One of our directors heard from a "friend" that small business loans (which he described as less than $300,000) were not required to have the same documentation as larger loans. Does anyone have a clue what he was talking about?

Are they perhaps talking about the SBA low doc programs? They have different documentation requirements than their more indebth programs for small businesses. The threasholds for the program vary depending on the type of loan applied for, but documentation is easier on the low doc program IF a bank is approved to offer it.

Otherwise I'd guess they were talking over too much wine