The Four Steps of the Commercial Mortgage Loan process:
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There a four basic steps to getting an SBA Loan with Southwest Funding- The Statewide Group, and we are going to support you every step of the way:
There are four main steps involved in getting a loan.
Step one: apply now! Loan Application
This process starts when you contact your SRML Representative. Typically, this will be your Business Development Officer (BDO). Your BDO will discuss your financing needs and assist you in determining the best SRML product. Your BDO will then provide you with the SRML loan application. Please note, your BDO will also be available to provide assistance to you in completing the application.
During the application process we will also ask you to provide additional information and supporting documentation in order to secure your loan. We will ask you to provide us with:
- Interim financial statements no older than 45 days from application date.
- Copies of your Business Federal Tax Returns for the last three fiscal years.
- If your business is a startup, a business plan or projections for the next two years will be required.
- If you are purchasing real estate or other business assets, we will need a copy of the purchase agreement. If your business is a franchise business, we will need a copy of the Uniform Franchise Offering Circular (UFOC), as well as your signed Franchise Agreement.
- For the refinance of debt, please provide a copy of the note being refinanced.
- Depending on the specifics of your loan, your business and your industry, we may require other information as well.
We will make the process easy for you. Your representative will help you gather the data and answer all your questions.
Step two: Underwriting
An Underwriter will process the information from your application, analyze your business and your loan request, and prepare the loan report that goes to the Credit Committee. During the underwriting process, our Underwriters may need to contact you regarding questions that come up during the loan analysis. The faster you can respond to these requests, the faster your loan will be submitted to Credit Committee for approval.
Step three: Approval and Commitment
Your BDO and your Underwriter will present your loan request to the Credit Committee. Upon approval of your loan, your Underwriter will prepare a Commitment Letter for your review and approval. The Commitment Letter will provide details about the loan amount, interest rate, collateral required, equity required, as well as other important terms and conditions of the loan. Your BDO is available to discuss any aspect of the commitment letter and answer questions you may have. After you have reviewed the letter, you will need to sign and return it, along with the good faith deposit check, to ABL. Your good faith deposit will be used for loan closing expenses such as the appraisal and environmental reports, loan closing attorney's fees, credit reports, and lien searches.
Step four: Loan Closing
Upon receipt of your signed commitment letter and the good faith deposit check, your loan will be assigned to a Loan Packager and Closer.** Your loan will typically close within 45 days* from receipt of the signed commitment letter. If your loan is an SBA request, your Packager will work with you to collect the documents needed for the SBA submission.
The Closer will provide you with a checklist of all the items needed to close your loan, and will work with you to collect these items. The closer will also be available to answer any questions you have about the process and the closing checklist requirements. The faster these checklist requirements can be met, the faster the loan can close.
Once we have all of the items on the closing checklist and the items have been successfully reviewed, the loan closing will be scheduled. The Closer will contact you with the time and place of the closing and discuss any items you may need to bring to the closing. Once all loan documents have been signed at the closing table and reviewed by ABL, your loan proceeds will be immediately disbursed.
*All timelines are estimated, typical timelines based on past ABL transactions. However the actual timeline for your loan will be dependent on several factors, and your BDO can provide you with the most accurate estimate of the timeline for your loan. 72 Hour Credit Decision is from the time we receive your complete loan package. 30-45 Day closing is from the date we receive your signed commitment letter.