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.
-
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