Small Business Loan Process

As a designated SBA national preferred lender, CapitalSource has demonstrated a proficiency in processing and servicing SBA-guaranteed loans.

This means the CapitalSource Small Business Lending team is not only experienced, but the SBA has delegated “final credit decision and most servicing and liquidation authority and responsibility” to CapitalSource, resulting in a streamlined loan process and faster turnaround time for you, the borrower. Here are the four steps in our loan process; we’ll support you every step of the way.

Loan Application

The loan process begins when you contact your CapitalSource Small Business Lending representative; typically, this will be your business development officer (BDO). Your BDO will discuss your financing needs and determine the best CapitalSource product for you. Your BDO will provide you with a loan application (or you may download the application here). Your BDO is available to assist you in completing the application.

We can give you a very good idea immediately as to whether one of our products will fit your needs. If there is a fit, we’ll need you to supply additional information. 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 or does not demonstrate historical debt service ability, 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. If refinancing debt, a copy of the note being refinanced will be required.
• Depending on the specifics of your loan, your business, and your industry, we may require other information as well.

We will make the process as easy as possible for you. Your BDO will help you gather the data, and one of our underwriters will be assigned to assist as necessary and answer all your questions.

Underwriting

Your underwriter will process the information from your application, analyze your business and loan request, and prepare the loan report that goes to our credit committee. During the underwriting process, your underwriter may need to contact you regarding questions that come up during their analysis of your business. The faster you respond to these requests, the faster your loan will be submitted to credit committee for approval. CapitalSource Small Business Lending will typically respond to you about your loan within 72 hours of receiving all requested information.

Approval and Commitment

Your assigned BDO and underwriter will present your loan request to our credit committee—which meets every day—for approval. Upon approval, 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. Both your BDO and underwriter will be available to discuss any aspect of the commitment letter and answer any questions you may have at any time. After you have reviewed the letter, you will need to sign and return it along with a good faith deposit check to CapitalSource. 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.

Loan Closing

Upon receipt of your signed commitment letter and good faith deposit check, your loan will be assigned to a CapitalSource Small Business loan packager and closer. Your loan will typically close within 45–60 days from receipt of the signed commitment letter. If your loan is an SBA request, your closer will work with you to collect the documents needed for SBA submission.

During the closing process, reports such as the appraisal and environmental reports, title insurance, and lien searches will be ordered, reviewed, and approved. Your 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 all the items on the closing checklist have been received and 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 CapitalSource Small Business Lending, your loan proceeds will be immediately disbursed.