Underwriting 101 - Capital
Lenders want to know that the small business (operating company) is well-capitalized. They like to see that owners are invested in the company and have a financial commitment. Business owners must have enough capital to support the business and themselves as the company grows. The operating company should have a "cushion" for repayment in the event of a setback.
Lenders require proof that the company or the guarantors have the necessary down payment for the proposed project. This source of capital injection and/or other equity can be a copy of a recent bank or brokerage statement, for example, or might include cancelled checks and copies of invoices from architects and engineers for a commercial construction project.