The Loan Process

The Loan ProcessStep 1: Loan Application

The first step toward loan approval is to contact an Arkansas Capital Corporation (ACC) Lending Team Member. Typically, this will be a Loan Officer but in some cases it may be another member of the Arkansas Capital Corporation Lending Team.

A Loan Officer will discuss your financing needs with you and determine the best loan structure for you and your business needs. If a loan structure is agreed upon, the next step is the completion of an Arkansas Capital Corporation Lending Loan Application. Your Loan Officer will help you complete the Arkansas Capital Corporation Lending Loan Application.

From the initial conversation between you and an Arkansas Capital Corporation Lending Team Member you should have a good idea whether or not your borrowing needs are going to be a good fit with our different loan products. If it appears to be a good fit, we will ask you for the following information in addition to a complete Arkansas Capital Corporation Lending Loan Application:

  • Authorization to Release Credit
  • Personal Financial Statement
  • Personal Federal Income Tax Returns (most recent 3 years)
  • Personal Resume
  • Corporate Federal Income Tax Returns (most recent 3 years)
  • Interim Financial Statement (no older than 60 days)
  • Aging of Accounts Receivable and Accounts Payable
  • Business Debt Schedule
  • Copy of Purchase Agreement (Real Estate or Business Purchase)
  • Franchise Agreement & UFOC
  • Copy of Notes for any Debt being Refinanced
  • Articles of Incorporation or Organization and Bylaws
  • Projected Income, Expenses, and Net Profit (start-up businesses)

We are here to make the process easy for you. Any Arkansas Capital Corporation Lending Team Member stands ready to assist you gather this information or answer any of your questions.

Step 2: Underwriting

Once your Arkansas Capital Corporation Lending Loan Application has been received and reviewed by an Arkansas Capital Corporation Lending Loan Officer, a Proposal Letter will be generated for your review and execution. This Proposal Letter will document the proposed loan structure, loan amount, interest rate, collateral, equity as well as other requirements, and request a Good Faith Deposit. After you have reviewed the Proposal Letter, you will need to sign and return it, along with the Good Faith Deposit to your Arkansas Capital Corporation Lending Loan Officer.

Upon receipt of the executed Proposal Letter and Good Faith Deposit, your Loan Officer will analyze your business along with your loan request, and prepare a Credit Memorandum that represents your business and loan request to the Arkansas Capital Corporation Lending Loan Committee. During this underwriting process, your Loan Officer may need to contact you regarding questions that may arise during the analysis of your business. The faster you respond to these questions, the faster the underwriting of your loan request will be completed.

As part of the underwriting, Arkansas Capital Corporation Lending will request (from third parties) consumer and business credit reports, income tax verification, and initial environmental screenings (if real estate is involved). The estimated cost of these four reports is $250.00. Additionally, if an SBA, USDA, or SBA Express Loan Guarantee is required, a packaging fee of $1,000 for an SBA application, $1,000 for a USDA application, or $500 for an Express application will be charged. Your Good Faith Deposit will be used to cover the cost of these required expenses.

Normally, a complete loan application can be underwritten within 5 business days. Failure to submit timely and/or complete application information can substantially delay this process.

Step 3: Approval

Normally, the Arkansas Capital Corporation Lending Loan Committees meet every 2nd and 4th Friday of each month. This may change due to holidays and events beyond our control.

Your Loan Officer will present your loan request to the Arkansas Capital Corporation Lending Loan Committee. If approved, your loan request will move into packaging if an SBA or USDA Guarantee is required.

At this time, appraisals and further environmental reports, if necessary, will be ordered, reviewed and approved. Costs associated with appraisals, along with further environmental investigations, will be paid by the loan applicant separate and apart from the Good Faith Deposit at the time the services are requested by Arkansas Capital Corporation Lending.

Step 4: Closing

Once we have received SBA’s or USDA’s written approval, if required, all appraisals, environmental reports, and your loan request will be assigned to our Closing Department. Your loan should typically close within 30 days from the receipt of all required third party items.

The closer will provide you with a checklist of all required items, if any, to close your loan and will work with you to collect these items.

The closer will also be available to answer any questions you may have about the process and required closing items. The faster these checklist items are received, the faster the loan will close.

After the successful review of all items requested on the checklist, the loan closing is scheduled. The Closer will contact you with the time and place of the closing and discuss any items required at the closing. Once all loan documents have been signed at the closing table, your loan proceeds can be immediately disbursed.

From start to finish, providing the submission of timely information, your Arkansas Capital Corporation Lending Loan Processing should not exceed 45 – 60 days, depending on the complexity of the transaction.