HBDi has been providing commercial loans to small businesses for more than 25 years. We are not only experienced, but over time we have become very familiar with the financial needs of small companies and have designed flexible programs to meet those needs. As time is money, we have developed a streamlined loan process and faster turnaround time for you, the borrower. Listed below are the steps in our loan process; we’ll support you every step of the way.
Loan Application Process
The loan process begins when you contact an HBDi loan officer or submit an online contact form. When you submit an online contact form, an HBDi representative will contact you within 24 hours to discuss your inquiry. An HBDi loan officer will discuss your financing needs and determine the best HBDi loan product for your business needs. Your HBDi loan officer will provide you with a loan application (or you may download the application here). The Loan officer is available to assist you with any questions or guidance you may need. We typically can let you know immediately whether one of our products will fit your needs. If there is a fit, we’ll need you to supply additional information consisting of the following:
- Interim financial statements no older than 90 days from application date;
- Fiscal year-end financial statements for the last three years
- Copies of your business federal tax returns for the last three fiscal years;
- For a startup business a detailed business plan with projections will be required;
- For real estate we will need a copy of the purchase agreement.
- Depending on the specifics of your loan, your business, and your industry, we may require other information as well.
We will make the process as easy as possible for you. Your loan officer will guide you in gathering the requested items and answer all of your questions.
Your underwriter will process the information from your application, analyze your business and loan request, and prepare the loan report that goes to our credit committee. During the underwriting process, your underwriter may need to contact you regarding questions that come up during their analysis of your business. The faster you respond to these requests, the faster your loan will be submitted to credit committee for approval. Upon receiving all requested information, HBDi will generally be able respond to you about your loan request within 72 hours.
Approval and Commitment
Your assigned loan officer and underwriter will present your loan request to our credit committee—which meets as needed —for review and consideration of loan request. Upon approval, your underwriter will prepare a commitment letter for your review and approval. The commitment letter will provide details about the loan amount, interest rate, collateral required, equity required, as well as other important terms and conditions of the loan. Both your loan officer and underwriter will be available to discuss any aspect of the commitment letter and answer any questions you may have at any time. After you have reviewed the letter, you will need to sign and return it to HBDi
Upon receipt of your signed commitment letter, closing instructions will be forwarded to our closing attorney and the requisite closing documents will be prepared (please note, your signed commitment letter serves as authorization for HBDi to incur the costs for preparation of the loan closing documents). Depending on the use of loan proceeds, i.e. real estate acquisition, equipment purchase, etc., your loan will typically close within 7-14 days of receiving the signed commitment letter. During the closing process, reports such as the appraisal and environmental reports, title insurance, and lien searches will be ordered, reviewed, and approved. Your closer will provide you with a checklist of all the items needed to close your loan and will work with you to collect these items. The closer will also be available to answer any questions you have about the process and the closing checklist requirements. The sooner the checklist requirements can be met, the sooner the loan can close.
Once all the items on the closing checklist have been received and successfully reviewed, the loan closing will be scheduled. The closer will contact you with the time and place of the closing and discuss any items you may need to bring to the closing. Once all loan documents have been signed at the closing table, the loan proceeds will be disbursed in accordance with the requisite transaction documentation (i.e., invoices, purchase orders, purchase agreement, etc.).