P&L Only Loans in Georgia: Empowering Self-Employed Borrowers Without Filed Taxes

What Are P&L Only Loans and How They Work

Profit and Loss (P&L) only loans are designed to help self-employed borrowers who may not have filed their most recent tax returns or whose tax strategies reduce their reported income. Instead of relying on W-2s, pay stubs, or federal tax returns, these programs evaluate a borrower’s income through a CPA- or Enrolled Agent-prepared profit and loss statement. By focusing on business financials rather than personal tax documentation, P&L only loans create an alternative route to mortgage financing that more accurately reflects an entrepreneur’s true earning power.

Unlike traditional loans, where underwriters require a minimum of two years of tax returns, P&L only programs can use 12 or 24 months of business performance records. For brokers in Georgia, this opens doors to a growing segment of clients whose businesses generate strong cash flow but whose tax filings paint a less favorable picture. These programs fall under the umbrella of Non QM Loans, making them a flexible option for brokers seeking to meet client needs outside of conventional guidelines.

Why Self-Employed Borrowers in Georgia Need Alternatives

Self-employed individuals often find themselves at a disadvantage in the mortgage market. Business owners, contractors, and gig workers typically write off legitimate expenses that reduce taxable income. While this practice lowers tax liability, it also makes it harder to qualify for traditional mortgages. In Georgia, where entrepreneurship thrives in industries such as logistics, technology, film production, and hospitality, this challenge is especially common. Brokers who can offer P&L only loans stand out as problem solvers for these clients.

For example, a contractor in Atlanta may earn $200,000 in gross revenue annually but write off vehicle expenses, insurance, and office costs that reduce taxable income to $90,000. A conventional underwriter may reject their application based on the lower figure. With a P&L only loan, the borrower’s actual business performance is considered, creating a more accurate representation of their financial ability to manage a mortgage.

Key Features of P&L Only Loan Programs

P&L only loans come with specific features that brokers in Georgia should understand. Loan-to-value (LTV) ratios often reach up to 80%, depending on creditworthiness and property type. Minimum credit scores generally begin around 660, with stronger borrowers receiving more favorable terms. Reserves are required, ranging from three to twelve months of housing payments depending on loan size and profile strength.
Loan sizes typically range from $150,000 to $3 million, covering a wide variety of property purchases and refinances. Borrowers can use these programs for primary residences, second homes, or investment properties. Terms include fixed-rate and adjustable-rate options, with amortization schedules up to 30 years. In some cases, interest-only structures are also available.
To qualify, borrowers must provide a 12- or 24-month profit and loss statement prepared and signed by a licensed CPA or Enrolled Agent. Some lenders may also request recent business bank statements to verify that reported income aligns with actual deposits. Proof of business ownership, licensing, and activity may also be required. These guidelines ensure the loan is based on credible financial reporting while maintaining flexibility for the borrower.

Georgia-Specific Opportunities for Brokers

Georgia is one of the nation’s most dynamic markets for self-employed borrowers. Atlanta has emerged as a hub for technology startups, logistics operations, and film production. Each of these sectors attracts freelancers, entrepreneurs, and small business owners whose income does not always translate cleanly on tax returns.
Savannah’s thriving tourism economy supports thousands of contract workers, small business owners, and gig economy participants who benefit from alternative lending programs. Augusta, with its medical and service industries, and Macon, with its growing logistics base, also present strong demand for flexible loan solutions.
In addition, Georgia’s agricultural sector continues to create a large pool of independent farmers and seasonal business owners who often cannot qualify through conventional underwriting. From North Georgia’s wineries to South Georgia’s peanut and cotton farms, the diversity of self-employment creates fertile ground for P&L only loans. Brokers who can highlight these opportunities to clients will demonstrate valuable local expertise.

Benefits of P&L Only Loans for Borrowers and Brokers

For borrowers, the benefits of P&L only loans are clear. They provide an accessible path to mortgage financing without the need for filed tax returns. This can speed up the process for borrowers who have extended filing deadlines or are working with complex business structures. The flexibility allows business owners to continue maximizing their tax strategies without sacrificing access to mortgage credit.
For brokers, offering P&L only loans expands the client base significantly. Many self-employed borrowers are underserved by traditional lending institutions. By providing an option that fits their financial reality, brokers establish themselves as trusted advisors who deliver solutions rather than rejections. This not only strengthens client relationships but also enhances referral opportunities from professionals such as accountants and business consultants.
The programs also allow brokers to differentiate themselves in a competitive market. While many brokers focus exclusively on conventional products, those who introduce P&L only solutions become the go-to resource for entrepreneurs and small business owners.

Compliance and Documentation Requirements

While P&L only loans are flexible, they still require strong documentation to maintain compliance and credibility. The profit and loss statement must be prepared by a licensed CPA or Enrolled Agent covering either 12 or 24 months. Lenders may require additional documentation to validate business activity, such as business licenses, invoices, or proof of ongoing contracts.
Some programs request supplemental bank statements to confirm cash flow consistency with reported P&L figures. Brokers must educate clients about these requirements upfront, ensuring that borrowers understand the importance of accuracy and transparency. Compliance is not only necessary for loan approval but also protects both the borrower and the lender from future complications.

Potential Challenges Brokers Should Anticipate

Although P&L only loans offer valuable flexibility, brokers should prepare clients for certain challenges. One consideration is cost. Having a CPA prepare detailed financial statements can create an upfront expense that some borrowers may not anticipate. Additionally, interest rates for P&L only programs are generally higher than conventional loans due to the increased risk profile. Brokers should explain these differences clearly so borrowers can make informed decisions.
Another potential challenge involves reserves and liquidity requirements. Depending on the borrower’s profile, lenders may require significant reserves to demonstrate financial stability. Cash-out refinancing options may also come with restrictions. Brokers must guide clients through these nuances, setting realistic expectations about what is possible under current lending standards.
Finally, brokers should help clients manage expectations about turnaround times. While these loans are faster than traditional underwriting, gathering CPA-prepared documentation can take longer than borrowers expect. By setting timelines early, brokers ensure smoother transactions.

How Brokers Can Market P&L Only Loans in Georgia

Marketing P&L only loans effectively requires a strategic approach. Brokers should position these programs as “business-friendly” solutions for entrepreneurs who may not fit traditional lending molds. Partnering with CPAs, business attorneys, and real estate professionals can generate strong referral networks. By educating referral partners about P&L only options, brokers ensure that self-employed clients are directed to solutions rather than turned away.
Messaging should emphasize speed, flexibility, and empowerment. Unlike conventional programs that penalize borrowers for taking deductions, P&L only loans celebrate entrepreneurial income. By highlighting this distinction, brokers can differentiate themselves in a competitive marketplace. Working with an experienced Non QM Lender further reinforces credibility and ensures smooth execution.
Brokers may also consider hosting seminars or webinars targeted at small business owners in Georgia. By educating entrepreneurs about how P&L loans work, brokers not only build authority but also capture a steady pipeline of qualified leads.

Frequently Asked Questions About P&L Only Loans in Georgia

What credit scores are required?

Most programs begin at 660, though higher scores improve rates and terms.

Can borrowers use LLCs for ownership?

Yes, these programs typically allow vesting in LLCs, partnerships, or corporations with personal guarantees.

Are investment properties eligible?

Yes, in addition to primary and secondary residences.

How many months of P&L are required?

Typically 12 or 24 months, depending on the program.

What are the reserve requirements?

Requirements vary from three to twelve months of housing expenses depending on profile strength and loan size.

Local SEO Section: Why Georgia Is a Strong Market for P&L Only Loans

Georgia stands out as a strong state for P&L only lending due to its high concentration of entrepreneurs and independent professionals. Atlanta’s tech startup ecosystem, Savannah’s tourism industry, and Augusta’s medical services create a steady pipeline of self-employed borrowers. The state also has one of the highest rates of small business formation in the Southeast, further fueling demand for Non QM Loan programs.
In rural and suburban areas, many borrowers operate family businesses, agricultural enterprises, or independent contracting firms. These individuals often struggle to qualify under traditional guidelines, making P&L only loans a lifeline for homeownership and investment opportunities. Brokers who emphasize local expertise and align loan programs with Georgia’s economic strengths will build stronger connections with clients.
Furthermore, Georgia’s strong in-migration trends create additional opportunities. Many newcomers arrive with businesses or independent income sources, and P&L loans can help them transition smoothly into homeownership. This demographic shift further underscores the importance of brokers being well-versed in Non QM Loan products.

Next Steps for Brokers Working With Self-Employed Borrowers

For brokers seeking to serve self-employed clients, the next step is connecting them with the right resources. Encourage borrowers to use the Quick Quote tool to explore their eligibility. Share the Bank Statement and P&L program page for additional information. For clients with investment ambitions, DSCR Loans provide another strong option. Brokers working with foreign nationals may find solutions through ITIN loan guidelines.
Ultimately, positioning P&L only loans as part of a wider Non QM Loan portfolio ensures that brokers remain competitive in a market that increasingly values flexibility. By partnering with a trusted Non QM Lender, brokers in Georgia can empower their clients to secure financing that reflects their true earning potential rather than tax-driven figures.
The future of mortgage lending in Georgia will continue to evolve alongside the state’s economy. Brokers who embrace innovative loan solutions today will be best positioned to thrive in tomorrow’s market.