Credit Myths
Credit Levers
Potpourri
100
Traditional Working Capital Lines of Credit cannot be approved through the Continuum/SA Channel? True/False
What is False?
100
The two asset types that can be financed with an SBA 504 loan
What are real estate and equipment (Equipment with a useful life of at least 10 years).
100
This line of credit product in legacy BB provides 50% incentive credit instead of 35%
What is BABC ABL?
200
No PGs are a non-starter for the continuum and Small business underwriting. True/False
What is False?
The Continuum underwriting team can support opportunities without a PG. It is an exception just like it is in legacy BB.
200
This SBA product has a maximum exposure limit of $500,000.
What is the SBA Express facility - (Either a 10 year term loan or a revolver to term for 12 months with a 9 year amortization)
200
This group at the Bank can provide 100% OOCRE financing for this profession.
What is Practice Solutions financing medical practices?
300
The definition for owner occupied real estate is at 40% occupancy for the sb/continuum and practice solutions. True/False
What is False?- For legacy small business rails/practice solutions that number is 30%.
In Legacy Business Banking there is no stated occupancy percentage.
300
This is the maximum term and amortization on a standalone 7a buy out loan.
What is 10 years?
300
The Continuum does not include or test loan covenants. True/False
What is False?
400
Our primary source of repayment is cash flow for all of our legacy BB credit products except this one.
What is an ABL facility?
PSOR is Asset Conversion
400
Market Executives can approve pricing exceptions for RM Continuum deals? True/False
What is false? We must follow RM/Continuum pricing protocol
400
For a general dentist, this is the time of licensing required in order to obtain financing to start or acquire a dental practice.
What is 1 year?
500
On continuum opportunities where we have both CPA reviewed or audited financial statements and tax returns, the small business team will default to tax returns for underwriting. True/False
What is True? - However, although we require tax returns always on continuum deals, we can use the highest level of financial statements for underwriting.
500
This recent policy change requires us to order a DDI for any credit action where the exposure exceeds this dollar amount
What is $5MM? (This is for both rails)-
* In legacy small business for high risk industries this cut off is at $3M.
500
This type of limited borrowing base facility in legacy Business Banking can extend up to 5 years and does not require a field exam by policy.
What is an Asset Test Line.
600
Our equipment finance team can monetize equipment purchased in cash more than 12 months in the past. (True/False)
What is true? Previously purchased equipment in cash over 12 months ago can be monetized with a valuation.
600
This lending product can provide up to 120% value on the purchase of an eligible asset.
What is equipment finance?
100% of the asset plus 20% in soft costs.
600
This is one of the four start-up franchise brands that BofA will finance.
(Non-Restaurant and Non-School related)
What is any of the following?
UPS Store, Pet Supplies Plus, Christian Brothers and School of Rock