Form 2202 must be completed on behalf of the subject business requesting the loan and all affiliate businesses.

Affiliate businesses are defined by the SBA as any business owned 51% or more by a 20% or more owner of the subject business.

Form 2202 documents the subject business and affiliate businesses monthly debt obligations which is essential to determining the debt service coverage ratio or dscr for short and debt to tangible net worth ratio also known as leverage.

Both The dscr and debt to tangible net worth ratios are key indicators used by lenders to determine the businesses ability to repay the requested loan.

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