What to Expect
application for a small business and nonprofit loan involves several steps Loan Review Loan Decision Loan Commitment Closing Conditions Loan Closing
Loan Application Process
An application for a small business and nonprofit loan involves several steps. At each stage the applicant is required to provide additional information. Generally, the larger and more complex the loan, the longer the process.
Application
Submit completed application materials to a Self-Help loan officer, as indicated on the application checklist. A loan officer cannot review your loan until all materials required in the loan application have been received.
Loan Review
A loan officer reviews your information, and may require additional information. The loan officer may suggest modifications to the original loan request to assure approval. After all information is received, the loan officer drafts a request for a loan decision from the Self-Help Credit Committee.
Loan Decision
The loan request receives formal approval, usually under certain terms and conditions (e.g., assignment of a life insurance policy on the business owner, certain equity investment, appraisal requirements). If your loan request is denied, the loan officer will explain the reasons for denial and suggest ways to improve your chances for approval.
Loan Commitment
Terms and conditions of the loan are described to you. A commitment fee may be required at this point.
Closing Conditions
Payment for real estate appraisals and environmental reviews if required, are settled at this point and other closing conditions are disclosed.
Loan Closing
Once all closing conditions have been met, loan documents are prepared for loan closing. Funds are then disbursed in accordance to the conditions under which the loan was approved.
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