Monday, September 22, 2008

SAMPLE BANK LOAN APPLICATION FORM

Sample Bank Loan Application and Review Forms.
Content provided by Business Owner's Toolkit A content partner of the SME Toolkit

Benefits:

This document combines a representational bank loan application and the form used by a small community bank for an internal review of the application. By linking these two documents, we can help you understand what information the bank wants from you as well as how the bank will use that information in making its decision on your loan application.
The file contains a six-page document in rich text format (RTF) that is suitable for use with most word processing programs used in the Windows environment.

Special Features:
highlights the relevant loan criteria that bankers actually use in making small business lending decisions
identifies typical loan to value ratios for the most commonly used collateral for small business loans
provides a working outline for your preparation of a conventional loan application
Internal Bank Loan Review
Primary Officer: _________________________
Prepared By: ___________________________
Date Prepared: _________________________

Loan Request
Borrower: ________________________________________________________________________
Business Information:
Form: ____________________________________________________

Organ Date: _______________________________________________

Type: _____________________________________________________

Management: _____________________________________________

Ownership: _______________________________________________
Guarantors: Typically the owner of the business ______________________________________
__________________________________________________________________________________
Request: _________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Purpose: _________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Terms:
Type
Amount
Rate/Fees
Term
Repayment















Source of Repayment
Primary: ___________________________________________________

Secondary _________________________________________________

Tertiary: ___________________________________________________
Collateral Description: _____________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Collateral Valuation:
Type
AppraisedValue
% of ADV
Debt
Avail.Equity
LTV

Accounts Receivable

75% (0-90 days)




Inventory

30%




Equipment

75%




Marketable Securities

70%




Commercial and Residential Property

75%




Vacant Land

30-50%





Flood Hazard: ____________________________________________________________________
__________________________________________________________________________________
Environmental Concerns: __________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Bow Debt:
Type
Open
High
Bal.
# of REN
Rate
Terms
SEC
LTV



























Bow Payment History: _____________________________________________________________
__________________________________________________________________________________
Line of Credit Usage:
Low Balance: _________________________
# of Days at Zero: _______________________
Other Debts: ______________________________________________________________________
__________________________________________________________________________________
Depository Relationship:
Name
Acct #
Type
Opened
Balance
Avg. Col. Bal.
Rate





















Average Cost of Funds: ____________________________________________________________
Trust Relationship: ________________________________________________________________
Background Information: ___________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Financial Statement:
Last 3 years of business financial statements and/or tax returns

Last 3 years of owner’s personal tax return

Current personal financial statement



BUSINESS LOAN APPLICATION

Date: __________________
______ New Relationship
Branch: _________________
______ Existing Relationship
Officer: ____________________

BUSINESS INFORMATION
Business Name
Address
Telephone ( )
Tax I.D.
Individual Name(s)
Address
Telephone ( )

Date of Birth:
Proprietorship _________
Partnership _________
Sub-Chapter S______
Corporation ______
Non-Profit _________
Individual ________
LLC _______

Ownership Distribution: (List stockholders, partners, owner names)
Note: Attach separate sheet if additional space needed.
Name
Title
# of Years
%

Name
Title
# of Years
%

Name
Title
# of Years
%


Nature of Business
Year Established
Number of Employees
Years at Present Location
[ ] Own
[ ] Lease
Accountant
Telephone ( )
Insurance Agent
Telephone ( )
Attorney
Telephone ( )

FINANCIAL INFORMATION
Bank of Account
Account Number

Credit Relationships: Please provide details of your business credit relationships below:



Original Loan
Amount

Maturity
Name of Creditor
Purpose of Loan
Amount
Presently Owing
Repayment Terms
Date

N
N

N
N

N
N


LOAN REQUEST
Amount of Loan Requested
Type of loan

[ ] Line of Credit

[ ] Term Loan
Requested Term of Loan ____________________
[ ] Business Home Equity

[ ] Commercial Real Estate


Specific Loan Purpose (Check all that apply)

[ ] Working Capital
[ ] Other (State type of loan required and loan
[ ] Finance Purchase of Inventory
purpose)
[ ] Finance Purchase of Equipment
__________________________________
[ ] Finance Purchase of Real Estate
__________________________________
[ ] Finance Purchase of Business
__________________________________
[ ] Refinance Existing Loan or Debts
__________________________________


Collateral Available* (Check all that apply)

[ ] All Assets (accounts receivable, inventory, machinery and equipment)
[ ] Specific Equipment (Please attach equipment list, including serial numbers or description of
equipment, and invoices for new equipment.)
[ ] Real Estate (Please attach property address, legal description and a copy of most recent tax
bill.)
Square Feet __________
Acres _________
[ ] Cash on Deposit at (name of bank)
Branch ________________
Account # ____________
[ ] Personal Assets (As described in Personal Financial Statement.)

*
Collateral: Loans are secured by collateral, which is property in which a security interest is granted to secure repayment of the loan. The loan collateral may include business assets, stocks, bonds, certificates of deposits, or personal assets. Consider (1) the value of the loan collateral must be equal to or greater than the amount of the loan, (2) expected economic life of collateral will be considered by the Bank in evaluating the collateral offered for the loan, (3) formal collateral appraisals may be required, and (4) a pledge of personal assets may be required as additional collateral for the business loan requested.

[ ] Guarantors** (Please list)


Name


Address

Name


Address

Name


Address


**
Guarantors: For incorporated borrowers, guarantees of owner(s) is usually required, unless secured by Bank deposits or marketable collateral. If personal assets are in joint names, a sole proprietorship, and/or partnership, the Bank may require all parties to pledge collateral.

BUSINESS BACKGROUND INFORMATION

Please provide a brief history of your business, future plans and projections, and describe your products and/or services and competition.







PERSONAL BUSINESS EXPERIENCE

If you have been in your present business for under five years, please describe your previous business experience. (Include business background, management experience, and training, or include a resume.)





MISCELLANEOUS INFORMATION

Are tax liabilities current? [ ] Yes [ ] No
Settled through ______________
Is the business an endorser, guarantor, or co-maker for any obligation not listed in the financial statements? [ ] Yes [ ] No
If yes, what is the contingent liability? ___________________________________________
Has the business or principal owner ever declared bankruptcy? [ ] Yes [ ] No
If yes, provide details on a separate sheet.
Is the business a defendant in any lawsuit? [ ] Yes [ ] No
If yes, provide details on a separate sheet.
Are any of the business assets encumbered by liens or attachments of any type? [ ] Yes [ ] No

What By whom Amount N

What By whom Amount N

What By whom Amount N
Does the business have a pension fund? [ ] Yes [ ] No
profit-sharing plan? [ ] Yes [ ] No
If so, does the plan have any unfunded pension liabilities? [ ] Yes [ ] No
Amount N

CERTIFICATION

The undersigned certifies that, to the best of his or her knowledge and belief, all information contained in this loan application and in the accompanying statements and documents is true, complete, and correct. The undersigned agrees to notify the Bank immediately of any material changes in this information. It is further agreed that, whether or not the loan herein applied for is approved, the undersigned will pay or reimburse the bank for the costs, if any, of surveys, title or mortgage examinations, appraisals, etc., performed by non-Bank personnel with the consent of the applicant. The undersigned authorizes the Bank to contact any bank and trade creditors it deems necessary without further notice, including, but not limited to, Dunn & Bradstreet reports or information from TRW Credit Data.


Business Name (print):


Applicant Signature:

Date:
Applicant Title:





Guarantor(s) Signature:

Date:
Guarantor(s) Signature:

Date:






BUSINESS LOAN APPLICATION CHECKLIST

Please be sure all of the following documentation has been included in order for your business loan application to be processed.



[ ] Business Loan Application

[ ] Accountant-Prepared Business Financial Statements (Profit and Loss, Balance Sheet) for the past three fiscal years

[ ] Business Federal Tax Returns for past three fiscal years

[ ] Interim Financial Statements (if available)

[ ] Most Recent Federal Tax Returns for each principal owner listed in the first section of the Business Loan Application

[ ] Personal Financial Statement

[ ] Organizational Papers (Articles, dba papers, etc.)

[ ] OTHER: ________________________________________________________________

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