7(a) Loan Underwriting December 12, 2017 Level: Basic

SBA West Virginia District Office SBA Tennessee District Office

7(a) Loan Underwriting December 12, 2017 Level: Basic

For technical assistance, call the AT&T Helpdesk at 888-796-6118 Thank you!

SBA West Virginia District Office 11:00 a.m. Eastern

UNDERWRITING BASICS Presented by: Gary Griffin

President/CEO Capital Growth Solutions, LLC

SBA West Virginia District Office SBA Tennessee District Office

We would like to thank Gary Griffin for his time on this webinar and providing information regarding his

experience in lending and working on SBA loans from his perspective.

All opinions, conclusions, and/or recommendations expressed herein are those of the presenter(s) and do not necessarily reflect the views of the SBA.

Conversation topics :

The more dealt with on the front end, the faster the entire process. Obtain the detail upfront to eliminate surprises.

Difficulty of refinancing existing SBA debt and why this is the case Interim loans should be a rarity, realistic timeframes need to be established Importance of experienced closing attorney Importance of third party reports and ordering them immediately upon

receipt of SBA authorization Importance of each item of the authorization being adhered to in order to

protect guaranty Each program: Small loan, Express, 504, FSA and USDA are their own

animal. There are different rules, guidelines, etc.

Pre-screen

Loan Application (What are we trying to accomplish?) Synopsis of loan request (preliminary ? this often changes during the underwriting process) Provides details on Sources and Uses of funds

Example:

Purchase of Real Estate: Real Estate Improvements: Purchase Equipment: Refinancing existing debt: Working Capital: Closing Costs: Total: Less Equity Injection: Loan Request:

$ 760,000 (Need contract) $ 40,000 (Need contract) $ 50,000 (Need quotes) $ 50,000 (Need copy of note) $ 60,000 (Anticipated use) $ 40,000 $1,000,000 ($ 100,000) (Source?) $ 900,000

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