CH Capital - Loan Process

8/3/2019 CH Capital - Loan Process

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CH Capital Partners, LLC

SBA 504 Loan Process



TABLE OF CONTENTS

Stage 1 Page 3

Prequalification Documents Needed Page 4

Issue LOI Bank Requirements Page 5-9

Fee Agreement Page 10

Creating CRM Contact Page 11

Stage 2

Pre Qualify Page 12

Creating Client Email in SharePoint Page 13-14

STAGE 3 Loan Approval Page 15 STAGE 4 Loan Closing Page 16

STAGE 5 LOAN FUNDING Page 17



STAGE 1

Meet with Client

Collect Prequalification Documents

BDO Prescreen / Preflight

Issue LOI

Signed Fee Agreement

Create contact in CRM



DOCUMENTS NEEDED

Stage 1 - Loan Application

A01 - CDC Application

A03 - CDC Credit Memorandum

A04 - Eligibility Questionnaire

A06 - Statement of Personal History

A08 - Personal Financial Statement

A09 - Personal Federal Income Tax Return (3 years)

A11 - History of Business

A18 - Projections - 12 Month Income & Expense

A23 - Purchase Agrmnt-Escrow Inst-Ltr to Escrow

A30 - Personal Credit Report & Explanations

Bank Analysis

Bank Balances

Bank Credit Memorandum & Amendments

Business Debt Sched to Reconcile w Interim Financial Statement

Business Development Breakdown

Business Financial Statement

Business Plan

Business Year-End Financial Statements

Certificate of Good Standing

CIP

Compensation Agreement

Construction Cost Breakdown

Current Proposed Lease

Drivers License Copies

Fee Disclosure-Borrowers Sgntr Cert

Interim Financial Statements

New Business Contract Possibilities

Ownership Structure MOD

Photo

Preliminary Title Report

Projections (Annual)

Resume

Tax Lien Release

Tax Return Explanation

Non affiliated business tax returns

* ALL docs should be filed in the stage 1-5

f olders



ISSUE LOI BANK REQUIREMENTS

SBA 504 and 7a

Hanmi Bank (Page 5) - SBA 504 & 7a

Zion Bank (Page 6 & 7) SBA 504

CDC Direct (Page 8) SBA 504

CIT, Community South, ECC and KBS (potentially) the same as

Zions



FIRST LIEN BANK LOI REQUIREMENTS

Preflight with executive summary and 5 key bullet points

Three year tax return on subject

Three year tax return on personal and any other entities

Payment history for two years

Purpose of loan

Business debt schedule

Personal debt schedule

Collateral description

Brief summary about subject transaction and borrower/guarantor

history.

Any issues or risk to the Bank



ZION BANK LOI REQUIREMENTS

Loan Package f or Owner Occupied PropertiesFor all individuals who hold 20% or greater ownership in the holding company/operating company:

___ 1- Personal tax returns for the last three years

___ 2- Personal financial statements including schedule of real estate owned dated within the past 30 days

___ 3- Permission to pull credit (or a copy of a current credit report)

___ 4- Resume or brief personal bio explaining experience

___ 5- Verification of liquid assets (i.e. Bank statements, brokerage account statements)

For the Operating Company and Affiliates:

___ 1- Last three years of tax returns for the holding company, if applicable

___ 2- Last three years of tax returns and financial statements for the operating company and affiliates

___ 3- Interim financial statement for the operating company and affiliates dated within the last 60 days.

Please also provide a YTD financial statement from the same period for the previous year. (Example: 7/30/10 AND a 7/30/09)

___ 4- Debt Schedule for the operating company and holding company that matches the debt listed on the interim balance sheet

___ 5- Business History and Description

Other:

___ 1- Property description including SF, year built, construction material, property type (a copy of an old appraisal is very useful.)

___ 2- Sources and Uses

___ 3- Credit Memo from the referring lender detailing the specifics of the transaction- We basically ask for the same information that you

would put into your own credit write up.

For Refinance Transactions:

___ 1- A copy of the note to be refinanced, along with the most recent loan balance statement.

___ 2- When was the property purchased and what was the purchase price?

For Purchase Transactions:

___ 1- Copy of purchase agreement



ZION BANK LOI REQUIREMENTS

Loan Package f or Investor PropertiesFor all individuals who hold 20% or greater ownership in the real estate:

___ 1- Personal tax returns for the last three years

___ 2- Personal financial statements including schedule of real estate owned dated within the past 30 days

___ 3- Permission to pull credit (or a copy of a current credit report)

___ 4- Resume or brief personal bio explaining experience

___ 5- Verification of liquid assets (i.e. Bank statements, brokerage account statements)

For the property:

___ 1- Rent roll (we need to know at least: tenant name, suite number, lease commence date, lease end date, SF occupied, lease

rate, CAM charges (if applicable)) Vacant space needs to be included.

___ 2- Last three years of tax returns and financial statements for the subject property

___ 3- Interim financial statement for the subject property

___ 4- Copy of existing or proposed leases

___ 5- If any one tenant occupies more than 50% of the space OR is responsible for paying 50% or more of the gross rents, the last

two years of financial statements on that tenant are required.

Other:

___ 1- Property description including SF, year built, construction material, property type (a copy of an old appraisal is very useful. ___ 2- Sources and Uses

___ 3- Credit Memo from the referring bank detailing the specifics of the transaction- We basically ask for the same information

that you would put into your own credit write up.

For Refinance Transactions:

___ 1- A copy of the note to be refinanced, along with the most recent loan balance statement.

___ 2- When was the property purchased and what was the purchase price?

For Purchase Transactions:

___ 1- Copy of purchase agreement



CDC DIRECT LOI REQUIREMENTS

Last 2 year business tax return

YTD business financial statement with corresponding debt

schedule

Last year personal return

Personal financial statement

Purchase agreement or letter of interest to purchase thebuilding

Full package after LOI and Deposit



FEE AGREEMENT

After we have an LOI Issued then we would need to get a

fee agreement together and get have the client sign.(Fee agreement can be found in SharePoint)

Collect the deposit for third party fees



CREATING CLIENT CONTACT - CRM

Be sure to check that the client does not already have

information in CRM

If client is new then add ALL information pertaining to client into CRM

including any spouse and/or children information

After contact has been created

Create the LOAN within CRM be sure you create this through the clients

contact information so that everything is linked properly. ALL loan

information needs to be created as well as the OPPORTUNITY added that

corresponds with the loan



STAGE 2 PRE QUALIFY

Send Out Welcome Package

Create custom email within SharePoint

Or create work space at : http://workspace.ch-

capital.com

Gather Documents

A02 SBA Form 1244

A05 Supplemental

Tax Transcript Request

Upload Information into CRM & SharePoint

(In Stage 1-5 folders)

Send Complete Package to Underwriter



CREATING CUSTOM EMAIL -

SHAREPOINT

To Create Site

Click on Site Actions

Click on New Site

Under Team Site enter in Customer name in the

title box & URL box and click create

Click on the newly created Site & click on libraries in left

column

Click site actions again

Click on New Document Library Then enter loanname

Click yes on ALL options & then click create ( the loan

will then be found in the left column)



CREATING CUSTOM EMAIL -

SHAREPOINT (Cont.)

Click on the new loan doc library that you just created & at the

top of the page in the ribbon youll see library tools

Click on Library within the Library Tools ribbon

Within the ribbon youll find a button labeled Library Settings

Next you want to click on Incoming Email Settings

Click yes for allow document library to receive email &

create a SIMPLE email address thatll be used to upload

client docs to SharePoint

Click yes for ALL settings and be sure to click at bottom

Accept email from any sender then click OK

Your clients email will be

(Whatever u created)@wssv023.e1.serverdata.net



STAGE 3 LOAN APPROVAL

Approval from Underwriter

Order Title Appraisal & Phase 1

A27 - Appraisal for Property & SBA Approval

A28 - Environmental - TSA or Phase 1 & SBA Approval

Appraisal Approval

Environmental Approval

Authorization Wizard

C02 - SBA Loan Authorization & 327 Action Letters

Collect Final Documents for Closing



STAGE 4 LOAN CLOSING

Loan Closing Documents

C08 - Interim Lender Certification - SBA Form 2288

C09 - Third Party Lender Agreement - SBA 2287

C13 - Title Policy - ALTA

C14 - Filed UCC - 1

C19 - Leases - EPC - OC - Tenant Certs Assignments

C21 - Flood Insurance - FEMA Form

C27 - 504 Loan Closing Acknowledgement & Consent

C29 - Interim Lender-Note & Deed of Trust

C40 - ACH Auth & Voided Check

C41 - Participation Fee

C42 - Wiring Instructions

Loan Closing Documents

Insurance Personal Property

Insurance RE

Proof of Project Costs & Equity

Seller Note & Deed

Site Visit

Subordination Agreement

Subordination Agreement Seller

Survey or ILC

Tax ID

UCC Subordination

Closing Documents Needed



STAGE 5 LOAN FUNDING

Items needed from FMPP, SBA , Hanmi

Agreements Docs Needed

Assignment of Loan Documents

Assignments of Leases & Rents

C01 - 504 Debenture Closing Checklist

C04 - CDC Board Resolution - SBA Form 1528

C05 - Promissory Note - SBA Form 1505

C06 - Development Company DEB - SBA Form 1504

C07 - Servicing Agent Agreement SBA Form 1506

C11 - CDC Certification - SBA Form 2101

C12 - Opinion of CDC Counsel

C15 - Unconditional Guarantee - SBA Form 148-148L

C16 - CDC Deed of Trust

C17 - Assignment of Deed of Trust

C20 - Hazard Insurance

SBA does not require additional documents

C34 - Trust Agreement - Certification & Resolution

C38 - IRS W-9 Form

C44 - Injection-Cert Final Closing Statement & Certification

Customer Update Form

Lease Addendum

Lease Assignment

Name Affidavits

Non Homestead

SBA FMLP Program Authorization Agreement For

Preauthorized Payment - Debit

Statement Settlement Charges

Third Party Lender Security Agreement

Title Policy

UCC

UCC Post Filing Search