Why Georgia Business Owners Are Choosing P&L-Only Loans in 2025

The Rise of P&L-Only Loans for Self-Employed Borrowers As we move further into 2025, a growing number of Georgia business owners and self-employed professionals are turning to P&L-only loans to secure financing for home purchases, refinances, and cash-out transactions. These unique loan programs offer flexibility by allowing borrowers to qualify using profit and loss statements prepared by a licensed CPA or tax preparer, rather than the more traditional documentation methods like W-2s, tax returns, or even multiple months of bank statements.

This shift reflects both a change in borrower demographics and the growing disconnect between how self-employed individuals report their income and how traditional underwriting guidelines evaluate it. Many business owners in Georgia operate lean, tax-efficient entities that don’t show their full earning potential on tax returns. P&L-only loans allow brokers to deliver financing options that better reflect their clients’ real-world financial health.

How the P&L-Only Program Works for Qualified Borrowers Unlike conventional full-documentation loans, which require comprehensive verification of income across multiple years and channels, P&L-only loans simplify the process. Borrowers can qualify based on a single-year profit and loss statement, prepared by a certified public accountant (CPA) or licensed tax preparer. These loans are not available for wage earners, only for self-employed applicants who operate sole proprietorships, partnerships, or S-corps.

The statement must cover a minimum of 12 months and align with business banking trends when available. Underwriters use the net income figure from the P&L to calculate debt-to-income (DTI) ratios. Borrowers typically need strong credit—usually a mid-score of 660 or higher—and must meet reserve requirements that vary by LTV and property type.

Benefits for Georgia-Based Entrepreneurs and Self-Employed Professionals Georgia has seen a significant rise in self-employment and entrepreneurship, especially in major metros like Atlanta and growing hubs such as Augusta, Columbus, and Macon. The flexibility of P&L-only loans makes them attractive for borrowers who would otherwise struggle to qualify under traditional underwriting models.

These loans streamline approval times, reduce the need for excess paperwork, and often result in competitive interest rates, especially when paired with strong credit and asset reserves. For real estate professionals and mortgage brokers, they unlock a powerful financing option for an underserved and growing demographic.

Georgia Market Trends Supporting the Surge in P&L-Only Loans A key driver behind the popularity of P&L-only loans in Georgia is the state’s entrepreneurial boom. In 2025, the number of small business applications filed in Georgia is among the highest in the Southeast. This explosion in business formation has led to more self-employed borrowers who need flexible mortgage products.

The Atlanta metro area, home to tens of thousands of small businesses, startups, and independent contractors, has become a prime market for P&L-only loans. Likewise, suburban markets like Alpharetta, Marietta, and Newnan are seeing increased demand for alternative documentation loans, especially among service-based professionals and real estate investors who manage multiple income streams.

Types of Georgia Borrowers Choosing P&L-Only Loans in 2025 P&L-only loans are appealing to a broad range of Georgia-based borrowers, including:

• Entrepreneurs with fluctuating income but consistent profitability • Real estate investors combining business and rental income • Trucking company owners and logistics professionals • Home-based business owners in e-commerce or consulting • Self-employed contractors, medical professionals, and creatives

Some borrowers may also be exploring options like DSCR loans for investment properties, but P&L-only products provide a unique bridge for those who want to include their operational income as a qualifier.

Common Use Cases in the Georgia Market The most common scenarios for P&L-only loans in Georgia include:

• Purchase of a primary or second home by a business owner • Cash-out refinance to access business capital • Debt consolidation for self-employed borrowers with multiple obligations • Bridge financing for property acquisition before selling a current home

In hot housing markets like Sandy Springs, Decatur, and Savannah, brokers are using P&L-only loans to help self-employed clients make competitive offers quickly—without waiting for cumbersome tax return reviews.

Loan Parameters and What Brokers Need to Know Brokers should be familiar with the structural elements of P&L-only programs. Key parameters include:

• Max LTV: Up to 85% for purchase or rate/term; lower for cash-out • Minimum credit score: 660, with pricing improvements for higher scores • Loan amounts: up to $3M in some cases • Reserve requirements: 3–12 months based on credit and LTV • Occupancy: allowed for primary, second homes, and investment properties

Certain profiles are ineligible, including borrowers with recent bankruptcies or foreclosures, non-residents without valid Social Security numbers, and those who cannot provide a CPA- or licensed preparer-certified P&L.

Best Practices for Submitting a P&L-Only File To ensure a smooth underwriting process, brokers should follow these best practices:

• Obtain a 12- or 24-month P&L signed by a CPA or licensed tax preparer • Verify that the net income is sufficient to cover DTI thresholds • Ensure consistency with business bank deposits when possible • Include a letter of explanation for any large variances or one-time events

Presenting a strong compensating factor—such as excellent credit, low LTV, or significant reserves—can make the difference in borderline cases.

Location-Targeted Opportunity: Georgia’s Alternative Lending Landscape Georgia’s diverse housing market and rapidly growing economy make it fertile ground for alternative mortgage products. P&L-only loans are being used heavily in areas like:

• North Fulton County (Roswell, Johns Creek, Milton) • Gwinnett County (Duluth, Suwanee, Lawrenceville) • Coastal Georgia (Tybee Island, Brunswick) • Central Georgia hubs (Warner Robins, Dublin)

The housing appreciation in these regions, combined with high levels of self-employment and access to capital, makes P&L-only loans a logical fit. Brokers should focus their marketing and referral strategies in zip codes where entrepreneurial activity and home equity are both high.

Navigating Scenarios Where P&L May Not Be Enough While P&L-only loans offer significant flexibility, they are not a fit for every borrower. Clients with insufficient net income on paper may benefit more from bank statement loans or hybrid approaches.

For example, if a borrower’s P&L shows aggressive write-offs or net losses, but their bank statements reflect strong deposits, the bank statement program might yield a better result. Similarly, if a borrower owns investment properties, a DSCR loan may be more suitable.

Understanding the full range of Non QM Loan products allows brokers to position the right program for every scenario.

How Mortgage Brokers Can Leverage the Trend To maximize success with P&L-only loans in Georgia, mortgage brokers should:

• Build CPA and tax preparer referral networks • Offer educational webinars for small business owners • Create local marketing campaigns around “mortgages for the self-employed” • Use the Quick Quote Tool to pre-screen P&L scenarios in minutes

NQM Funding offers a seamless broker experience with fast approvals and a deep understanding of the Georgia market, making them a reliable Non QM Lender for alternative documentation deals.

Final Insights: Meeting the Needs of Georgia’s Modern Borrower P&L-only loans are not just a trend—they are a solution to a growing gap in the mortgage landscape. In Georgia, where small businesses are thriving and entrepreneurial income is the norm, brokers who understand how to structure and sell these loans are poised for long-term success.

By aligning with NQM Funding and offering this unique product, brokers can better serve their self-employed clients, expand their loan volume, and maintain a competitive edge in one of the most dynamic housing markets in the Southeast.

Strategic Advantages for Brokers in 2025
P&L-only loans not only benefit borrowers, but they also provide a competitive edge to brokers who know how to market and structure them effectively. In a high-competition environment, brokers who can present streamlined financing options with minimal documentation are more likely to win clients, especially among busy entrepreneurs and small business owners.

These clients often value speed, discretion, and ease over securing the absolute lowest rate. Being able to tell a borrower, “You don’t need to submit two years of tax returns,” is a major win. Brokers should lean into these talking points when building email campaigns, social media content, or educational events.

Understanding Borrower Behavior in Georgia
Self-employed borrowers in Georgia often fall into multiple categories. Some are new business owners who have just completed their first full profitable year. Others are seasoned entrepreneurs looking to upgrade homes, invest in real estate, or access equity. Many of these clients have been turned down by banks despite having the income to support a mortgage.

P&L-only loans are attractive because they provide a fairer assessment of financial capability. They focus on current income performance rather than taxable income adjusted for depreciation or write-offs. This is especially helpful for borrowers in industries like construction, design, consulting, logistics, digital marketing, and legal services.

Pairing P&L Loans with Other Loan Programs
Sometimes, a single loan product may not be enough to meet a borrower’s goals. For example, a client might use a P&L-only loan to refinance their primary residence, while simultaneously using a DSCR loan to purchase an investment property. Brokers who understand how to navigate across Non QM Loan programs can offer comprehensive solutions.

In scenarios involving multiple properties, asset depletion, or delayed financing needs, it’s possible to blend strategies and products. NQM Funding provides support for brokers looking to layer multiple loans or stagger financing timelines for their clients.

Georgia’s Regulatory and Business Environment
Georgia continues to be an attractive state for business formation and relocation. The low cost of living, relatively friendly tax environment, and access to major transportation routes via Hartsfield-Jackson International Airport contribute to its ongoing economic growth. These factors play into the increasing need for flexible mortgage lending.

As businesses grow and expand across Georgia, many owners are choosing to buy homes or second properties near major commercial hubs. P&L-only loans fit well into this picture, especially for borrowers wanting to move quickly on high-value homes or income-producing properties.

Marketing P&L-Only Loans to Referral Partners
One of the best ways for brokers to grow their P&L-only loan pipeline is by partnering with professionals who serve the same audience. Build relationships with:

• Certified Public Accountants (CPAs) • Business attorneys and incorporation specialists • Real estate agents focused on luxury or second homes • Financial advisors and insurance agents

These professionals frequently encounter self-employed clients frustrated by the traditional mortgage process. By educating referral partners about the existence and benefits of P&L-only loans, brokers can position themselves as the go-to expert for non-traditional income borrowers.

What Georgia Borrowers Need to Know in 2025
Borrowers in 2025 are more informed than ever. With the rise of fintech and digital mortgage platforms, they expect a transparent, efficient, and tech-savvy process. Brokers offering P&L-only loans should meet these expectations by:

• Offering clear explanations of required documentation • Providing digital forms and secure document uploads • Setting realistic timelines and expectations • Explaining how lenders calculate income based on P&L

Educated borrowers are more likely to follow through with the process, submit clean files, and refer others to the broker who made financing easier for them.

The Future of Non QM Lending in Georgia
With conventional loan guidelines becoming increasingly rigid, Non QM lending is poised to continue its expansion in Georgia. P&L-only loans, in particular, fill a gap that no traditional product addresses. As business owners continue to increase in number—especially among younger generations—these alternative products will only grow in demand.

Mortgage professionals who specialize in Non QM solutions like P&L-only loans will build a stronger reputation, serve a broader client base, and grow their businesses faster than those relying solely on agency products.

Georgia remains one of the most fertile states for this growth due to its combination of affordability, entrepreneurship, and population diversity.