Do you need a business plan to get a business loan?

When a business plan is required — and when it isn't

The requirement tracks the financing type. SBA loans and traditional bank term loans typically ask for a business plan with financial projections, because they underwrite the business's long-term viability. Faster, revenue-driven products — a business line of credit, revenue-based financing, or a merchant cash advance — usually don't require a formal plan; they lean on your recent bank deposits, revenue consistency, and time in business. So if speed matters or you don't have a plan ready, those products may fit better.

Whether a plan is worth writing often comes down to why you're borrowing: in the Federal Reserve's 2025 Small Business Credit Survey, 46% of financing applicants cited pursuing an expansion or new opportunity as their reason for applying — the growth-stage, plan-driven case an SBA or bank underwriter wants documented — while 56% cited covering operating expenses, the faster, deposit-driven case where a formal plan rarely moves the underwriting.

What a lender-ready business plan includes

• Executive summary — what the business does and how much capital you're seeking
• Company and market — your model, customers, and competitive landscape
• Management team — who runs the business and relevant experience
• Use of funds — exactly how the loan will be deployed
• Financial projections — 2–3 years of realistic revenue, expenses, and cash flow, plus historical statements if you have them

How to make projections credible

Underwriters trust projections that are grounded, not aspirational — tie revenue assumptions to real pipeline, comparable benchmarks, or historical trends, and show you can service the new payment. The SBA publishes free business-plan templates and guidance, and SBA resource partners (SBDCs, SCORE) will review a plan at no cost. ClearValue Lending routes your file to the funding partners whose requirements match — including products that don't need a formal plan at all.

For the writing process itself, ClearValue Books' best books for writing a business plan rounds up guides on structuring each section above and building projections a lender will trust.