The Loan Process

There a four basic steps to getting a CapitalSource Small Business Lending loan, and we are going to support you along every step:

Step 1: Loan Application

This process starts when you contact your CapitalSource Small Business Lending representative. Typically, this will be your Business Development Officer (BDO). Your BDO will discuss your financing needs and determine the best CapitalSource product for you. Your BDO will then provide you with the CapitalSource Small Business Lending loan application (or you can download the application here). Your BDO will also be available to provide assistance to you in completing the application.

We can give you a very good idea immediately about whether your lending needs are going to be a fit with our products. If we can help you, we will ask you to give us some more information so we can provide you with a loan. We will ask you to provided us with:

Interim financial statements no older than 45 days from application date.
Copies of your Business Federal Tax Returns for the last three fiscal years.
If your business is a startup, or does not demonstrate historical debt service ability, a business plan or projections for the next two years will be required.
If you are purchasing real estate or other business assets, we will need a copy of the purchase agreement. If your business is a franchise business, we will need a copy of the Uniform Franchise Offering Circular (UFOC), as well as your signed Franchise Agreement. For the refinance of debt, please provide a copy of the note being refinanced.
Depending on the specifics of your loan, your business and your industry, we may require other information as well.

We will make the process easy for you. Your representative will help you gather the data, and you will also be assigned an underwriter to help with the process and answer all your questions. The many testimonials from our satisfied borrowers are the best proof we can give you of our commitment to helping you grow your business and be successful.

Step 2: Underwriting

Your underwriter will process the information from your application, analyze your business and your 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 can respond to these requests, the faster your loan will be submitted to credit committee for approval. CapitalSource Small Business Lending will respond to you about your loan within 72 hours of getting all requested information.

Step 3: Approval and Commitment

Your BDO and your underwriter will present your loan request to our credit committee. Credit committee meets every day. Upon approval of your loan, 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 BDO and underwriter are 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, along with the good faith deposit check, to CapitalSource. Your good faith deposit will be used for loan closing expenses such as the appraisal and environmental reports, loan closing attorney's fees, credit reports, and lien searches.

Step 4: Loan Closing

Upon receipt of your signed commitment letter and the good faith deposit check, your loan will be assigned to a CapitalSource Small Business Lending loan packager and closer. Your loan will typically close within 45–60 days from receipt of the signed commitment letter. If your loan is an SBA request, your closer will work with you to collect the documents needed for the SBA submission.

During the closing process reports such as the appraisal and environmental reports, title insurance, and lien searches will be ordered, reviewed, and approved. The 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 faster these checklist requirements can be met, the faster the loan can close.

Once we have all of the items on the closing checklist and the items have been 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 and reviewed by CapitalSource Small Business Lending, your loan proceeds will be immediately disbursed.

*All timelines are estimated, typical timelines based on past CapitalSource Small Business Lending transactions. However, the actual timeline for your loan will be dependent on several factors, and your BDO can provide you with the most accurate estimate of the timeline for your loan. 72 hour credit decision is from the time we receive your complete loan package. 45–60 day closing is from the date we receive your signed commitment letter.