s mission added a compelling touch to the letter, making my request more memorable and impactful.

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Attacks on Walz’s Military Record

By Robert Farley , D'Angelo Gore and Eugene Kiely

Posted on August 8, 2024 | Updated on August 12, 2024 | Corrected on August 9, 2024

Este artículo estará disponible en español en El Tiempo Latino .

In introducing her pick for vice presidential running mate, Kamala Harris has prominently touted Tim Walz’s 24 years of service in the Army National Guard. Now, however, GOP vice presidential nominee JD Vance and the Trump campaign are attacking Walz on his military record, accusing the Minnesota governor of “stolen valor.”

We’ll sort through the facts surrounding the three main attacks on Walz’s military record and let readers decide their merit. The claims include:

• Vance claimed that Walz “dropped out” of the National Guard when he learned his battalion was slated to be deployed to Iraq. Walz retired to focus on a run for Congress two months before his unit got official word of impending deployment, though the possibility had been rumored for months.
• Vance also accused Walz of having once claimed to have served in combat, when he did not. While advocating a ban on assault-style weapons, Walz said, “We can make sure that those weapons of war that I carried in war, is the only place where those weapons are at.” Update, Aug. 12: The Harris campaign says that Walz “misspoke.”
• The Republican National Committee has criticized Walz for misrepresenting his military rank in campaign materials. The Harris campaign website salutes Walz for “rising to the rank of Command Sergeant Major.” Walz did rise to that rank, but he retired as a master sergeant because he had not completed the requirements of a command sergeant major.

A native of West Point, Nebraska, Walz joined the Nebraska Army National Guard in April 1981, two days after his 17th birthday. When Walz and his wife moved to Minnesota in 1996, he transferred to the Minnesota National Guard, where he served in 1st Battalion, 125th Field Artillery.

“While serving in Minnesota, his military occupational specialties were 13B – a cannon crewmember who operates and maintains cannons and 13Z -field artillery senior sergeant,” according to a statement released by Army Lt. Col. Kristen Augé, the Minnesota National Guard’s state public affairs officer.

According to MPR News , Walz suffered some hearing impairment related to exposure to cannon booms during training over the years, and he underwent some corrective surgery to address it.

On Aug. 3, 2003, “Walz mobilized with the Minnesota National Guard’s 1st Battalion, 125th Field Artillery … to support Operation Enduring Freedom. The battalion supported security missions at various locations in Europe and Turkey. Governor Walz was stationed at Vicenza, Italy, during his deployment,” Augé stated. The deployment lasted about eight months.

“For 24 years I proudly wore the uniform of this nation,” Walz said at a rally in Philadelphia where he was announced as Harris’ running mate on Aug. 6. “The National Guard gave me purpose. It gave me the strength of a shared commitment to something greater than ourselves.”

Walz’s Retirement from the National Guard

In recent years, however, several of his fellow guard members have taken issue with the timing of Walz’s retirement from the National Guard in May 2005, claiming he left to avoid a deployment to Iraq.

Vance, who served a four-year active duty enlistment in the Marine Corps as a combat correspondent, serving in Iraq for six months in 2005, advanced that argument at a campaign event on Aug. 7.

“When the United States of America asked me to go to Iraq to serve my country, I did it,” Vance said. “When Tim Walz was asked by his country to go to Iraq, you know what he did? He dropped out of the Army and allowed his unit to go without him, a fact that he’s been criticized for aggressively by a lot of the people that he served with. I think it’s shameful to prepare your unit to go to Iraq, to make a promise that you’re going to follow through and then to drop out right before you actually have to go.”

In early 2005, Walz, then a high school geography teacher and football coach at Mankato West High School, decided to run for public office. In a 2009 interview Walz provided as part of the Library of Congress’ veterans oral history project, Walz said he made the decision to retire from the National Guard to “focus full time” on a run for the U.S. House of Representatives for Minnesota’s 1st Congressional District (which he ultimately won in 2006). Walz said he was “really concerned” about trying to seek public office and serve in the National Guard at the same time without running afoul of the Hatch Act , which limits political speech by federal employees, including members of the National Guard.

Federal Election Commission records show that Walz filed to run for Congress on Feb. 10, 2005.

On March 20, 2005, Walz’s campaign put out a press release titled “Walz Still Planning to Run for Congress Despite Possible Call to Duty in Iraq.”

Three days prior, the release said, “the National Guard Public Affairs Office announced a possible partial mobilization of roughly 2,000 troops from the Minnesota National Guard. … The announcement from the National Guard PAO specified that all or a portion of Walz’s battalion could be mobilized to serve in Iraq within the next two years.”

According to the release, “When asked about his possible deployment to Iraq Walz said, ‘I do not yet know if my artillery unit will be part of this mobilization and I am unable to comment further on specifics of the deployment.’ Although his tour of duty in Iraq might coincide with his campaign for Minnesota’s 1st Congressional seat, Walz is determined to stay in the race. ‘As Command Sergeant Major I have a responsibility not only to ready my battalion for Iraq, but also to serve if called on. I am dedicated to serving my country to the best of my ability, whether that is in Washington DC or in Iraq.'”

On March 23, 2005, the Pipestone County Star reported, “Detachments of the Minnesota National Guard have been ‘alerted’ of possible deployment to Iraq in mid-to-late 2006.”

“Major Kevin Olson of the Minnesota National Guard said a brigade-sized contingent of soldiers could be expected to be called to Iraq, but he was not, at this time, aware of which batteries would be called,” the story said. “All soldiers in the First Brigade combat team of the 34th Division, Minnesota National Guard, could be eligible for call-up. ‘We don’t know yet what the force is like’ he said. ‘It’s too early to speculate, if the (soldiers) do go.’

“He added: ‘We will have a major announcement if and when the alert order moves ahead.’”

ABC News spoke to Joseph Eustice, a retired command sergeant major who served with Walz, and he told the news organization this week that “he remembers Walz struggling with the timing of wanting to serve as a lawmaker but also avoiding asking for a deferment so he could do so.”

“He had a window of time,” Eustice told ABC News. “He had to decide. And in his deciding, we were not on notice to be deployed. There were rumors. There were lots of rumors, and we didn’t know where we were going until it was later that, early summer, I believe.”

Al Bonnifield, who served under Walz, also recalled Walz agonizing over the decision.

“It was a very long conversation behind closed doors,” Bonnifield told the Washington Post this week. “He was trying to decide where he could do better for soldiers, for veterans, for the country. He weighed that for a long time.”

In 2018, Bonnifield told MPR News that Walz worried in early 2005, “Would the soldier look down on him because he didn’t go with us? Would the common soldier say, ‘Hey, he didn’t go with us, he’s trying to skip out on a deployment?’ And he wasn’t. He talked with us for quite a while on that subject. He weighed that decision to run for Congress very heavy. He loved the military, he loved the guard, he loved the soldiers he worked with.”

But not all of Walz’s fellow Guard members felt that way.

In a paid letter to the West Central Tribune in Minnesota in November 2018, Thomas Behrends and Paul Herr — both retired command sergeants major in the Minnesota National Guard — wrote, “On May 16th, 2005 he [Walz] quit, leaving the 1-125th Field Artillery Battalion and its Soldiers hanging; without its senior Non-Commissioned Officer, as the battalion prepared for war. His excuse to other leaders was that he needed to retire in order to run for congress. Which is false, according to a Department of Defense Directive, he could have run and requested permission from the Secretary of Defense before entering active duty; as many reservists have.”

“For Tim Walz to abandon his fellow soldiers and quit when they needed experienced leadership most is disheartening,” they wrote. “When the nation called, he quit.”

Walz retired on May 16, 2005. Walz’s brigade received alert orders for mobilization on July 14, 2005, according to the National Guard and MPR News . The official mobilization report came the following month, and the unit mobilized and trained through the fall. It was finally deployed to Iraq in the spring of 2006.

The unit was originally scheduled to return in February 2007, but its tour was extended four months as part of President George W. Bush’s “surge” strategy , the National Guard reported. In all, the soldiers were mobilized for 22 months.

Responding to Vance’s claim that Walz retired to avoid deploying to Iraq, the Harris-Walz campaign released a statement saying, “After 24 years of military service, Governor Walz retired in 2005 and ran for Congress, where he was a tireless advocate for our men and women in uniform – and as Vice President of the United States he will continue to be a relentless champion for our veterans and military families.”

Walz on Carrying a Weapon ‘in War’

Vance also called Walz “dishonest” for a claim that Walz made in 2018 while speaking to a group about gun control.

“He made this interesting comment that the Kamala Harris campaign put out there,” Vance said, referring to a video of Walz that the Harris campaign posted to X on Aug. 6. “He said, ‘We shouldn’t allow weapons that I used in war to be on America’s streets.’ Well, I wonder, Tim Walz, when were you ever in war? What was this weapon that you carried into war given that you abandoned your unit right before they went to Iraq and he has not spent a day in a combat zone.”

In the video , Walz, who was campaigning for governor at the time, talked about pushing back on the National Rifle Association and said: “I spent 25 years in the Army and I hunt. … I’ve been voting for common sense legislation that protects the Second Amendment, but we can do background checks. We can do [Centers for Disease Control and Prevention] research. We can make sure we don’t have reciprocal carry among states. And we can make sure that those weapons of war that I carried in war, is the only place where those weapons are at.”

But, as Vance indicated, there is no evidence that Walz carried a weapon “in war.”

Update, Aug. 12: In an Aug. 10 statement to CNN, the Harris campaign told CNN that Walz “misspoke.”

“In making the case for why weapons of war should never be on our streets or in our classrooms, the Governor misspoke,” campaign spokesperson Lauren Hitt said in the statement. “He did handle weapons of war and believes strongly that only military members trained to carry those deadly weapons should have access to them.”

As we said, Augé, in her statement, said Walz’s battalion deployed “to support Operation Enduring Freedom” on Aug. 3, 2003, and “supported security missions at various locations in Europe and Turkey.” During his deployment, Walz was stationed in Vicenza, Italy, and he returned to Minnesota in April 2004, Augé said. There was no mention of Walz serving in Afghanistan, Iraq or another combat zone.

In the 2009 interview for the veterans history project, Walz said he and members of his battalion initially thought they would “shoot artillery in Afghanistan,” as they had trained to do. That didn’t happen, he said, explaining that his group ended up helping with security and training while stationed at an Army base in Vicenza.

“I think in the beginning, many of my troops were disappointed,” Walz said in the interview. “I think they felt a little guilty, many of them, that they weren’t in the fight up front as this was happening.”

In an Aug. 8 statement addressing his claim about carrying weapons “in war,” the Harris campaign noted that Walz, whose military occupational specialties included field artillery senior sergeant, “fired and trained others to use weapons of war innumerable times” in his 24 years of service.

Walz’s National Guard Rank

The Republican National Committee has criticized Walz for saying “in campaign materials that he is a former ‘Command Sergeant Major’ in the Army National Guard despite not completing the requirements to hold the rank into retirement.”

Walz’s biography on the Harris campaign website correctly says that the governor “served for 24 years” in the National Guard, “rising to the rank of Command Sergeant Major.” 

Walz’s official biography on the Minnesota state website goes further, referring to the governor as “Command Sergeant Major Walz.”

“After 24 years in the Army National Guard, Command Sergeant Major Walz retired from the 1-125th Field Artillery Battalion in 2005,” the state website says. 

Walz did serve as command sergeant major , but Walz did not complete the requirements to retire with the rank of command sergeant, Augé told us in an email. 

“He held multiple positions within field artillery such as firing battery chief, operations sergeant, first sergeant, and culminated his career serving as the command sergeant major for the battalion,” Augé said. “He retired as a master sergeant in 2005 for benefit purposes because he did not complete additional coursework at the U.S. Army Sergeants Major Academy.”

This isn’t the first time that Walz’s National Guard rank has come up in a campaign. 

In their 2018 paid letter to the West Central Tribune, when Walz was running for governor, the two Minnesota National Guard retired command sergeants major who criticized Walz for retiring before the Iraq deployment also wrote: “Yes, he served at that rank, but was never qualified at that rank, and will receive retirement benefits at one rank below. You be the judge.”

Correction, Aug. 9: We mistakenly said a 2007 “surge” strategy in Iraq occurred under President Barack Obama. It was President George W. Bush.

Editor’s note: In the interest of full disclosure, Harris campaign spokesperson Lauren Hitt was an undergraduate intern at FactCheck.org from 2010 to 2011.

Editor’s note: FactCheck.org does not accept advertising. We rely on grants and individual donations from people like you. Please consider a donation. Credit card donations may be made through  our “Donate” page . If you prefer to give by check, send to: FactCheck.org, Annenberg Public Policy Center, 202 S. 36th St., Philadelphia, PA 19104. 

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Fact-Checking Claims About Tim Walz’s Record

Republicans have leveled inaccurate or misleading attacks on Mr. Walz’s response to protests in the summer of 2020, his positions on immigration and his role in the redesign of Minnesota’s flag.

• Share full article

By Linda Qiu

Since Gov. Tim Walz of Minnesota was announced as the Democratic nominee for vice president, the Trump campaign and its allies have gone on the attack.

Mr. Walz, a former teacher and football coach from Nebraska who served in the National Guard, was elected to the U.S. House of Representatives in 2006 and then as Minnesota’s governor in 2018. His branding of former President Donald J. Trump as “weird” this year caught on among Democrats and helped catapult him into the national spotlight and to the top of Vice President Kamala Harris’s list of potential running mates.

The Republican accusations, which include questions over his military service , seem intended at undercutting a re-energized campaign after President Biden stepped aside and Ms. Harris emerged as his replacement at the top of the ticket. Mr. Trump and his allies have criticized, sometimes inaccurately, Mr. Walz’s handling of protests in his state, his immigration policies, his comments about a ladder factory and the redesign of his state’s flag.

Here’s a fact check of some claims.

What Was Said

“Because if we remember the rioting in the summer of 2020, Tim Walz was the guy who let rioters burn down Minneapolis.” — Senator JD Vance of Ohio, the Republican nominee for vice president, during a rally on Wednesday in Philadelphia

This is exaggerated. Mr. Walz has faced criticism for not quickly activating the National Guard to quell civil unrest in Minneapolis in the summer of 2020 after the murder of George Floyd by a police officer. But claims that he did not respond at all, or that the city burned down, are hyperbolic.

Mr. Floyd was murdered on May 25, 2020, and demonstrators took to the streets the next day . The protests intensified, with some vandalizing vehicles and setting fires. More than 700 state troopers and officers with the Minnesota Department of Natural Resources’ mobile response team were deployed on May 26 to help the city’s police officers, according to a 2022 independent assessment by the state’s Department of Public Safety of the response to the unrest.

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