Question 1

Can I use a bookkeeper instead of a CPA for my P&L statement?

Accepted Answer

No. Lenders require a licensed CPA to prepare and certify the P&L. Enrolled agents and bookkeepers don't meet underwriting standards for this program.

Question 2

How far back do I need P&L statements for income verification?

Accepted Answer

Most lenders want 12-24 months. Two years establishes a stronger income trend and typically gets better pricing than a single year of statements.

Question 3

Does my business need to be registered or incorporated?

Accepted Answer

Not always. Sole proprietors qualify if they have a CPA-prepared P&L. LLCs and S-corps work fine. The structure matters less than documented profit history.

Question 4

Can I get a P&L loan if I just started my business last year?

Accepted Answer

Difficult with only one year. Most lenders want 24 months of P&Ls to establish income stability, especially for seasonal businesses common in Mount Shasta.

Question 5

What if my P&L shows lower income than my bank statements?

Accepted Answer

That's common with high write-offs. The lender uses P&L income for qualification. If bank statements show higher deposits, consider a bank statement loan instead.

P&L Statement Loans in Mount Shasta: Income Docs That Match How You Actually Run Your Business