Access to Capital

1
Access to Capital

• Business Financing Seminar
• USA Federal Credit Union
• J. Anthony Porras
• V.P. Business Services Development
• 858-831-8100 Ext. 1251

2
ROAD TO APPROVAL

• The quickest and easiest manner of obtaining a
  timely and positive credit approval is through a
  comprehensive presentation, complete with
  information needed to allow a third party
  (lender) to understand the business for which you
  wish to obtain credit for.

3
Business Description (Note Be Very Specific)

• This is an area in which the banker needs to know
  virtually everything you know about your
  business.
• History, founders, orig. purpose, established..
• Type of customers (name a few of the largest)
• Product type(s), current and future
• How business is generated (marketing plan)
• Regulatory issues or designations
• Employees Total, union?, office vs. plant
• Anything else that is pertinent to your success.

4
USA Federal Credit Union

• For Amounts of 50K or less
• Personal Financial Statement
• Last Years Personal and Business Taxes
• Year to Date Financial Statements
• For Amounts of 50K or more
• Last three years Business Tax Returns
• Last three years Personal Tax Return
• Year to Date Financial Statements
• Requests of 100K or more must be securitized
• Commercial Real Estate
• 75 Loan to Value (90 with SBA)
• No Prepayment Penalty (SBA excluded)
• 30 Year Amortization

5
USA Federal Credit Union

• Installment Loans - A fixed interest rates term
  loan (currently at about 8.00), repaid in equal
  monthly installments of principal and interest
  during the term of the loan, amortized up to
  seven year.
• Line of Credit - A check-driven, annually
  renewable revolving line of credit. Rates may
  vary from Prime 3 to Prime 5. Credit
  becomes available as the loan is repaid.
• Commercial Real Estate 10-25 Down payment.
  Investor and owner occupied. Rates are currently
  at about 6.75 fixed for 5, due in 10 or 15 yr
  fixed. California and out of state properties.

6
USA Federal Credit Union

• J. Anthony Porras
• V.P. Business Services and Development
• Phone [phone] Ext. 1251
• Email jporras_at_usafed.org