Cover Letter for Loan Application - Sample Template

Fill out the following letter.  This will be your business plan summary.

BUSINESS Name_____________________
ADDRESS__________________________

Date_________________________

Lender's name, bank name, and address

_________________________________

_________________________________

Re: Loan Request for USD______________ (fill in amount)

Dear (fill in lender's name)___________________________:

I am requesting a small business loan of USD____________. I have experience in this industry including ......(mention experience in industry or training that would qualify you to run this business) _______________________________________________

The market for this business... (include one brief paragraph about the industry and its growth)

________________________________________________

________________________________________________

________________________________________________

My target market is... (include one brief paragraph about your target market/customers)

_________________________________________________

_________________________________________________

_________________________________________________

The competition includes.... (include one brief paragraph about your competition and the unique features of your business and how you plan to attract more customers)

__________________________________________________

__________________________________________________

__________________________________________________

__________________________________________________

___________________________________________________

I am investing USD___________ of my own money. My collateral consists of business assets having a fair market value of USD__________________ and personal assets (if applicable) with a value of USD__________________

This loan will help me meet my business targets, which are to increase sales to USD_________ by the 12th month and increase profits to USD___________ per month. With this loan and in conjunction with this loan, I will make a number of modifications or changes to my current business in order to reach those targets (mention increasing staff, expanding store, signing a new contract, buying more or cheaper inventory, etc.) ____________________________________________________

Attached is my business plan which backs up the loan request. If you have any questions, please contact me at __________________ (include a phone number).

Sincerely,

_________________________ (Your signature)

_________________________ (Your printed name here)