The following steps must be followed in order for an applicant to be approved for a loan. In addition to these steps, we expect to arrange at least one more in-person interview during the evaluation process.
- Fill out pre-qualification application. Please allow 2-3 business days for staff to respond.
- Those who are pre-qualified should schedule an appointment with a Loan Officer to pick up the loan application forms and go over the supporting documentation requirements.
- Fill out the loan application and gather supporting documentation.
- Return completed package to BiG loan officers. A complete package will contain a business plan on loans in excess of $5,000 and the supporting documentation below.
- Should assistance be needed in completing the application, classes are available at BiGAUSTIN.
- Staff will review the application before presenting the loan request to committee. We will follow up with you on specific items that require further explanation. This process typically takes us about 10 business days to finish. During this time, BiGAUSTIN loan officers may decide to decline the loan before advancing it to committee or postpone consideration until more information is provided.
- Once the report is finished, we present it to our loan review committee, made up of bankers and community representatives. The committee makes the final decision on accepting or declining a loan. Once the committee has decided, a loan officer will call to inform you of the decision.
- If approved, we will prepare the legal documentation and schedule a closing date. At closing, we’ll present you with the check (actually, typically multiple checks made out to each vendor).
The first step in applying for a loan with BiGAUSTIN is to fill out the pre-qualification application. This application is relatively short and gives us a picture of your current financial status and allows us to view your credit report. All guarantors or cosigners must fill this out, including everyone who owns 20% or more of the business. This step generally takes 2-3 business days.
The complete business loan application covers further details about the business and the intended use of funds, as well as providing us with a more complete picture of the personal finances of all signatories. Once a pre-qualified applicant submits the business loan application and the supporting documentation, we typically require 10 business days to process all of the information and present it to our loan committee, who makes the final decisions.
Pre-qualified loan applicants will need to fill out the Business Loan Application and submit the following supporting documentation (please note this is a sampling of required items, a complete list of requirements is provided to each applicant after pre-approval):
- Personal financial statement and cash flow statement;
- 3 years of income tax returns, both personal and business;
- Detailed business asset list (schedule of collateral);
- Year-to-date profit and loss statement;
- Business Plan or Concept Statement- determined by loan amount;
- Other Documentation as requested by your Loan Officer.
Guarantors and Cosigners
Guarantors and/or cosigners can often make the difference in whether or not the application is approved. All individuals who own 20% or more of a corporation or partnership are required to cosign the note, or serve as personal guarantors. In the case of a corporation, this often means that the principal loan applicant will be signing twice-as the representative officer of the company, and as a personal guarantor.
Applicants are encouraged to include spouses as guarantors. Oftentimes, the spouse’s credit and/or income will actually increase the likelihood of being approved.
Finally, one more word about guarantors: a financially sound guarantor is the best remedy for a lack of collateral or poor credit history. We will always want to have some collateral from the primary applicant, but in cases where there is little or marginal collateral, having a guarantor with a strong income and credit rating can mitigate the requirement.