A
Accounts Receivable & Accounts Payable Aging Summary
The Accounts Receivable and Accounts Payable Aging Summary is a classification of accounts receivable and accounts payable by the time intervals in which they are held.
Purpose: Aging of accounts reveals delinquency patterns, and identifies concentrations in the maturity of the accounts receivable and payable. Where to obtain: The business should already have a system in place which tracks and or ages the accounts receivable and payable. If the business does not have a tracking system such as this, you need to speak with your accountant.
When we need it: Upon Loan Application.
Account Statement
Letter from Lender regarding outstanding loan.
Purpose: Confirmation of outstanding balance and payment history for prior position liens or liens to be refinanced. Where to obtain: From Lender who has a prior lien position.
When we need it: Upon Loan Application.
Account Status Online
Online version of Account Status System, which will provide you with secure, around the clock access to information on your account. Think of it as 24 hour customer service for all your account needs.
- View the Account Summary.
- View the Customer Statement.
- View the Payment History.
- Update your account information
- Receive alerts or reminders, to keep your account up to date.
- Contact customer service.
Affiliate Financial Statements & Tax Returns
Financial statements and tax returns for each company affiliated/associated with the borrower either by ownership or relationship to business concern. Original signatures must appear at the bottom of the page. Three years of financial statements and tax returns are required.
Purpose: Used to determine the size of the business and affiliates for SBA size eligibility. Also used to determine the financial strength or weakness of the affiliate and its effect on the borrower.
Where to obtain: Your accountant, or self-prepared.
When we need it: Upon Loan Application.
Agreement of Compliance
SBA Form 601 document outlines federal laws regarding discrimination.
Purpose: To confirm that there has not been and will not be any form of discrimination in the completion of a construction project by the borrower, contractor, and any sub contractor.
Where to obtain: Lender to provide; contractor and borrower to execute form.
When we need it: Before construction starts.
AIA Statement/Construction Contract
This document is between the borrower and the contractor, outlining the service to be provided in the construction/leasehold process. This should contain a trade line item breakdown, a time table, and total amount of construction.
Purpose: To verify the exact dollar amount and work to be completed on the project.
Where to obtain: Borrower to get from Contractor.
When we need it: A draft form at application, and final executed copy after Lender reviews and approves (but in all cases, prior to the funding).
ALTA (American Land Title Association) Title Commitment
Document that reflects all liens, encumbrances, encroachments on your property that are on record.
Purpose: To use as a tool to ensure title lien position and that there are no adverse conditions affecting the property.
Where to obtain: Can be ordered by Lender, borrower's attorney, or borrower from Lender's approved list.
When we need it: Should be ordered immediately after credit approval and provided to Lender.
ALTA survey
Survey of the property to include all buildings, encumbrances, easements and encroachments on the subject property. This is for commercial property and is required by the title company and Lender for proper insurance.
Purpose: To confirm buildings are within approved legal boundary lines and that there are no encumbrances, easements or encroachments that adversely affect the property.
Where to obtain: Can be ordered by Lender or borrower.
When we need it: To be ordered immediately after credit approval. Usually takes 2 to 3 weeks to receive.
Appraisal (Real Estate)
To estimate the value of real property.
Purpose: To confirm value of collateral taken.
Where to obtain: Lender to order appraisals from approved appraiser.
When we need it:As soon as possible; borrower to pay for any reports prior to ordering. Usually takes 3 to 4 weeks to receive.
Appraisal (M&E, F&F)
To estimate a value for machinery, equipment, furniture & fixtures.
Purpose: To confirm value of collateral taken.
Where to obtain: Lender to order appraisals from approved appraiser.
When we need it: As soon as possible; borrower to pay for any reports prior to ordering. Usually takes 3 to 4 weeks to receive.
Articles of Incorporation/Certificate of Incorporation
Documentation filed with the state describing general information about a corporation, and creating it as a legal entity.
Purpose: To confirm the legal name of the corporation and to verify its proper formation.
Where to obtain: Accountant, attorney or from the Secretary of State.
When we need it: Upon loan application. New corporation's articles can be submitted upon filed receipt from the Secretary of State.
Articles of Organization
Documentation filed with the state describes general information about a limited liability company and its creation as a legal entity.
Purpose: To confirm the legal name of the company and to verify its proper formation.
Where to obtain: Accountant, attorney or from the Secretary of State.
When we need it: Upon loan application. New limited liability company's articles can be submitted upon filed receipt from the Secretary of State.
Assignment of Franchise Agreement
Gives Lender the ability to transfer borrower's interest of a franchise.
Purpose: Assign interest to another party in case of a loan default.
Where to obtain: Lender provides the form.
When we need it: Must be signed by the franchisor as soon as possible. Usually takes 2 to 3 weeks to receive.
Assumed Name Certificate
Trade name, dba (doing business as) or fictitious name Certificate used by a business, must be filed in the State, county or local recording office.
Purpose: To confirm the legal name in which the entity does business.
Where to obtain: Accountant, attorney or from the office where filed.
When we need it: Prior to Closing.
Authorization to Release Financial Information
Form that requires borrower's signature.
Purpose: This form authorizes Lender to obtain the credit report on the borrower and affiliates. It is also used to authorize Lender to call on trade references and make inquiries regarding bank accounts and bank loans.
Where to obtain: The signature form is located in the Business Loan Application. It can also be obtained from your local representative.
B
Bids/proposals
A written quotation from the vendor outlining the equipment to be purchased or improvements to be completed and the cost.
Purpose: Used to determine costs of the proposed project.
Where to obtain: The vendor from which you are obtaining the service.
When we need it: Upon Loan Application.
Bill of Sale
Written agreement under which title to personal property or other business assets is transferred.
Purpose: Documentation of the sale of the business or its assets, the parties and the price.
Where to obtain: Seller’s attorney, escrow officer.
When we need it: A draft copy is required prior to closing and a final executed copy at closing.
Builder's risk insurance/workers compensation insurance
Insurance to cover any liability of an employer for injuries or sicknesses which arise out of and in the course of employment. Benefits include hospital and other medical payments and compensation for loss of income.
Purpose: In case of builder's negligence or accidents.
Where to obtain:From the contractor.
When we need it:Prior to Closing.
Bulk transfer affidavit
An affidavit that verifies that all creditors of certain types of retail businesses are or will be paid in full and have been given the proper notice. Law created against commercial fraud, where business owner attempts to avoid payment on the debt.
Purpose: To confirm all creditors are paid.
Where to obtain: From seller's attorney or escrow holder.
When we need it: Prior to closing.
Business Hazard Insurance
When Lender is taking machinery and equipment, furniture and fixtures, inventory for collateral, we must be named as loss payee.
Purpose: To insure all collateral in case of a hazard occurrence; insurance to replace collateral in order to continue business operations.
Where to obtain:Borrower to provide name, address and phone number of Business Insurance Agent. Lender will contact Agent to request insurance certificate.
When we need it: Prior to Closing.
Business License
Any applicable license for the operation of any particular business.
Purpose: To confirm that the business is complying with necessary regulatory agencies.
Where to obtain:State, county, township, city, professional or specialized agencies.
When we need it: Prior to Closing.
Business Plan
A Business Plan is a document required of new, changing or expanding businesses. This plan should identify the business, its name, location, officers, management, product/industry, competition. It should also include an explanation of how the firm will use the loan, and explain management goals and earning objectives over the next three to five years. It is accompanied, generally, by a projection (see above) of anticipated earnings and expenses over the same period.
Purpose: The Business Plan tells us about you, your business, your goals, products, etc. and lets us know how our loan will help you in your business. The Business Plan will also reflect how well you know your business/industry and how much research you've done on your project. The plan should be thoughtfully written and cover all aspects of your business.
Where to obtain: You will have to write one, or see your accountant for help, or visit one of your local libraries for help or samples.
When we need it: Upon Loan Application. A start up or expansion loan is not considered a complete application and cannot be reviewed or submitted to the Credit Department without the Business Plan.
Business Tax Returns
Tax returns filed with the IRS for your business. The return may be the schedule C from your personal tax return, a corporate tax return, or a partnership tax return. If the return has not been filed by the due date, an extension must be included. Original signatures must appear at the bottom of the first page. Three years of tax returns are required.
Purpose: Repayment of the loan is based on the financial performance of the company as reflected on the tax returns.
Where to obtain: Your CPA, accountant, or self-prepared.
When we need it: Upon Loan Application.
By-Laws
Rules adopted for the regulation of a group's own action.
Purpose: To confirm ownership interests, office/title & check for any special provisions.
Where to obtain: From borrower's attorney.
When we need it: Upon Loan Application. New corporation's by-laws can be submitted upon filed receipt from the Secretary of State.
C
Certification of Architect
An AIA document provided by the architect.
Purpose: To confirm the amount and work completed by the contractor for payment.
Where to obtain: Architect to provide.
When we need it: For each draw (payment) requested by contractor.
Certificate of limited partnership
Instrument which creates a limited partnership. Document must be filed with the State.
Purpose: To confirm the legal name and proper formation of the partnership.
Where to obtain: Attorney or Secretary of State.
When we need it: Upon Loan Application. New partnerships can be submitted upon filed receipt from the Secretary of State.
Change Orders
Certificate from contractor indicating changes to the original project, must be submitted for approval by Lender before work is done.
Purpose: To notify and get approval from Lender as to changes being requested.
Where to obtain: Contractor to provide, borrower must sign.
When we need it: As soon as the needed change is recognized.
Citizenship (proof)
If you are not a U.S. citizen, a copy of your Alien registration card is sufficient.
Purpose: Indicates to Lender that you are legally able to work in the United States.
Where to obtain: You must file certain documents with the U.S. government to obtain an Alien Registration Card.
When we need it: Upon Loan Application.
Commercial Certificate of Occupancy
Document issued by the building department or governmental agency where the property is located.
Purpose: To confirm that the property has passed all inspections and can be occupied safely.
Where to obtain: From proper governmental authority (city, county or township), not available in all jurisdictions.
When we need it: Prior to Closing.
Commitment Letter from Interim Lender
Letter provided to borrower outlining the terms and conditions of interim or construction loan.
Purpose: Lender needs to verify interim Lender is in place, the terms and conditions of the interim loan.
Where to obtain: Interim Lender to Provide.
When we need it: Before Construction Starts.
Condominium Documents
Master Deed, By-Laws and other recorded documents filed with the county.
Purpose: To verify that the condominium unit is properly designated and the condominium association is properly formed.
Where to obtain: County office where property is located.
When we need it: Before or simultaneous with the issuance of the Title Commitment.
Construction Budget
Prepared by the contractor.
Purpose: A list of expenses needed to complete the project.
Where to obtain: Contractor to provide.
When we need it: Before Construction Starts.
Construction Timetable
Prepared by the contractor.
Purpose: A targeted time frame it will take to complete the project.
Where to obtain: Contractor to provide.
When we need it: Before Construction Starts.
Cookie
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Cost Breakdown
An itemized list of all costs to complete construction.
Purpose: A breakdown of all the fees and costs of the project.
Where to obtain: Contractor to provide.
When we need it: Before construction starts.
D
Deed
Instrument on record (or to be filed) with the county clerk's office, reflecting a transfer of title to real property.
Purpose: To reflect current or proposed ownership of property.
Where to obtain: County clerk's office where property is located or seller's attorney.
When we need it: Should be ordered with the Title Commitment or provided at closing.
Demographic Study
A report that describes the population in the local and surrounding area of a new location of a business.
Purpose: It informs the Lender of the population within the local area, the median income, education, age, gender, number of households, and other statistical data about the population for the past three years. The Lender uses this information to determine if a potential new business site has the appropriate demographic profile to contribute to the success of the business.
Where to obtain: The information for the report can be obtained from your local municipal office or your local library. You can also purchase this report from an appraiser, a real estate broker, or real estate agent.
When we need it: Immediately.
E
Environmental Questionnaire
SBA and Lender requirement. One questionnaire must be completed for every piece of commercial real estate to be taken as collateral.
Purpose: The questionnaire identifies any potential environmental risks associated with a particular site. The identification of a potential risk may lead to the requirement of an environmental risk assessment report.
Where to obtain: The Environmental Questionnaire is located in the Business Loan Application. Should additional testing be required, we will order the appropriate assessment.
When we need it: The questionnaire should be submitted with the initial application so that it may be reviewed and any potential problems be identified early in the process and brought to your attention as soon as possible.
EZAPP
It's an on-line loan application system, which will provide you with secure way to input loan application. EZApp includes a checklist of forms to complete on-line. Edit features let you repeatedly change information, while common data is automatically carried across forms. Subtotals and totals are automatically calculated. EZApp won't let you miss filling in any fields. And when your application is complete, your Regional Account Manager is automatically notified.
F
Form 4506:
A form which must be processed with the IRS prior to closing.
Purpose: The form authorizes the Lender to verify business and personal tax information with the return information provided to us. Each borrowing corporation or partnership must provide a signed form. For a business acquisition, the Seller must also provide a signed form. Individual returns are verified in the case of a sole proprietorship.
Where to obtain: The form is provided in the Business Loan Application.
When we need it: As soon as possible. The verification process with the IRS sometimes takes a long time. We need the form early to expedite the process.
Franchise or License Agreement
Executed agreement outlines terms and conditions between franchisor and franchisee.
Purpose: To verify that the franchisor and franchisee have a contract.
Where to obtain: The franchisor should provide.
G
General partnership agreement
Contract between two or more persons.
Purpose: To confirm the legal name of the partnership, check the ownership, and the duties/authority of the principles.
Where to obtain: Prepared by borrower or borrower's attorney.
When we need it: One should be submitted with the loan request application.
Gift Letter
Letter stating that money was given as a gift and repayment is not expected.
Purpose: To document that the borrower injected funds are a gift.
Where to obtain: From person giving the gift.
H
History of Business
History of Business is located in the Business Loan Application. It asks you about your company's history, products, the nature of your business, your customers, competitors, etc.
Purpose: This document prompts you for information about your business that would be helpful to us in understanding your business and making a credit decision.
Where to obtain: The History of Business document can be found within the Business Loan Application.
When we need it: Upon Loan Application.
I
Injection
This money comes from borrowers' personal account. This money is used to capitalize the borrowing entity.
Purpose: SBA guidelines state that all capital injection by borrower must be documented.
Where to obtain: Customer to provide invoices and canceled checks or bank statements showing cleared checks for all items paid for in conjunction with loan the project.
When we need it:Prior to Closing.
Interim Construction Lender
This Lender provides the financing directly for construction.
Purpose: Lender needs to partner with interim Lender to get updates and coordinate closing.
Where to obtain: Borrower to obtain interim Lender. Sales person may assist in this process. Name, address and phone number are needed.
When we need it:Before construction starts.
Invoices
A formal invoice from a vendor, on vendor's letterhead.
Purpose: To make payments to vendors or proof that borrower has paid for invoice, which is marked paid by vendor.
Where to obtain: From vendor.
When we need it: As soon as the invoice is provided to borrower.
IRS Identification No.
A letter issued by the IRS office, with the corporation's Tax ID No.
Purpose: To confirm that the corporation is registered.
Where to obtain: Any IRS office.
When we need it: As soon as the letter is issued.
J
K
L
Land Lease
Lease agreement between land owner and building occupant.
Purpose: Certain rights are transferred to the building occupant via this lease.
Where to obtain: You should have in your business files or you can obtain it from your future landlord.
When we need it: Should be Sent Immediately.
Landlord Waiver
When borrower is a tenant, a landlord waiver must be signed by the landlord, relinquishing his/her rights to our collateral.
Purpose: To ensure that the Lender can access/retrieve the collateral if the borrower defaults on the loan.
Where to obtain: Lender to provide the document and borrower to obtain signatures.
When we need it: Prior to Closing.
Lease
A copy of the commercial lease agreement between you and your landlord.
Purpose: The Lender uses the lease to check the term of the lease and make sure it is as long as our loan agreement. The Lender also uses the lease to get the rent payment, which is used to determine cash flow.
Where to obtain: You should have in your business files or you can obtain it from your future landlord.
When to we need it:As soon as the landlord provides one or the attorney prepares one.
Letter of Intent from Franchisor
A letter from the Franchise approving you as a potential franchisee
Purpose: Provides proof to the Lender that you have been approved by the Franchise.
Where to obtain: From the Franchisor.
When do we need it: Immediately Upon Loan Application.
Lien Waiver
A waiver against a lien filed by contractor, subcontractor, materialmen, etc. Such liens attach to the land and improvements erected thereon.
Purpose: To secure priority of lien position by Lender in the property where the work is performed.
Where to obtain: Contractor to provide.
When we need it: One Week Prior to Closing.
Life Insurance
Taken as collateral on a loan. Borrower must obtain original insurance policy and request an Assignment of Life Insurance Policy by signing and recording a collateral form at the HOME office of the life insurance company and then forward the recorded form to Lender.
Purpose: Upon the death of the insured the assignment would ensure payments on the loan.
Where to obtain: Home office of the insurance company.
When we need it: One Week Prior to Closing.
Limited Partnership Agreement
An entity where one or more persons with unlimited liability (general partners) manage the partnership, while one or more persons only contribute capital (limited partners). Limited partners have no right to participate in the management and operation of the business and they assume no liability beyond the capital contributed.
Purpose: To confirm the legal name of the partnership and check the ownership status.
Where to obtain: Prepared by borrower's attorney.
When we need it: Should be submitted once received filed from the Secretary of State.
List of Corporate Officers
On corporate letterhead, list all the corporate officers.
Purpose: To identify the individuals of the corporation and their proper titles.
Where to obtain: Can be prepared by borrower on corporate letterhead.
When we need it: Should be submitted with the loan request application.
Liquor License
License that allows borrower/business to sell liquor.
Purpose: Lender needs proof that license is in force.
Where to obtain: Proper governmental authorities.
When we need it: A copy should be submitted once one is issued.
Loan Request Form
The Loan Request Form is in the Business Loan Application provided to you by the Regional Account Manager.
Purpose: The Loan Request Form provides us with the information we need to make a valid and supported decision regarding your application and with supporting information such as your attorney's name, your accountant's name, etc.
Where to obtain: Your Regional Account Manager should have already provided you with a copy of the Business Loan application. If you need another copy, please call him/her, or call 1-800-221-7252 for additional assistance.
When we need it: Immediately. We need a completed Loan Request
Form upon application and submission to the Credit Department for underwriting purposes.
Loan Status Online
Online version of Loan Status System, which will provide you with secure, around the clock access to information on the status of your loan application at evey stage of the process. Think of it as 24 hour customer service for your loans.
Follow the progress of your loan from the time that you apply to the day your loan closes
Review details of the loan product you've selected
Check which documents have been received and which are still missing
Contact your Operations team
M
Management Resume
The Management Resume is a brief account of your professional or work experience and qualifications. It can be found in the Business Loan Application. This form must be completed by all active principals owning 20% or more of the business and/or for all key management personnel.
Purpose: Your Resume tells the Lender about your educational background and your work experience. If you already have a completed and detailed resume, you may use your personal resume instead of the form BUT you must still sign the form, and complete the right hand section of the form which asks about previous SBA debt and about your personal and business background.
Where to obtain: The Management Resume is found in the Business Loan Application.
When we need it: Upon Loan Application.
M&E, F&F list - (Machinery & Equipment, Furniture & Fixtures)
A full description of the equipment, furniture, and fixtures the borrower is planning to purchase or the Lender is making as collateral. The list should include the model number and price (estimate if exact price is not known).
Purpose: A list that includes equipment to be financed or taken for collateral. Helps Lender determine if equipment purchased is normally used in the business; how the business will benefit from this equipment; confirms prices against similar types of equipment; and assists in determining its value.
Where to obtain: Borrower to make list from invoices or take a manual inventory.
When we need it: Prior to Closing.
N
Notes Payable
Alisting of all loans reflected on your company's balance sheet, including any officer's loans. If there is more than one business, Lender must see Notes Payable Schedule for each company. If there is no debt, indicate "None", then sign and date the form. If you are applying for a loan to refinance any of these obligations, please mark them "**" accordingly.
Purpose: The Notes Payable schedule allows the Lender to analyze your current monthly debt and cash flow requirements in light of the obligation you are requesting. In the case of a request for the refinance of debt, it allows us to prove eligibility for refinance to the SBA. In this case, you must also include a copy of the Note to be refinanced.
Where to obtain: You need to prepare it. See the Business Loan Application.
When we need it: Upon Loan Application.
O
Operating Company
A lease between the owner of the real property and the operating company.
Purpose: To show that the operating company or business is leasing 100% of the property.
Where to obtain: Prepared by borrower or borrower's counsel.
When we need it: Prior to Closing.
P
Partnership Agreement (or Articles of Partnership)
The written agreement between the partners which outlines each partners rights in and obligations to the partnership.
Purpose: The Lender uses this document to determine who are the general and limited partners (if any), who can sign legal documents, the limits of each partner's financial obligations, how profits and losses are allocated, how the partnership can be dissolved, purpose of the partnership, and the correct legal name.
Where to obtain: Borrower's attorney.
When we need it: Upon Loan Application.
Payoff letters
Utilized in purchase or refinances.
Purpose: Confirm exact amount owed to seller and/or pay off bank.
Where to obtain: Requested from mortgagee holding the note on the property; letter to include interest per day.
When we need it: One Week Prior to Closing.
Permits, approvals, licenses
Issued by the municipalities as approval for type of business to be conducted on the site, also by building department for construction, renovations, additions, etc.
Purpose: To confirm business can lawfully operate and that building/construction has been authorized by the appropriate party.
Where to obtain: From the proper City, County or Municipality.
When we need it: Before first disbursement of loan proceeds and before construction can begin.
Personal Financial Statement
The Personal Financial Statement is your personal balance sheet - a listing of your assets, your liabilities and your net worth. Each owner/principal owning a 20% or more share of the business must complete this form. Also, each person providing a personal guaranty must complete this form. The forms must be signed and dated.
Purpose: The Personal Financial Statement allows the Lender to assess your personal financial condition. This details your personal liquidity (cash, savings), and/or any leverage (debt/obligations). You should include your credit card debts on this statements as liabilities. Your home equity loan or unused line of credit is also a liability and should be reflected on this statement in Section 2. Realistic values should be given to real estate assets.
Where to obtain: The Personal Financial Statement can be found in the Business Loan Application.
When we need it: Immediately, Upon Application for Financing.
Performance Bond
Contractor's bond, guarantying that the contractor will perform the contract and providing that, in the event of a default, the surety may complete the contract or pay damages up to the bond limit.
Purpose: To insure completion of construction
Where to obtain: Insurance company.
When we need it: Application to insurance company at time of loan approval and actual bond prior to first disbursement of loan proceeds.
Personal Income/Expense Analysis
This is a listing of all sources of your personal income and personal expenses. The form is in the Business Loan Application.
Purpose: This tells the Lender how much money you will need from your business to pay your personal expenses. It also allows the Lender to track discretionary income.
Where to obtain: The income information should be taken from your personal tax returns, and from your business profit and loss statement. The expense items should be obtained from your personal records such as your personal checkbook, historical personal tax returns and the supporting documents for the tax return.
When we need it: Upon Loan Application.
Personal Tax Returns
Complete tax returns filed with the IRS for you personally. If the return has not been filed by the due date, an extension must be included. Original signatures must appear at the bottom of the first page. Returns for the past three years are required.
Purpose: Required by the Lender/SBA to determine income requirements and to locate possible affiliate companies for eligibility purposes.
Where to obtain: Your CPA, accountant, or self-prepared.
When we need it: Upon Loan Application.
Phase 1/Environmental Risk Assessment Report
This report is an environmental assessment of the collateral which sites any potential environmental risks that may affect the collateral.
Purpose: To give written assurances to the Lender that the collateral is free from environmental problems.
Where to obtain: Lender will contract with a company to prepare report.
When we need it: Prior to Closing.
Plans & Specs
All drawings necessary to a construction project, including the subcontractors' drawings. Written, detailed, drawings which show a contractor how to proceed with construction, whether in new construction or remodeling.
Purpose: To confirm complete scope of project.
Where to obtain: Architect to provide.
When we need it: Before first disbursement of loan proceeds and before construction starts.
Projections
A written estimate of future (expected) revenues, expenses, and profits for your business. For a company already in business, projections should be based on present data or trends recognizable in the business. One year of projections broken out monthly including narrative support will be required.
Purpose: Projections allow the Lender to determine/estimate the future ability of the business to repay debt. Also reflect how well you know your business or prospective business and how much research was done on the project.
Where to obtain: Self-prepared (see Business Loan Application) or you may want to ask your accountant, your area franchise developer, or perhaps a person in this line of business for input.
When we need it: Upon Loan Application.
Q
R
Real Estate Purchase Agreement
A written agreement executed between seller and buyer (borrower) in which the buyer agrees to buy certain real estate and the seller agrees to sell upon terms of the agreement.
Purpose: The document sets forth the purchase price, legal address, and other pertinent information used to prepare closing documents.
Where to obtain: Real estate broker, business broker, attorney, or other third party.
When we need it: Upon Loan Application.
Real Property Hazard Insurance
When real estate is taken as collateral, Lender must be named as mortgagee/loss payee.
Purpose: Lender needs to ensure that collateral is protected against hazards.
Where to obtain: Borrower to provide name, address and phone number of homeowners insurance agent. Borrower will contact Agent to request insurance certificate for Lender.
When we need it: Prior to Closing.
S
Senior Lienholder Mortgage/Deed of Trust (recorded copy)
Any mortgages recorded prior to our position.
Purpose: To see what is actually filed with the public records.
Where to obtain: County clerk's office of property's location.
When we need it: Should be ordered with the title commitment.
Site Analysis
Description of the property to be financed, which includes street address, size of the lot, price of lot, seller name, county, city, zoning, description of adjacent properties (properties on either side), description of properties across the street, names of nearest major highways, and photographs.
Purpose: To tell the Lender where the property will be located, if the neighboring businesses can potentially increase or reduce business; if it is a desirable area, highly visible, traveled, and suitable for the buyer's purpose. It also tells the Lender how much competition is in the local area.
Where to obtain: Borrower to prepare. If a franchise, the franchisor can also prepare a brief site analysis.
When we need it: Immediately, upon application for financing.
Site Visit
The Regional Account Manager must make a site visit to your place of business or proposed place of business prior to closing.
Purpose: To confirm the existence of the business.
Where to obtain: The Regional Account Manager will make an appointment with you at some time during the process to view your place of business.
When we need it: Regional Account Manager will provide to Lender prior to closing.
Standby Promissory Note
A Note held by someone that will be subordinate to the Lender Note.
Purpose: Document file and used to create SBA Form 155, Standby Agreement
Where to obtain: From Note holder.
When we need it: One Week Prior to Closing.
Stock Certificates
Issued to stockholders of the corporation.
Purpose: Identify all the stockholders of the corporation.
Where to obtain: Corporate book provided by the Secretary of State.
When we need it: One Week Prior to Closing.
T
Tri-Party Agreement
An agreement that makes the Interim Construction Lender, the Permanent Lender and the borrower aware of the terms and conditions of loan.
Purpose: To confirm commitment between the Interim Construction Lender, the Permanent Lender and the borrower to the completion of the loan project.
Where to obtain: Interim or Permanent Lender to provide in triplicate to all parties for execution.
When we need it: Before Construction Starts.
U
UCC (Uniform Commercial Code)
A code (law) which regulates the transfer of personal property and taking personal property as collateral.
Purpose: To provide notice of Lender's interest in the personal property collateral such as furniture, fixtures, equipment, inventory, accounts receivable.
Where to obtain: Lender to provide to borrower for execution. Upon receipt from borrower, Lender to file with the county or the State.
When we need it: With SBA Submission Package.
UFOC Uniform Franchise Offering Circular
All franchises must issue a UFOC which outlines pertinent information regarding the franchise concept.
Purpose: Lender is required by the SBA to review the UFOC.
Where to obtain: The franchisor must provide you with a copy.
When we need it: Prior to Credit Approval.
Utility Service Commitments
Commitment from a Utility Company, usually in the form of a letter, agreeing to provide services such as gas and electric to a new location.
Purpose: To assure Lender that utilities are available to the site.
Where to obtain: It is the responsibility of the Contractor or Borrower to obtain from the Utility Company.