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Use case · Bank financing

Certificate of Good Standing for a bank loan

Banks, credit unions, and SBA lenders require a current Certificate of Good Standing before closing virtually every business loan. The document proves your entity is properly registered with the state and current on its compliance filings. Lenders usually ask for a recent certificate before closing.

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The 30-day rule

Most lenders want a certificate dated within 30 days.

Bank underwriting policy almost always specifies a 30-day recency window for the Certificate of Good Standing. SBA 7(a) and 504 lenders typically apply the same standard: the certificate on file at funding dated within 30 days of the funding event. Some larger commercial lenders extend to 60 days; very few accept beyond that.

If your loan closing date has been pushed and your certificate is about to age out, order a fresh one. Processing time is set by each state; see your state's page.

Common loan types

Which loans require it?

  • · SBA 7(a), 504, and Express loans — universally require Certificate of Good Standing within 30 days of funding
  • · Conventional commercial term loans and lines of credit — most lenders require it at closing
  • · Equipment financing — lessors often require it before funding the equipment purchase
  • · Asset-based lending (ABL) and factoring lines — required as part of perfecting the security interest
  • · Mortgage and CRE financing — required by both lender and title company
  • · Investor and partner buyouts — frequently required at closing
FAQ

Bank loan certificate questions

Why does a bank ask for a Certificate of Good Standing for a business loan?
Lenders treat the Certificate of Good Standing as documentary proof that the borrowing entity is a real, active, legally registered business in its home state. It protects the lender from extending credit to a dissolved, suspended, or administratively forfeited entity that could not be enforced against. SBA underwriting in particular requires it on file before funding.
How recent does the certificate need to be for a bank loan?
Most banks require the certificate to be dated within 30 days of the loan closing. SBA 7(a) and 504 loans typically require it within 30 days. Some larger lenders accept within 60 days. Always ask your loan officer for the specific recency requirement on your file.
What if I get the certificate too early and it goes stale before closing?
It happens often. Processing time for a new certificate is set by each state; see your state's page. If your closing date moves and your existing certificate is past the bank's recency window, just order a fresh one. It's the same low cost.
My loan officer asked for a Certificate of Existence (or Status) instead. Is that different?
No. Certificate of Existence (used in AL, GA, ID, IN, KY, MT, NC, OR, SC, TN, WA, ME, UT, WV), Certificate of Status (CA, FL, MD, NY, WI), Certificate of Legal Existence (CT), Subsistence Certificate (PA), and Standing Certificate (NJ) are all the same legal document. Your state's official version satisfies the bank's request regardless of the name.
What if my business isn't currently in good standing?
The state will refuse to issue the certificate. Usually the cause is an unfiled annual report or unpaid franchise tax. Reinstate first (file the missing report, pay the tax), then order. We notify you immediately and refund in full if the state cannot issue.

Bank closing this week?

Processing time is set by each state; see your state's page. From $50, state filing fee included.

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