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Fueling the Entrepreneurial Spirit
Funding the American Dream
Current Loan Programs:
Borrego Express Capital Loan Programs utilize 2 SBA Loan
Products:
Patriot Express Loan Program
Community Express Loan Program
COMMUNITY EXPRESS
BORREGO EXPRESS CAPITAL LOAN PROGRAM
BORREGO SPRINGS BANK, N. A.
LOAN AMOUNTS: $5,000 - $50,000
COLLATERAL: Unsecured
INTEREST RATES:
$5,000 - $25,000 – WSJ PRIME + 4.75%
$26,000 - $50,000 – WSJ PRIME + 3.75%
VARIABLE RATE ADJUSTING CALENDAR QUARTERLY
TERM: 7 YEARS - FULLY AMORTIZING
NO PREPAYMENT PENALITY : 21 DAY PAYOFF NOTIFICATION
COMMUNITY EXPRESS
WHO IS ELIGIBLE?
COMMUNITY EXPRESS: (EFFECTIVE OCTOBER 1, 2008)
All SBA ELIGIBLE BUSINESSES $5,000 - $25,000
$26,000 - $50,000 BUSINESSES LOCATED IN LMI ‘S AND
HUB ZONES
ELIGIBILITY CONTINUED
PATRIOT EXPRESS PROGRAM: ($5,000 - $50,000) (51% OWNED AND OPERATED)
VETERAN OWNED, ACTIVE DUTY MILITARY PARTICIPATING IN THE MILITARY’S TRANSITION ASSISTANCE PROGRAM (TAP), or ACTIVE DUTY WITHIN ONE YEAR OF SEPERATION, ACTIVE RESERVISTS OR NATIONAL GUARD MEMBER, OR A SPOUSE OF ANY OF THESE GROUPS , OR A WIDOWED SPOUSE OF A SERVICE MEMBER OR VETERAN WHO DIED OF SERVICE-CONNECTED DISABILITY
COMMUNITY EXPRESS
LOAN COST
$425 – PACKAGING FEE – DEDUCTED FROM LOAN PROCEEDS
2% SBA GUARANTY FEE ON GUARANTEED PORTION (85%) DEDUCTED FROM LOAN PROCEEDS
LOAN PAYMENTS – AUTO DRAFT FROM BUSINESS CHECKING ACCOUNT AT YOUR LOCAL FINANCIAL INSTITUTION
COMMUNITY EXPRESS
TECHNICAL ASSISTANCE REQUIREMENT
PRE AND POST CLOSING FOR ONE (1) YEAR FROM FUNDING
WHAT IS TECHNICAL ASSISTANCE?
BUSINESS PLAN – REQUIRED FOR ALL LOANS PRIOR TO FUNDING
ACCOUNTING , MARKETING, INVENTORY CONTROL, SALES TRAINING, P.O.S. TRAINING …
SBA APPROVED TECHNICAL ASSISTANCE PROVIDER
COMMUNITY EXPRESS
BUSINESS PLANS
THE BLUEPRINTS FOR BUILDING
YOUR BUSINESS
BUSINESS SUMMARY, MANAGEMENT RESUME AND ANALYSIS, MARKET IDENTIFICATION AND FINANCIAL PROJECTIONS
2 YEAR BREAKOUT OF INCOME AND EXPENSES TO INCLUDE OWNERS SALARY
STARTUP AND/OR NEW PROJECT COSTS
BALANCE SHEET AND CASH FLOW ANALYSIS INCLUDING LOAN PROCEEDS AND EQUITY INJECTION
COMMUNITY EXPRESS
INITIAL CREDIT APPROVAL
PERSONAL FINANCIAL STATEMENTS ARE REQUIRED
INCOME VERIFIED WITH TAX RETURN TRANSCRIPT (4506)
UTILIZING FAIR ISAAC SMALL BUSINESS CREDIT SCORING MODEL FOR FAST EFFICENT CREDIT APPROVAL
EVALUATES THE CREDIT HISTORY OF THE BORROWER ALONG WITH INDUSTRY DATA ON THE BUSINESS
CURRENT AND RECENT PAST DUE ACCOUNTS, COLLECTIONS, JUDGEMENTS, LIENS AND BANKRUPTCY HAVE VERY NEGATIVE AFFECT ON SCORE
COMMUNITY EXPRESS
ELIGIBILITY ISSUES
START-UP BUSINESSES ARE ALLOWED
LOAN PROCEEDS FOR BUSINESS ACQUISITION NOT ALLOWED
FRANCHISE MUST BE ON SBA APPROVED FRANCHISE LIST
www.franchiseregistry.com
LIQUID ASSETS OF INDIVIDUAL OWNER CAN NOT EXCEED $100,000
COMMUNITY EXPRESS
INELIGIBLE BUSINESSES
NOT FOR PROFIT BUSINESS
INVESTMENT REAL ESTATE – APARTMENTS, RENTAL HOUSING OR MULTI-TENANT BUILDINGS
SPECULATIVE REAL ESTATE LOANS OR BUSINESSES
AGRICULTURAL AND FARM BUSINESSES (GROWING CROPS OR ANIMALS)
FISHING AND SHORE OPERATIONS
MEDICAL FACILITIES (INCLUDING NURSING HOMES AND ALF’S)
COMMUNITY EXPRESS
INELIGIBLE BUSINESSES CONTINUED
MINING OPERATIONS (INCLUDING SAND AND GRAVEL PITS)
LOANS FUNDS TO OPERATE OR ESTABLISH OPERATIONS IN A FOREIGN COUNTRY
BUSINESSES ENGAGED IN TEACHING, INSTRUCTING, COUNSELING OR INDOCTRINATING RELIGION OR RELIGIOUS BELIEFS, WHETHER IN A RELIGIOUS OR SECULAR SETTING
A BUSINESS WITH ANY PRODUCTS OR SERVICES OF A SEXUAL NATURE
COMMUNITY EXPRESS
INELIGIBLE BUSINESSES CONTINUED
BUSINESSES THAT IS ENGAGED IN LENDING BANKS ARE NOT ELIGIBLEMORTGAGE BROKERS ARE OKMORTGAGE BANKER IS NOTPAWN SHOP – DEPENDS ON INCOME SOURCE
BUSINESSES THAT ARE ENGAGED IN GAMBLING
BUSINESSES ENGAGED IN PYRAMID SALES AND DISTRIBUTION
COMMUNITY EXPRESS
INELIGIBLE BUSINESSES CONTINUED
A BUSINESS THAT RESTRICTS PATRONAGE
CONSUMER AND MARKETING COOPERATIVES
A BUSINESS ENGAGED IN LOBBYING ACTIVITIES (50%)
INSURANCE COMPANIES
SBA LOAN PACKAGERS
A BUSINESS OR BORROWER THAT HAS A PRIOR LOSS TO THE GOVERNMENT
COMMUNITY EXPRESS
APPLICATION PROCESS
PREFERRED METHOD IS THROUGH A TA PROVIDER, PARTICIPATING BANK PARTNER, OR DIRECT FROM BORROWER
UPON INITIAL CREDIT REVIEW (FAIR ISAAC SMALL BUSINESS CREDIT SCORE), PROCESSING / UNDERWRITING CHECKLIST IS ISSUED TO BORROWER AND/OR THE TA PROVIDER
Y
UNDERWRITING PROCESS
ALL PROGRAMS:
REVIEW OF THE BUSINESS PLAN AND PROJECTIONS
(DOES IT MAKE SENCE? IS IT REALISTIC?)
VERIFICATION OF INFORMATION SUBMITTED
(TIME IN BUSINESS, HOUSEHOLD INCOME (4506), OWNERSHIP OF THE BUSINESS,
REVIEW OF LEASE AND BUSINESS FORMATION DOCUMENTS)
COMMUNITY EXPRESS
CLOSING PROCESS
COMMITMENT LETTER AND CLOSING DOCUMENTS ARE ISSUED ONCE ALL CHECKLIST ITEMS ARE RECEIVED, REVIEWED, AND APPROVED BY UNDERWRITING, (INCLUDING THE BUSINESS PLAN AND TA CERTIFICATE)
FUNDING THEN OCCURS AFTER RECEIPT AND REVIEW OF EXECUTED LOAN DOCUMENTS
NOTE: IF LOAN DOCUMENTS REQUIRE ANY CHANGES, CONTACT THE CLOSER IMMEDIATELY
Program Updates
Community Express
Patriot Express
Community Express Loan Program
The community express loan program will expire on April 30, 2011.
We will stop taking applications for the Community Express loan Program on
April 1, 2011
Patriot Express Loan Program
The Patriot Express Loan program has been extended for another 3 years by the SBA.
Potential New Products
We are currently evaluating the potential of the new Small Loan Advantage Program as well as the feasibility of the 7(a) program to deliver small dollar loans to businesses across the US.
COMMUNITY EXPRESS
QUESTIONS?
THANKS FOR YOUR INTEREST IN OUR
LOAN PROGRAMS
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