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SBA Hot Topic Tuesday — Top 11 Reasons for LGPC Credit Memo Screen-Outs

April 10, 2017

SBA Hot Topic Tuesday — Top 11 Reasons for LGPC Credit Memo Screen-Outs

By Bob Coleman
Editor, SBA Hot Topic Tuesday

The number one reason for LGPC screen-outs is an incomplete credit memo, as we learned from last week’s Office of Capital access quarterly call.

Here are the top 11 factors leading to an incomplete credit memo.

  • SBA Sacramento Loan Processing Center

    SBA Loan Processing Center

    Life Insurance was not addressed

  • Certification that financials were verified against IRS Transcripts was not included
  • Schedule of Collateral was Missing or Incomplete
  • Credit Memo contradicts draft Loan Authorization
  • Use of Proceeds Unclear
  • Note(s) to be refinanced not clearly identified
  • Sufficient justification for refinance not provided
  • Need for Working Capital not addressed
  • Derogatory credit not addressed
  • Collateral Shortfall not addressed
  • Justification for Projections missing

Source: U.S. Small Business Administration Office of Capital Access

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