Application Package Completeness Checklist

Transcription

1 Application Package Completeness Checklist All Businesses Business Loan Application dated within the last 30 days Schedule of Business Debt for each business entity participating in the loan Interim Business Income Statements and Balance Sheets current within 60 days (internally prepared is acceptable) Accounts Receivable Aging, Accounts Payable Aging if applicable Personal Financial Statement for each principal/owner listed on the application (not more than 60 days old) Personal Tax Returns for the last three fiscal years, including all schedules and K-1 s for each owner, general partner, and/or principal officer who has ownership of 20% or more. IRS 4506 for borrowing entity or each principal/owner if sole proprietor on the application Certification and Authorization Trust Agreement if the borrower, owner, or guarantor is a trust or holds assets in a trust Loan Application Disclosures For Sole Proprietors Business Financial Statements from the last 3 years For Corporations, LLCs, or Partnerships - or - CPA Prepared Audited or Reviewed Financial Statements for the last three fiscal years, including all schedules Business Tax Returns for the last three fiscal years, including all schedules and K-1s. If Business Tax Returns are prepared using the cash basis method of accounting, then you must also submit a company prepared accrual fiscal year-end Business Financial Statement from the last three years, including income statement and balance sheet. Entity Documents Sole Proprietors Corporation Partnership LLCs Fictitious Name Statement and Business License Articles of Incorporation, Filed Statement of Information or Corporate Meeting Minutes, Fictitious Business Name Statement and Business License Partnership Agreement and Certificate of Limited Partnership (if applicable) Articles of Organization, Operating Agreement Note: Tax returns must be signed by owner or stamped by preparer, including preparer s address and tax ID on standard IRS forms. SBA Business Loan Application Package

2 Additional Application Requirements Real Estate Loans Equity Addendum Environmental Questionnaire if commercial property Phase I (if available) Most Recent Appraisal (if available) Insurance Coverage Form (name and contact information of insurance agent) Income Property: copies of all leases, projected rental income/expenses, and if held in separate partnership or corporation, three years of tax returns Purchase Money Transactions: copy of purchase agreement and preliminary title report if escrow is already open Second Mortgages: copy of the promissory note and deed of trust on the first mortgage and most recent mortgage statement Equipment Loans Used Equipment: copy of the signed purchase agreement between buyer and seller (an appraisal may be required) New Equipment: copy of the invoice or purchase order Cash Secured Lines and Loans** Deposit secured loans: account number, date account was opened, maturity date, interest rate, and account balance **A copy of the customer s account statement should provide this information. SBA 7(a) Loans SBA form 4 and 4A (must be completed in their entirely) SBA Form 912 SBA Form 1919 Business History Management Resume Business Plan and Projections of Monthly Revenues & Expenses (required for business purchases and businesses less than one year old) Copy of Life Insurance Policy (if applicable) Copy of Lease Agreement SBA 504 Loans Additional information for the CDC will be required SBA Business Loan Application Package

3 Business Loan Application Company Information Business Legal Name: Phone: Fax: Company (or DBA) Name: Address: Date Business Established: Owner Since: Website Address: Location Address: Mailing Address: Street City State Zip Street City State Zip Federal Tax ID #: No. of Employees: No. of Business Locations: State of Incorporation: Ownership Type: Sole Prop Partnership Corporation Other Describe product/service: Owner Information Name: % Ownership: Title: Name: % Ownership: Title: Name: % Ownership: Title: Name: % Ownership: Title: Credit Request Information Loan Type: Amount: Please provide a brief explanation your planned use of the proceeds: Line of Credit $ Term Loan $ Real Estate Loan $ Business Information Has the borrower used or done business under any other names? Y N Is there a Franchise Agreement? (If so, please attach.) Y N Does the borrower hold any assets in a trust? Y N Is the business an endorser, guarantor, or co-maker for obligations not listed on its financial statements? Y N Is the business a party to any claim or lawsuit? Y N Has the business ever declared bankruptcy? Y N Does the borrower use hazardous substances in the normal course of business? Y N Has the borrower ever failed to comply with any laws, rules, or regulations relating to hazardous substances? Y N Is the applicant (or any officer, Principal, or Partner of the applicant) currently on the Board of Directors, a Principal Shareholder, or an executive officer of Bank of Southern California, N.A., other Bank, Thrift, or S&L? Y N If YES to any, please describe: SBA Business Loan Application Package

4 Business Banking Accounts Bank Name: Account No.: Checking Savings Balance: $ Bank Name: Account No.: Checking Savings Balance: $ Bank Name: Account No.: Checking Savings Balance: $ Would you like to move any of your deposit accounts to Bank of Southern California, N.A.? Yes No About Your Business How are your products or services sold? Walk in Internal Sales Force Direct Mail Telemarketing Manufacturer s Rep Other: Is the business/industry subject to regulatory agencies? No Yes, please list: About Your Sales Projected sales for this year? $ How many customers? What is the geographic market area where you do business? Are the sales seasonal? No Yes, please explain: Do any customers represent more than 10% of sales? No Yes, please explain: What are the selling terms? Cash N/10 N/30 N/60 How many days to collect? What are the purchasing terms? Cash N/10 N/30 N/60 How many days to clear? Any government sales (local, state, federal)? No Yes, percent: Any international sales? No Yes, percent: Any overseas suppliers? No Yes Who are your three top competitors? About Your Management Does the owner actively manage the business? No Yes Full Time Part time % Prior to owning the business, how many years of industry experience does the owner have? Who would manage the business in the owner s absence? (Insurance, family, succession) May we contact your accountant? Yes No Name: Phone Number: About Your Facilities Is the business property Owned Leased Square Footage: If owned, what was the cost? $ What is the present market value? If leased, what is the lease expiration date? What type of equipment does the Company use? SBA Business Loan Application Package

5 Schedule of Business Debt Company Name: As of Date: Creditor Loan Type Collateral Note Date Maturity Date Original Amount Current Balance Balance of Recent FYE* Interest Rate Monthly Payment Annual Payment $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTAL $ $ * Total should reflect all loans, lines, leases, and other contractual obligations as presented in the most recent financial statement provided. SBA Business Loan Application Package

6 Miscellaneous Information Automatic Payment Yes, set up automatic payment to my new Bank of Southern California, N.A. business loan or line of credit from my Bank of Southern California, N.A. business checking account number listed below. Account Number: Overdraft Protection Yes, set up overdraft protection from my Bank of Southern California, N.A. line of credit and cover overdrafts by advancing funds to my business checking account number listed below. Account Number: Agreement The signer(s) certifies that he/she is authorized to execute this Application for the business named above ( Applicant ), and that all information and documents submitted, including federal income tax returns (if applicable), are true, correct, and complete. The signer(s) authorizes Bank of Southern California, N.A. ( Bank ) to obtain customer and/or business reports from others, including (if applicable), the Internal Revenue Service or the Franchise Tax Board, in their names as individuals at any time. The signer(s) further agrees to notify the Bank promptly of any material change in any such information. The signer(s) further authorizes the Bank to obtain balance and payoff information on all accounts requiring payoff as a condition of granting credit. If the Applicant is a legal entity, all owners must sign and include their title. The signer(s) understands and agrees that this application is subject to final credit approval and that additional information may be required. California Residents: Applicant, if an individual and married, may apply for a separate account. The signer(s) acknowledge that they have received the following application disclosures: Adverse Action Notice, Appraisal Availability Notice, Hazard Insurance Notice. The Bank is authorized to make any investigation of the credit status of applicants and any co-applicant either directly or through any agency employed by the Bank. 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 concerning Bank of Southern California, N.A. is the District Office of the Comptroller of the Currency, 1301 McKinney Avenue, Suite 3710, Houston, TX If your application for business credit is denied, you have the right to a written statement of the specific reasons for denial. To obtain this statement, please write Bank of Southern California, N.A., Attn: Loan Department, El Camino Real, Suite 100, San Diego, CA 92130, 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. 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 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 Signature Title Date Signature Title Date Signature Title Date Signature Title Date

7 Real Estate Addendum Company Information Business Legal Name: Phone: Fax: Business Property Type Property Address: Street City State Zip Building Size (sq. ft.): Site Size (sq. ft.): # of Stories: # of Units: Year Built: Year Renovated: % Owner Occupied: Type of Construction: Occupation Type: Industrial or Warehouse Building Office Building Retail Other: Residential Property Type Property Address: Street City State Zip Building Size (sq. ft.): Site Size (sq. ft.): # of Stories: # of Units: Year Building Built: Year Renovated: Type of Construction: Occupation Type: Owner Occupied (as principal dwelling) Non-owner occupied (2 nd home, vacation home, etc.) Building Type: Single Family Residence (1-4 units) Multifamily Residence (5+ units) Residential Condo or PUD Insurance Information Agent Name: Phone Number: Environmental Risk Disclosure Are there now or have there ever been any above or below-ground storage tanks located on the subject property? Y N Are you aware of any toxic/hazardous waste problems, existing or past, with the subject property? Y N Are there any toxic/hazardous materials in use or stored on the subject property? Y N Is the property the subject of environmental litigation, regulatory citations, or enforcement action? Y N To your knowledge, has an environmental-risk study ever been performed on the property? If yes, please submit a copy. Y N Are you aware of any toxic/hazardous waste problems, existing or past, with adjacent or nearby properties? Y N Agreement 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. The amount of replacement or insurable value coverage required by Bank of Southern California, N.A., will be determined upon completion of an appraisal and costing or other evaluation documentation or information for the subject loan. You have the right to receive, upon written request, a copy of any appraisal report, which is prepared in connection with your request for credit. The right to receive the appraisal report is conditioned upon your paying of all appraisal fees (and, for Non-Residential real estate property, all actual costs of duplicating the appraisal report). If you are entitled and wish to receive a copy of the appraisal report, please submit a written request to Bank of Southern California, N.A., Attn: Loan Department, El Camino Real, Suite 100, San Diego, CA Your written request for a copy of the appraisal report must be received by Bank of Southern California, N.A. no later than 90 days after (1) Bank of Southern California, N.A., provides notice of the action taken on your application or a notice of incompleteness or (2) your application has been withdrawn. The undersigned ( Applicant ) certifies that the statements in this Addendum are true, correct, and complete. x Applicant Signature Title Date

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13 CERTIFICATION AND AUTHORIZATION Applicant: Lender: Bank of Southern California, N.A El Camino Real, Suite 100 San Diego, CA To Bank of Southern California, N.A. ("Lender"): CERTIFICATION 1. Applicant (and co-applicant if applicable), has applied for a loan from Lender. In applying for the loan, Applicant provided to Lender various information about Applicant and the requested loan, such as the amount and source of any downpayment, income information, and assets and liabilities. Applicant certifies that all of the information is true and complete. Applicant made no misrepresentations to Lender, nor did Applicant omit any important information. 2. Applicant understands and agrees that Lender may verify any information provided to Lender concerning Applicant's application, including, but without limitation, verifications from financial institutions of the information provided. 3. Applicant fully understands that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements when applying for this loan, as applicable under the provisions of Title 18, United States Code, Section To Whom It May Concern: AUTHORIZATION TO RELEASE INFORMATION 1. Applicant has applied for a loan from Bank of Southern California, N.A. ("Lender"). As part of the application process, Lender, any insurer of the loan and any collateral title insurer may verify information Applicant provided to Lender either before or after the loan is closed. 2. Applicant authorizes you to provide to Lender, to any investor to whom Lender may sell Applicant's loan, and to any insurer of the loan any and all information and documentation that they may request. Such information may include, but is not limited to, income; bank, money market, and similar account balances; credit history; and copies of income tax returns. 3. Lender, any investor that purchases the loan, and any insurer of the loan may address and send this authorization to any person or company named in the loan application. 4. A copy of this authorization may be accepted as an original. 5. Your prompt reply to Bank of Southern California, N.A., to any investor that purchases the loan, and to any insurer of the loan is appreciated. AUTHORIZATION TO FILE FINANCING STATEMENT Applicant hereby authorizes Lender to file the appropriate Financing Statements for the following collateral prior to executing a security agreement, pledge, or control agreement: APPLICANT: X X Applicant Date Co-Applicant Date

14 Loan Application Disclosures Applicant: Retain for Your Records Adverse Action Notice Applicant s Copy 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 concerning Bank of Southern California, N.A. is the District Office of the Comptroller of the Currency, 1301 McKinney Avenue, Suite 3710, Houston, TX If your application for business credit is denied, you have the right to a written statement of the specific reasons for denial. To obtain this statement, please write Bank of Southern California, N.A., Attn: Business Banking, El Camino Real, Suite 100, San Diego, CA or call (858) , 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. Appraisal Availability Notice You have the right to receive, upon written request, a copy of any appraisal report which is prepared in connection with your request for credit. The right to receive the appraisal report is conditioned upon your paying for all appraisal fees (and, for Non-Residential real property, all actual costs of duplicating the appraisal report). If you are entitled and wish to receive a copy of the appraisal report, please submit a written request to Bank of Southern California, N.A., Attn: Business Banking, El Camino Real, Suite 100, San Diego, CA or call (858) Your written request for a copy of the appraisal report must be received by Bank of Southern California, N.A. no later than 90 days after (1) Bank of Southern California, N.A. provides notice of the action taken on your application or a notice of incompleteness or (2) your application has been withdrawn. Hazard Insurance Notice In applying for a loan or credit accommodation that will be secured by real property, as a condition of the loan or credit accommodation, Lender may require you to maintain hazard insurance coverage for the real property. California law provides that Lender cannot require you, as a condition of receiving or maintaining a loan secured by real property, to provide hazard insurance coverage against risks to the property (such as fire and other perils) in an amount exceeding the replacement value of the building or structures attached to the property.

15 Privacy Policy and Notices Required by Law The following is a brief summary of the laws applicable to this solicitation of information. Paperwork Reduction Act (44 U.S.C. Chapter 35) SBA is collecting the information on this form to make a character and credit eligibility decision to fund or deny you a loan or other form of assistance. The information is required in order for SBA to have sufficient information to determine whether to provide you with the requested assistance. The information collected may be checked against criminal history indices of the Federal Bureau of Investigation. Privacy Act We Value and Respect Your Privacy Bank of Southern California, N.A. is committed to safeguarding your financial privacy. We strive to provide you with excellent customer service and make available to you various products and services and other opportunities. We balance that goal with an institutional respect for your financial privacy and a sensitivity to your concerns. To this end, we are committed to the following Privacy Policy. We Collect and Use Information to Improve Our Customer Relationships Bank of Southern California, N.A. collects, retains and uses customer information only when we believe that it would be useful (and allowed by law) in administering our business and providing products, services and other opportunities to our customers. We collect information from a variety of sources, including consumer reporting agencies, information we receive from you on applications or other forms, other financial institutions, from the Internet, and public records. We receive information directly from our customers and in the course of offering and providing products and services to potential and existing customers. We may use information to evaluate existing customer relationships and to establish or make available new ones. We Work to Maintain the Accuracy of Customer Information Bank of Southern California, N.A. has established procedures so that any customer information that we keep and use is accurate, current and complete in accordance with reasonable commercial standards and the requirements of the Federal Fair Credit Reporting Act. We respond promptly to customer concerns about the accuracy of financial information. We Limit Our Employees' Access to Information We authorize our employees to access or use customer information only if they have a business reason to do so. We educate our employees about their responsibility to protect your financial privacy. Our employees are bound by a code of conduct that includes this Privacy Policy. We Protect Customer Information via Established Security Procedures We have appropriate security standards and procedures in place regarding access to customer information. We Restrict the Disclosure of Account Information We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. Personally identifiable customer information shall not be revealed to outside parties for their independent use, except as required by law or when the disclosure is necessary to conduct legitimate banking business under the following circumstances: (1) performance of a customer initiated transaction, (2) in response to a customer requested release of information, (3) disclosures allowed by law for such events as subpoenas or investigations of fraudulent activity, or (4) certain information regarding our own transactions with you that may from time to time be provided to selected firms that work with us to provide you with a broader array of financial products and services. We Safeguard Customer Privacy in Business Relationships with Other Parties From time to time, we may hire others to support us in marketing or delivering our products and services. If we provide personally identifiable customer information to others in the course of these business relationships, we insist that the confidentiality of such information be observed. Changes Bank of Southern California, N.A. s Privacy Policy may change from time to time, so check our website at or your local Bank of Southern California, N.A. office for the most updated copy. This Privacy Policy applies to individuals and we reserve the right, at our discretion, to change, modify, add, and/or remove any part of this Privacy Policy at any time.

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36 Business History (Attach separate page(s) if necessary) Business Name: Nature of Business: Types of Products/Services: Future Plans for Growth and Expansion: How will this loan benefit your company? Will the funding of this loan create new employment opportunities? Yes No If so, state how: Customer Profile: List Key Customers: List Major Competitors: List Major Suppliers: Geographical Sales Area:

37 Management Resume Personal Information Name: Date of Birth: Residence Telephone: SS#: Place of Birth: Business Telephone: Residence Address: Previous Address: Lived there from: To Spouse's Name: SS#: Are you employed by the U.S. Government? Yes No If yes, give agency/position: Are you a U.S. Citizen? Yes No If no, give Alien Registration #: Have you ever been charged with or convicted of any criminal offense other than a misdemeanor involving a motor vehicle violation? Yes No If yes, furnish details in a separate exhibit. Are you involved in any lawsuit at this time or have you ever filed for personal or business Bankruptcy Protection? Yes No If yes, furnish details in a separate exhibit. Education Information College or Technical Training - Name and Location Dates Attended From/To Major Degree/Certificate Military Information Branch From To Honorable Discharge? Rank at Discharge Major assignment/accomplishment Work Information Company Name/Location: From To Title Duties Company Name/Location: From To Title Duties Signature Signature Date

38 Management Resume Personal Information Name: Date of Birth: Residence Telephone: SS#: Place of Birth: Business Telephone: Residence Address: Previous Address: Lived there from: To Spouse's Name: SS#: Are you employed by the U.S. Government? Yes No If yes, give agency/position: Are you a U.S. Citizen? Yes No If no, give Alien Registration #: Have you ever been charged with or convicted of any criminal offense other than a misdemeanor involving a motor vehicle violation? Yes No If yes, furnish details in a separate exhibit. Are you involved in any lawsuit at this time or have you ever filed for personal or business Bankruptcy Protection? Yes No If yes, furnish details in a separate exhibit. Education Information College or Technical Training - Name and Location Dates Attended From/To Major Degree/Certificate Military Information Branch From To Honorable Discharge? Rank at Discharge Major assignment/accomplishment Work Information Company Name/Location: From To Title Duties Company Name/Location: From To Title Duties Signature Signature Date

39 Environmental Questionnaire Instructions: Answer all questions accurately and thoroughly. Attach additional sheets if necessary. Insert n/a for any question which is not applicable. Loan Applicant: Loan Purpose: Current Property Owner(s): Current Property Tenant(s) or Operating Management Agreement(s): Property Location: Property Characteristics and History: Names of all former owners. List all improvements or renovations, additions, etc., in the last ten years. List of previous occupants for as long as you are aware and the typical of business conducted at this location. List your current use of the property. Are there any on-site ground wells on the property? Uses of all adjacent properties. Inventory and Substances List and describe any chemicals or substances that are used on or stored on the property for any reason that could or would be described as hazardous or toxic under any Federal or State Laws or regulations. The following is only a partial list: arsenic, asbestos, hard mercury, gasoline, oil and other petroleum products, pesticides, herbicides, fertilizers, etc. This list does not claim to cover all toxic or hazardous materials. Please note below: None or the following: Are there or have there been any fuel/chemical tanks above ground, underground or stored in drums or mobile containers on the property? If so, please describe. No Yes

40 Has there ever been a toxic soil test or environmental test of any kind on the property? If so, please describe. No Yes Does the existing business produce any air pollution of any kind? If so, please describe. No Yes Do you have any arrangements, contracts, service agreements, etc. with any company to remove any substance from the property? If so, please describe. No Yes Has any governmental agency every listed this property or any adjacent property as having any kind of environmental problem? If so, please describe. No Yes Have there ever been any denials of applications for permits on the property? If so, please describe. No Yes Have you or anyone associated with the property ever been named in any environmental lawsuit? If so, please describe. No Yes Note: You are required to immediately notify Bank of Southern California, N.A. upon the discovery or learning of the existence of any hazardous waste or toxic substance problems (except when life-threatening emergencies first require immediate remedial action in which case prompt reporting after mitigation will suffice). Applicant s and Affiliated Parties Name(s): The undersigned applicant(s) have completed this questionnaire as part of its application for a loan and represents that all questions have been answered truthfully and completely. X Signature of Applicant Date X Signature of Applicant Date