requirements for SBA loans

Transcription

1 requirements for SBA loans Preliminary Information Business Credit Application applicant may provide same information in a different format Tax Returns the following entities must include all schedules for the last three years: Applicant Other business owners (of 20 percent or more) Business Related entities or affiliated businesses that affect personal or business cash flow Interim Financials current business year and quarter Income Statement (profit and loss) Balance Sheet Financial Projections 12-month projected income statement with assumptions Credit Information Authorization completed by applicant and owners (of 20 percent or more) Personal Financial Statement include real estate schedules for applicant and owners (of 20 percent or more) Business Applicant Declarations signed copies for applicant and owners (of 20 percent or more) Business Debt Schedule date should match the Balance Sheet Business Description Management-Owner Background completed by each owner (of 20 percent or more) and key managers Commercial Real Estate Loans Purchase Agreement Preliminary Title Report, if available Real Estate Debt Refinance requires the following documentation: Original purchase date and amount paid Cost of subsequent improvements, if applicable Copies of all notes to be refinanced Note: Additional information is required for Construction Loans. Contact your loan officer. Additional Documentation Your loan officer may ask you to provide additional documents from the list below to underwrite and/or fund your loan. Accounts Receivable and Accounts Payable Agings dates should match the Balance Sheet Franchise Agreement and Circular Business License and/or Permits Environmental Questionnaire Request for Tax Transcripts (IRS Form 4506-T) signed by authorized individuals Entity Formation Documents (Corporations, LLC s, Partnerships, Trusts, etc.) Bids and/or Purchase Orders for inventory, furniture, fixtures and equipment Lease Agreement(s) provide copies as applicable Ground Lease(s) if leasehold Hazard Insurance Requirements for all collateral securing the loan including fire, liability and flood insurance Proforma Balance Sheet and Income Statement Certificate of Corporate Secretary SBA Preferred Lender Program (PLP) Sterling Bank is proud to now be Umpqua Bank. POD_17 12/2012

2 BUSINESS CREDIT APPLICATION A. General Information Business name (Applicant): Business phone number: Physical street address including city, state and ZIP (no P.O. boxes): Additional address information (mailing address or web site): address: Nature of business, product or service: Date established: How long under current management: Number of employees: Tax ID number: Fiscal year end: Gross annual business revenue: Annual debt service: B. Credit Request Total amount requested: Use of proceeds: $ Community development? Affordable housing? Non-profit community services? Yes* No Designated for economic development or neighborhood revitalization? *If yes, forward a copy of this application to the CRA Dept: 935, for review. Specify Credit Request Type and Amount: Line of Credit: $ Increase existing line? Yes* No *Existing line: $ Link for Overdraft Protection? Account number: Source of income for repayment: Term Loan: $ Number of years for repayment: Other: Collateral offered (provide address for real estate property): Basis for Value: Appraisal Cost Tax Assessed Book Value Other: Insurance agent and phone number: Secondary source: Real Estate Loan: $ Owner occupied Non-owner or investment real estate Purchase Refinance Repayment structure requested: Monthly Quarterly Annually Other: Beginning on the day of the month of in the year C. Business Organization Sole Proprietorship General Partnership S Corporation Non-Profit State organized Limited Liability Company Limited Partnership C Corporation Other: Principals (list additional principals with 20% ownership or more on separate sheet) 1. Name, title and position: Percent of ownership: % Home street address including city, state and ZIP (no P.O. boxes): Social Security number: Home phone number: Driver s license or government photo ID: State issued: Date of issuance: Expiration date: Date of birth: 2. Name, title and position: Percent of ownership: % Home street address including city, state and ZIP (no P.O. boxes): Social Security number: Home phone number: Driver s license or government photo ID: State issued: Date of issuance: Expiration date: Date of birth: 3. Name, title and position: Percent of ownership: % Home street address including city, state and ZIP (no P.O. boxes): Social Security number: Home phone number: Driver s license or government photo ID: State issued: Date of issuance: Expiration date: Date of birth: CL127 (Rev. 10/13) Page 1 of 5

3 BUSINESS CREDIT APPLICATION D. Complete for Small Business Lending Loan Requests up to $250,000 and for Each Principal with 20% Ownership or More Principal s name: Employer: Length of time (years): Employer phone: Previous employer (if less than two years): Length of time (years): Employer phone: Total years experience in same line of business: address: Gross annual income: $ Do you: Own your home Rent your home Other: Rent or mortgage: $ / month Assets* Value Individual (I) or Joint (J) Liabilities Balance or Amount Owed Monthly Payment Individual (I) or Joint (J) Cash in Umpqua: $ I J Taxes payable: $ $ I J Cash in other banks: Name of institution(s): Checking Other Savings Marketable securities owned (publicly traded)*: $ I J Alimony, child support or other debt: $ I J Revolving credit / Credit cards: $ $ I J $ $ I J IRA, Keogh or Pension: $ I J $ $ I J Automobiles: $ I J Installment notes $ $ I J $ I J payable: $ $ I J $ I J $ $ I J Real estate owned: Mortgages: I J Primary residence: $ I J Primary residence: $ $ Other improved real Other improved real I J estate: $ I J estate: $ $ Unimproved real estate: $ I J Unimproved real estate: $ $ Other assets (detail): $ I J Other liabilities (detail): $ $ I J $ I J $ $ I J I J TOTAL ASSETS (A) $ TOTAL LIABILITIES (B) $ Total monthly payments $ NET WORTH (A-B) $ *Exclude value of, and notes receivable from, the applicant. E. Miscellaneous Information 1. Is the applicant an endorser, guarantor or co maker for obligations (including any lease obligation, e.g. vehicle, equipment, business location) not listed on financial statements submitted? 2. Is the applicant party to any claim or lawsuit? 3. Have you and/or the applicant ever filed for bankruptcy? CHAPTER: FILING DATE:. 4. Does the applicant s business activity involve the generation, use, transportation, storage or disposal of any hazardous material? 5. Does the applicant owe any taxes that are past due? AMOUNT: OWED TO:. 6. Are any assets pledged or mortgaged other than stated on business and personal financial statements submitted? Yes No CL127 (Rev. 10/13) Page 2 of 5

4 BUSINESS CREDIT APPLICATION RIGHT TO REQUEST SPECIFIC REASONS: If this application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, contact us at Commercial Loan Servicing, P.O. Box 2131, Spokane, WA 99201, within 60 days from the date you are notified of our decision. We will send you a written statement of reasons for the denial within 30 days of receiving your request for the statement. The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract), because all or part of the applicant s income derives from any public assistance program or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law is the FDIC Consumer Response Center, 1100 Walnut Street, Box #11, Kansas City, MO RIGHT TO RECEIVE A COPY OF APPRAISAL(S): We may order an appraisal to determine your 1-4 family property value and may charge you for this appraisal. We will promptly give you a copy of any approved appraisal, even if your loan does not close. You can pay for an additional appraisal for your own use at your own cost. REPORTING INFORMATION TO CREDIT BUREAUS: Lender may report information about your account to credit bureaus. Late payments, missed payments or other defaults on your account may be reflected in your credit report. CALIFORNIA-SPECIFIC PROVISIONS: The following provisions apply to California residents only: In accordance with California Civil Code (b), which requires that a lender provide this disclosure to a borrower, you are hereby notified that Civil Code (a) states that no lender shall require a borrower, as a condition of receiving or maintaining a loan secured by real property, to provide hazard insurance coverage against risks to the improvements on that real property in an amount exceeding the replacement value of the improvements on the property. You also authorize Lender to obtain your residence address from the Department of Motor Vehicles and waive the confidentiality requirements of California Vehicle Code ORAL AGREEMENTS: ARIZONA: Under Arizona law, a contract, promise, undertaking or commitment to loan money or to grant or extend credit, or contract, promise, undertaking or commitment to extend, renew or modify a loan or other extension of credit involving both an amount greater than two hundred fifty thousand dollars ($250,000) and not made or extended primarily for personal, family or household purposes, must be in writing and signed by the party to be charged to be enforceable. CALIFORNIA: Under California law, a contract, promise or undertaking to loan money or to grant or extend credit, in an amount greater than one hundred thousand dollars ($100,000), not primarily for personal, family or household purposes, made by a person engaged in the business of lending or arranging for the lending of money or extending credit, is invalid unless in writing and subscribed by the party to be charged. IDAHO: Under Idaho law, a promise or commitment to lend money or to grant or extend credit in an original principal amount of fifty thousand dollars ($50,000) or more, made by a person or entity engaged in the business of lending money or extending credit must be in writing and subscribed by the party to be enforceable. MONTANA: Under Montana law, a promise or commitment to lend money or extend credit, to alter, amend, renew, extend or otherwise modify an existing promise, commitment, or agreement to lend money or extend credit, or to make a financial accommodation for a loan in excess of one hundred thousand dollars ($100,000), extended primarily for commercial or business purposes must be in writing and signed by a regulated lender to be enforceable. NEVADA: Under Nevada law, a promise or commitment to loan money or to grant or extend credit in an original principal amount of at least one hundred thousand dollars ($100,000), made by a person engaged in the business of lending money or extending credit, must be in writing and subscribed by the person to be charged to be enforceable. OREGON: Under Oregon law, most agreements, promises, and commitments made by Lenders concerning loans and other credit extensions, which are not for personal, family or household purposes or secured solely by the borrower s residence must be in writing, express consideration and be signed by Lender to be enforceable. UTAH: Under Utah law, an agreement to lend, delay, or otherwise modify an obligation to repay money, goods, or things in action, otherwise extend credit, or make any other financial accommodation must be in writing and signed by the party to be charged to be enforceable. This written agreement is a final expression of the agreement between the creditor and debtor and may not be contradicted by evidence of any alleged oral agreement. WASHINGTON: Under Washington law, oral agreements or oral commitments to loan money, extend credit or to forbear from enforcing repayment of a debt are not enforceable. IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. What this means for you: when you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver s license or other identifying documents. CL127 (Rev. 10/13) Page 3 of 5

5 BUSINESS CREDIT APPLICATION STATEMENTS BY APPLICANT AND PRINCIPAL(S) (as applicable): GENERAL: I certify that the information provided on and with this Business Credit Application (Application), including any financial statements, are complete and correct and that I am authorized to execute this Application on behalf of the Applicant. I authorize Umpqua Bank and its affiliates (collectively, Lender) to obtain balance and payoff information on all accounts requiring payoff as a condition of approving this Application. I understand that Lender may check my credit record(s) and any statements made by me. I give permission to all my creditors to give Lender any information it needs to make a credit granting decision. I further authorize Lender to provide credit reporting agencies and other creditors information relating to any credit Lender might grant pursuant to this Application. I agree to promptly notify Lender of any material changes that would affect the accuracy of these statements. All information is as of this date unless otherwise stated. I authorize Lender to cause such UCC financing statements to be filed in such form and in such jurisdictions and encumbering such assets as Lender or its counsel deem appropriate in their sole and absolute discretion. AUTHORIZATION TO OBTAIN CREDIT REPORT: I authorize Lender to obtain a copy of my credit report in connection with this request for credit, and any modifications, renewals or extensions of such credit. I acknowledge that Lender shall use the credit report in connection with a credit transaction requested hereunder, and that Lender has a legitimate business need for the information. I acknowledge that this authorization is continuing in nature, and that Lender may obtain updated or additional credit reports at any time in connection with the renewal, extension or other modification of any loan or other credit accommodation related to this Application. I further direct the credit reporting agency to which Lender delivers a copy of this authorization to furnish the credit report to Lender. By signing below, I declare that I have read and understand the above statements. This is an application for business credit submitted on behalf of the entity identified in Section A of this application form. (If the individual owners of the business intend to personally guaranty the loan, include guarantor information in Section C above. Authorized signer to sign below). I am applying for business credit in my individual name and: I am relying on my own income and assets I am relying on my own income and assets and the income and/or assets owned jointly by me with another person or by another source identified as follows (list below or on a separate sheet if necessary): We are applying for joint business credit. The names of the joint applicants are as follows (list below or on a separate sheet if necessary, coapplicants to sign below): APPLICANT OR AUTHORIZED SIGNER SIGNATURE DATE CO-APPLICANT SIGNATURE* DATE TITLE CO-APPLICANT SIGNATURE* DATE CO-APPLICANT SIGNATURE* DATE CO-APPLICANT SIGNATURE* DATE CO-APPLICANT SIGNATURE* *The spouse of an applicant or co-applicant need not sign unless he or she intends to be a co-applicant. For Bank Use Only Banker Must Complete Prior to Submitting Application Lender: Branch name and number: Date received: Automatic payments? No Yes Umpqua Bank checking account number: Employee ID number: Application taken: In person By phone By mail or fax By third party New customer or existing customer less than one year? No Yes Verify ID Loan secured by land or improved real estate? Yes No If yes, order Flood Determination immediately HMDA Is application for a dwelling-secured loan to purchase, refinance or improve a dwelling 1, or improve the real property on which a dwelling is located? No Yes GMI If applicant is a natural person, attach completed Government Monitoring Information sheet (S0767) Yes No N/A Line of Credit 1 Dwelling means a residential structure, whether or not attached to real property, and includes principal residences, vacation or second homes, rental properties, mobile and manufactured homes, multifamily structures (such as apartment buildings), condominiums and cooperative units. DATE CL127 (Rev. 10/13) Page 4 of 5

6 BUSINESS CREDIT APPLICATION Document Checklist for Submission to Small Business Lending Verify for All Small Business Lending Applications Organization documents, business license and proof of insurance can be obtained prior to ordering documents: Signed application. Completed Lender Summary (BF001). Verification aggregate commercial debt exposure is less than $250,000. Organizational Documents Not required at time of application; advise clients to provide these documents prior to closing: Sole Proprietor: Corporation: Limited Liability Co.: Partnership: Business License Articles of Incorporation Articles of Organization Partnership Agreement Certificate of Trade Name Bylaws Operating Agreement Requirements for Applications up to $250,000 Verify business in operation 24 months or more. Federal tax returns for previous two years with all supporting schedules. Scan each year individually and attach to . Completed section D (dated within the last three months) for all owners and/or guarantors. Previous two years personal income tax returns (three years for Sole Proprietorships and Limited Liability Companies) for all owners and/or principals with supporting schedules and K-1s. Scan each year individually and attach to . CL127 (Rev. 10/13) Page 5 of 5

7 Applicant or Guarantor Information CREDIT INFORMATION AUTHORIZATION AND DECLARATIONS (Individual Applicants/Guarantors Only) Enter legal name as it appears on all loan documents. Include first, middle and last name. Individual name: Date of birth: Social Security number: Spouse or domestic partner: Spouse date of birth: Social Security number: Home address: City: State: ZIP: Home phone number: Instructions for married applicants and partners registered under California Domestic Partnership Law Your Financial Statement/Credit Application should provide credit information relating to your spouse or partner unless you are separated and your separated spouse or partner is not applying for the loan as well. Unless you indicate otherwise, the Bank will assume: (1) All property listed is community property, and (2) All debts listed for you, your spouse or your partner are community obligations. Individual, Joint or Guarantor Credit Application You are providing credit information for the purpose of obtaining or guaranteeing a loan. You understand that you may apply for this credit in your name alone or with someone else regardless of your marital status. You are applying: In your name alone (Initial here) With your spouse or California registered domestic partner (Initial here) (If you are a California registered domestic partner, answer the rest of the questions as if you were married.) Your name along with whose separate financial statement is being provided (Initial here) Your Marital Status Answer only if this financial statement is provided in connection with secured credit or if you live in a community property state, such as California, Washington, Nevada or Arizona. Married Separated (Initial here) (Initial here) Unmarried (includes single, divorced, widowed) (Initial here) Authorization The Bank is authorized to make inquiries as necessary to verify the accuracy of the credit information you have provided and to determine your creditworthiness at any time for any reason related to this credit transaction. The Bank may retain this information and may seek credit information about you or your spouse or registered domestic partner by obtaining a consumer credit report or otherwise. You understand that from time to time the Bank may receive information and answer questions and requests about you from others (including, but not limited to loan brokers, SBA and their agents) seeking credit experience information and credit documentation about you and your relationships with the Bank. This may include sharing this information within the Bank. SBA032 (Rev. 11/13) Page 1 of 2

8 CREDIT INFORMATION AUTHORIZATION AND DECLARATIONS (Individual Applicants/Guarantors Only) Acknowledgement You have read, understood and agree that the Bank may rely on this Authorization. You acknowledge that commercial real estate and SBA loan approvals will be in writing subject to terms set forth in a commitment letter. SBA loans are subject to authorization from the Small Business Administration. Declarations Please answer the following questions for yourself and your spouse or registered domestic partner: YES NO 1. Are there any outstanding judgments against you? 2. Have you been declared bankrupt within the past seven years? 3. Have you had property foreclosed upon or given title or deed in lieu thereof in the last seven years? 4. Are you a party to a law suit? 5. Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment? (This would include such loans as home mortgage loans, SBA loans, home improvements loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation bond or loan guarantee. (If yes, provide details, including date, name and address of Lender, FHA or VA case number, if any, and reasons for the action.) 6. Are you presently delinquent or in default on any Federal debt or any other loan, mortgage financial obligation, bond or loan guarantee? (If yes, give details as described in the preceding question.) 7. Are you obligated to pay alimony, child support or separate maintenance? 8. If this is a loan to purchase or refinance real estate, is any part of the down payment borrowed? 9. Are you a co-maker or endorser on a note? 10. Are you a U.S. citizen? 11. Are you a resident alien? If you answer yes to any of these questions, please provide details below (attach separate sheet(s) if necessary): Signatures APPLICANT SIGNATURE DATE BORROWING SPOUSE OR DOMESTIC PARTNER SIGNATURE (only if applying jointly) DATE SBA032 (Rev. 11/13) Page 2 of 2

9 BUSINESS APPLICANT DECLARATIONS Type of entity: General Partnership Limited Partnership LLC Corporation LLP Legal name of entity: Declarations If you answer Yes to any of the questions below, please attach a separate sheet with details for explanation. a. Are there any outstanding judgments against you? Borrower Co-Borrower Yes No Yes No b. Have you been declared bankrupt within the past seven years? c. Have you had property foreclosed upon or given title or deed in lieu thereof in the last seven years? d. Are you a party to a lawsuit? e. Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment? If Yes, provide details, including date, name, and address of Lender, FHA or VA case number, if any, and reasons for the action. (This includes home mortgage loans, Small Business Administration loans, home improvement loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation, bond, or loan guarantee.) f. Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond or loan guarantee? If Yes, give details as described in the preceding question. g. Is any part of the down payment borrowed? Acknowledgement and Agreement Each of the undersigned specifically represents to Umpqua Bank* (Lender) and to Lender s actual potential agents, brokers, processors, attorneys, insurers, service persons, successors and assigns that the information provided is true and correct as of the date set forth. The undersigned applies for the loan indicated in this application to be secured by real property and hereby agrees and acknowledges that the property will not be used for any illegal or restricted purpose, and that all statements made in this application, and all attachments, are true and made for the purpose of obtaining the loan. Verification may be from any source named in this application and/or attachments. I/We fully understand that it is a federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section SIGNATURE TITLE DATE SIGNATURE TITLE DATE SIGNATURE TITLE DATE SIGNATURE TITLE DATE SBA013 (Rev. 4/12)

10 BUSINESS DEBT SCHEDULE Complete the following information on all installment debts, contracts, notes and mortgages payable. Indicate items to be paid by loan proceeds with an asterisk (*) and give reason for payment. Total present balance and date must match latest Interim Balance Sheet submitted. Do not include accounts payable or accrued liabilities. Creditor Name and Address Original Date Original Amount Present Balance Interest Rate Monthly Payment Maturity Date Collateral/ Security Total Present Balance $ Total must match balance shown on Interim Balance Sheet COMPANY NAME SIGNATURE DATE Same date as Interim Balance Sheet SBA015 (Rev. 4/12)

11 BUSINESS DESCRIPTION We have identified key items we need to know about your business and listed them below. If you have a more in-depth business plan already completed, or if you require more space to adequately answer all these questions, you may attach additional pages or a separate business plan with your application in lieu of this form. Type of business including products and services offered. Complete history of business including start-up dates, analysis of industry to include customer base, trends, competition and the seasonality of the business, if applicable. Also discuss future plans for growth or expansion, if applicable. General location description including general area description, access and visibility. General description of the actual business premise and primary collateral. This must include the total amount of square footage available and the amount occupied by your business. How will this loan benefit your business? SBA014 (Rev. 4/12)

12 MANAGEMENT OWNER BACKGROUND To be completed in full by each officer, director, key employee or owner of 20 percent or more of the company. If an item is not applicable, please indicate with N/A. Personal Information First name Middle Maiden (if applicable) Last Place of birth Date of birth Social Security number address Marital Status Spouse s name Middle Last Spouse s Social Security number U.S. Citizen Yes No If No, give Alien Registration number Home address Home phone Business phone City State ZIP Resided since (month/year) Most recent past address Resided from (month/year) City State ZIP Until (month/year) Employment History List chronologically, beginning with current employment. You may attach a resume containing work experience and education history. Position/Title Employed from (month/year) Until (month/year) Company name Type of business Address City State ZIP Position/Title Employed from (month/year) Until (month/year) Company name Type of business Address City State ZIP Position/Title Employed from (month/year) Until (month/year) Company name Type of business Address City State ZIP SBA016 (Rev. 4/12) Page 1 of 2

13 MANAGEMENT OWNER BACKGROUND Education History High School College/University Technical School Graduate School Other education Name of Institution City, State Degree/Certificate Year Graduated Military Service List branch, years served, rank achieved and any special training, commendations or awards. Legal History Yes No Have you or your business or any business with which you have been associated ever been in bankruptcy or insolvency proceedings? Details: Yes No Are you or your business involved in any pending lawsuits? Details: Yes No Are you or your business presently under indictment, or on parole or probation? Details: Yes No Have you ever been charged with or arrested for any criminal offense other than a minor vehicle violation? Details: Yes No Have you ever been convicted of any criminal offense other than a minor motor vehicle violation? Details: Yes No Do you presently have an SBA loan? If so, who is the lender? Are your payments current? Details: Yes No Are you more than 60 days delinquent under the terms of any (a) administrative order, (b) court order, or (c) repayment agreement that requires payment of child support? Details: Yes No Are any of your assets held in a trust? Details: Signature I the undersigned declare under penalty of perjury that the above statements are true and correct. SIGNATURE PRINTED NAME DATE SBA016 (Rev. 4/12) Page 2 of 2

14 LIMITED LIABILITY COMPANY (LLC) INFORMATION Name of LLC: Tax ID: Authorized Signers Indicate authorized signers below: NAME TITLE NAME TITLE Managers List the names of all managers below: Members List the names of all members below: Owners and Investors List the names of all owners and investors below: Percent of ownership: SBA017 (Rev. 4/12)

15 CERTIFICATE OF CORPORATE SECRETARY I certify that I am the secretary of and that the following persons hold positions in this corporation and/or own shares in this corporation in the amount and form designated. Tax ID: Authorized Signers Indicate authorized signers below: NAME TITLE NAME TITLE Directors List the names of all directors below: Officers List the names of all officers by title below: President: Vice President: Secretary: Treasurer: Shareholders List the names of all shareholders below: Number of shares: Dollar value of outstanding shares: $ $ $ $ $ $ SECRETARY SIGNATURE PRINTED NAME DATE SBA018 (Rev. 4/12)

16 NOTICE OF RIGHT TO EVALUATION REPORT Important notice concerning your right to receive a copy of the evaluation report we obtain in connection with your loan application. Right to Receive a Copy of Appraisal(s): We may order an appraisal to determine your property s value and may charge you for this appraisal. We will promptly give you a copy of any approved appraisal, even if your loan does not close. You can pay for an additional appraisal for your own use at your own cost. Your right to receive a copy of the evaluation report requires that you reimburse us for the expense we incurred in obtaining and copying the report*. We will advise you of the cost when we receive your request. Any evaluation we obtain in connection with your loan application will be for the purpose of assisting us in determining whether to extend credit to be secured by the appraised property, and if so, upon what terms. Depending upon the amount and nature of the loan you have requested and other factors, the evaluation may be conducted by a certified or licensed appraiser. The person performing the appraisal may be our employee or an independent contractor. The appraisal report should not be relied upon by you or anyone else to determine the value, description or condition of the property. If you want professional assistance in determining those matters, you should retain your own appraiser or other advisor. An evaluation is not an appraisal report as defined by Federal Banking Regulations. This evaluation is performed by the Bank solely for its own internal use in underwriting a loan request. No reliance should be placed upon this evaluation a representation of the value of the subject real estate. Use of this evaluation for any purpose other than its intended use renders this evaluation invalid. The producers of this evaluation, the Bank and its agents assume no responsibility for the misuse of this evaluation and make no representation regarding the accuracy of the information used therein or of the conclusions obtained. California property owners only: If your application relates to nonresidential real property or to real property containing more than four dwelling units, California law requires that we advise you that this right only extends to the evaluation report(s) we have obtained from a licensed or certified appraiser for the purpose of evaluating your pending request for an extension of credit. *For loans secured by residential property in California, release of the appraisal may not be conditioned upon payment of the cost of duplicating the appraisal. SBA019 (Rev.11/13)