NYSSCPA

CRRC-CPA

The Bridge built by Citi glossary has a comprehensive list of financial terms and definitions found on the Bridge website. <a href="https://icg.citi.com/ngl/eppublic/borrower/?resource-hub&amp;bridge-glossary&amp;629435f096b2535b903e523e" target="_blank" rel="noopener" data-link-source="tiny">Click here</a> to view more!

Frequently Used Terms

Lenders may ask for various documents to help them understand your business and evaluate whether you qualify for the business loan you are discussing.
In this post, we will discuss the items that banks and other lenders often ask for during the application process. This list is designed to help you understand what information you may need to compile once you have connected with a lender on the Bridge built by Citi platform.
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<h3>Background information on you &amp; your business:</h3>
<ul>
<li>Business and/or Personal Credit Score. You don&rsquo;t have to have documentation for this part but Lenders will often access credit scoring databases to understand the credit history for both your business and your personal credit.</li>
</ul>
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<ul>
<li>Basic Personal Information The person applying for the business loan on behalf of the business will often be asked to provide some basic personal information in the lender&rsquo;s commercial loan application.</li>
</ul>
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<ul>
<li>Business Profile Information &amp; Licenses / Permits Lenders will want to know basic business profile items like legal name, operating address, entity type, any trade names (also known as &ldquo;DBA&rdquo; names), etc. They will also ask for your Employer Identification Number (EIN) if you have one. Additionally, lenders may ask for applicable licenses and permits to ensure that your business is operating legally. </li>
</ul>
<h3>Financial Information</h3>
<ul>
<li>Two or Three Years of Business Financial Statements A key part of the loan application process involves the verification of your income and the repayment capacity of your business. Your business&rsquo;s financial statements help them evaluate your ability to repay the loan you are applying for.</li>
</ul>
&nbsp;
<ul>
<li>Two or Three Years of Tax Returns (business and/or personal) Lenders will often ask for signed copies of your business and/or personal federal tax returns for the 2-3 years prior to your loan application.</li>
</ul>
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<ul>
<li>Business Plan Providing a comprehensive business plan that explains what your business is about and how you intend to use the loan will help lenders understand your needs and credit profile. Some lenders require this while others may not.</li>
</ul>
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<ul>
<li>Bank Statements Lenders commonly request anywhere from the last several months to the last several years of bank statements. Bank statements help present a picture of the cash inflows and outflows of your business.</li>
</ul>
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<ul>
<li>Personal Financial Statement (&ldquo;PFS&rdquo;) If anyone is providing a personal guarantee, lenders will often ask that a Personal Financial Statement form is completed. This form details the assets and liabilities of an individual.</li>
</ul>

Completing your request for financing shouldn&rsquo;t be that difficult! View this to learn what documentation will be needed for next steps in the process.

8 Commercial Loan Documents That Lenders Ask For

Some responses have been edited for clarity and length
<h6>In your opinion what is the most important advice you'd give to a Black business owner going through a loan approval process?</h6>
T. Alston: Preparation is critical and the better one understands what is required to successfully get through the lending process, it will increase the chances of getting access to the capital needed to scale their business.
Anticipate that the loan process may take time. If one is applying for any type of loan where there is a sense of urgency, this can lead to making poor lending/financial decisions, which could cost a business owner in the long run.&nbsp;
Align yourself with a financial institution that fits your needs and works to understand your business and personal financial goals before you apply.&nbsp;
Understand that it takes time. It&rsquo;s ok if you do not get approved the first time around. [Your financial institution] can work with you to help you be better educated and positioned to get access to the funding you need.
D. Hutcherson:&nbsp;If at all possible, confirm all of the requisite information required to submit a complete commercial loan package from the prospective lender upfront. It will then go through the bank&rsquo;s underwriting process without requiring a follow-up request that could extend or delay the loan decision. At the time of submission, ask for a time range of when the lender will provide you with a decision on the loan request assuming you have provided a complete package. Continue to follow-up in writing. If the decision ends up in a decline, ask for alternative borrowing options.
D. Gorham:&nbsp;Meet with a banker first. Let them help you in assessing your borrowing needs and more importantly, your borrowing capacity.
<h6>Can you walk through the loan application process? This is the process after an RFP has been submitted and a connection has been made with a business through the Bridge built by Citi platform.</h6>
D. Gorham: First, we collect an application package. That package includes the application, a personal financial statement, tax returns, business financials, and a few other documents we need. Once we have a complete application package, it is submitted for underwriting. Once the loan is underwritten, it is either approved or declined and that decision is communicated to the applicant. If the loan is approved, we collect additional information such as ordering appraisals or evaluations, and we begin scheduling the closing.
D. Hutcherson: Our loan review process is one where we request specific information from a prospective borrower. Each deal is evaluated based on our review of the historical operating history of the borrower. We analyze historical financial information, get answers based on the information provided and from there, our underwriting department decides on the loan request. The decision is a collaborative one, involving the work done by our commercial loan underwriting department, the commercial loan officer, and our credit committee.
<h6>To anyone who doesn't feel they are ready for a bank loan, how would you say a banker can best assist them?</h6>
D. Gorham:&nbsp;Your banker can help you with assessing your businesses financing needs as well as the appropriate financial products. Your banker may also help provide you with knowledge and experience from other business owners and can sometimes connect you with potential customers, suppliers etc. Additionally, your banker may be able to connect you with organizations that provide technical assistance to get the borrower ready to apply for and potentially receive a loan.
D. Hutcherson: A banker can provide guidance to someone on the overall package required to provide a financial institution when applying for a loan. If a prospective borrower believes they are ready for a bank loan, based on its current maturity as an organization, a banker can provide suggestions on the steps the company should undergo to position its organization for a loan. Additionally, the banker can provide recommendations on companies the borrower can contact for assistance to prepare a business plan and complete a loan package the bank requires to evaluate a commercial loan request.
T. Alston: For business owners who feel they aren&rsquo;t quite ready for a business loan, I would highly recommend they align themselves with a CDFI that can provide the mentorship and guidance to help them be better positioned to get access to capital. Like many CDFI&rsquo;s, BBIF is uniquely equipped to understand and meet the needs of the businesses we serve and through technical assistance, we are able to provide a number of business management resources.
<h6>BBIF is a Black-owned CDFI. Can you talk about the demographic you are focused on and how that may differ from other institutions because you are Black-owned?</h6>
T. Alston:&nbsp;The following from our CEO Inez Long says it all &ndash; &ldquo;Focusing on the needs of Black entrepreneurs, and why those needs exist, has allowed us not only to help spur Black business ownership, it has also helped grow a culture and community of Black entrepreneurship.&rdquo;
<h6>As Chief Technology Officer at First Independence, can you tell us about the impact of technology on banking, and even more specifically within the Black community and MDIs?</h6>
D. Hutcherson:&nbsp;Technology has changed and accelerated the way we provide information to our customers and how our customers transact business. The trend towards digital banking over the last three years grew exponentially, largely because of the COVID-19 pandemic, shelter from home precautions and mandates that occurred. To remain relevant and competitive, MDIs look to partnerships with fintech organizations, offering apps to conduct banking transactions and process large amounts of data while protecting the security of their customers&rsquo; information and privacy. This allows MDIs to service their customers.
See a list of all the MDIs participating on the Bridge built by Citi platform at <a href="https://www.bridgebuiltbyciti.com/resources/63c87a1b9ab838209a4c147c-list-of-lenders" target="_blank" rel="noopener" data-link-source="tiny">this link</a>.

CNBC

Lenders from Black-owned financial institutions participating on the Bridge built by Citi&reg; platform share advice on the loan process with the Black business owner in mind.

A Q&A on the Lending Process

In this post, we&rsquo;ll explain different types of business loans, so you can learn more about the funding options that are available to your business and evaluate which is best for your needs.
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Here are 8 of the common types of loans available on Bridge:
<ol>
<li>Business Term Loan A business term loan provides the full approved loan amount to the borrower upfront. The borrower then repays the principal and interest on the loan through a series of periodic payments over an agreed upon amount of time. Term loans are generally given to businesses that need cash to purchase equipment, a building, or any other type of fixed assets. </li>
<li>Line of Credit A line of credit is a flexible loan that provides access to a set amount of money. Unlike a term loan or mortgage, there&rsquo;s no lump-sum disbursement made at loan closing. Instead, the business owner can borrower as financing needs arise, up to the approved loan amount, and repay the principalat any time until the loan matures. Regular payments of interest are paid on principal amountsoutstanding under the line of credit.Lines of credit are most often used to cover the gaps in irregular monthly income or finance a project whose cost cannot be predicted up front. </li>
<li>Commercial Mortgage A commercial mortgage is a loan that businesses use to buy, develop, or improve a commercial property. The loan is typically secured by the property. Example properties include an office building, storefront, or warehouse. The approved loan amount of a commercial mortgage is typically calculated on a loan-to-value basis, measuring the value of the loan against the value of the property. The borrowed amount is repaid in monthly principal installments, along with interest. </li>
<li>SBA Loans An SBA loan is a loan from a lender in which the Small Business Administration (or &ldquo;SBA&rdquo;) guarantees a portion of the loan principal to reduce some of the lender&rsquo;s risk. The SBA has several loan types, including SBA 7(a) loans, 504 Loans, CAPLines, Export Loans, Microloans, and Disaster Loans. More information on SBA loans and the qualification criteria that can be found at <a href="http://www.SBA.gov" target="_blank" rel="noopener">www.SBA.gov</a> . </li>
<li>Equipment Loans An Equipment Loan is used to purchase business related equipment. The equipment serves as collateral for the loan. Terms for equipment loans have a wide range that can be anywhere from months to 10 years or longer. </li>
<li>Accounts Receivable Financing &amp; Factoring Accounts receivable financing is a type of financing that allows businesses to receive funds up based on the value of accounts receivables (or &ldquo;AR&rdquo;). This helps businesses get cash quickly without having to wait to receive customer payments. Factoring is a similar type of financing arrangement but unlike AR financing, factoring involves the sale of a business&rsquo; accounts receivable to a third party at a discount. </li>
<li>Acquisition Loans A business acquisition loan is a type of financing you can use to purchase an existing business or open a new franchise. </li>
<li>Other Bridge offers various lending structures that include inventory financing, acquisition financing, leasehold improvements and much more! With 30+ lenders on the platform, if you detail your loan needs in your RFP, we&rsquo;ll help you find the right lender!</li>
</ol>
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Not sure which lending product is for you?&nbsp; Review the different types of lending products Bridge offers to make the right choice for you business!

Lending Products Available on Bridge

New York, NY/Bentonville, AR&nbsp;&ndash; Walmart and Citi are collaborating to introduce the Bridge built by Citi platform (&ldquo;Bridge&rdquo;) to Walmart&rsquo;s 10,000 small- and medium-sized businesses (SMBs) in their US-based supplier network. Bridge is a digital platform that connects SMBs with a diverse group of more than 70 lenders that provide qualifying businesses with loans of up to $10 million.
Through a single loan request form, Walmart suppliers can interact with a broad group of lenders located across the United States. Once a request is submitted, the platform seamlessly connects suppliers with multiple potential lenders that can evaluate their requests. This provides for a more efficient loan process for both the suppliers and lenders and empowers suppliers by offering them greater choice, convenience, and access to capital. It also provides lenders with the potential to expand their reach beyond their immediate local market and diversify their lending businesses. In preparation for this launch, the platform&rsquo;s lender base has grown from 18 banks in 2021 to more than 70 lenders nationwide currently on the platform.
&ldquo;At Walmart, we know small- and medium-sized businesses are the engine that drives the U.S. economy and local communities. Many diverse owned businesses also fit the small- and medium-sized business profile. As such we stand to strengthen our longstanding&nbsp;<a href="https://corporate.walmart.com/suppliers/supplier-inclusion" target="_blank" rel="noopener" data-link-source="tiny">Supplier Inclusion</a>&nbsp;offering through this specific opportunity,&rdquo; said Jason Fremstad, Senior Vice President of Supplier Development at Walmart. &ldquo;By leveraging the platform, our suppliers can have better access to the funding they need to expand their operations to reach and surpass their goals. Greater access to capital will help our suppliers continue to provide the products that our customers are looking for.&rdquo;&nbsp;
Working capital loans, commercial mortgages and other pre-shipment financing loans are among the potential loans extended by some of the lenders on the platform. Walmart has programs that help with post-shipment financing, but Bridge built by Citi has the potential to expand options available to qualifying suppliers.
Bridge was developed to provide more inclusive access to capital while supporting innovative, digital-first solutions for SMBs. &ldquo;Many small and medium-sized business owners don&rsquo;t have a network of existing bank relationships &ndash; especially those operating in underrepresented communities,&rdquo; said Rohit Mathur, Head of the Bridge built by Citi platform. &ldquo;Bridge offers a modern and efficient way for Walmart&rsquo;s U.S. suppliers to navigate the lending process and cultivate relationships with multiple lenders while helping them gain access to the capital that is essential for them to grow.&rdquo;
In preparation for engaging Walmart&rsquo;s supplier network, Citi focused on increasing the number of Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs) on the platform. Of the more than 70 lenders currently participating on the Bridge built by Citi platform, more than 20 are MDIs and four are women-owned institutions. In addition, 15 of the 20 Black-owned banks in the U.S. are lenders on the platform. Citi and Walmart are proud to help introduce suppliers to financial institutions that are committed to serving their communities and promoting racial and gender equity.
M&amp;F Bank in North Carolina has used the platform to source opportunities to lend hundreds of thousands of dollars to businesses they would not have found otherwise.&nbsp;&ldquo;We&rsquo;re proud to be part of a platform that enables us to connect with our target market in a more intentional and efficient way and are excited to now extend our reach to Walmart&rsquo;s extensive supplier network,&rdquo; says M&amp;F Bank CEO James Sills. &ldquo;By growing and diversifying our business mix, Bridge enables us to&nbsp;make even more of a positive impact on the communities we serve.&rdquo;&nbsp;&nbsp;
In addition to the introduction of Bridge built by Citi to Walmart suppliers, Walmart and Citi will also collaborate to provide suppliers with educational content to increase financial literacy.&nbsp; &nbsp;
&ldquo;At Citi, we are focused on delivering innovative solutions that create value for our clients and contribute to a more inclusive and efficient financial ecosystem. This includes our collaborations with clients and partners such as Walmart to identify optimal paths for the solutions we are creating,&rdquo; says Emily Turner, Head of Business Development, Institutional Clients Group at Citi.&nbsp;&nbsp;
Walmart suppliers can access the platform and review terms of use through a dedicated website:<a href="http://www.bridgebuiltbyciti.com/walmart" data-link-source="tiny"> www.bridgebuiltbyciti.com/walmart.</a>
Note: Neither Walmart nor Citi have any influence in lending decisions, nor do they participate as lenders on the platform. Bridge helps to facilitate the establishment of an independent relationship between a prospective borrower and one or more lenders.

Walmart and Citi are collaborating to introduce the Bridge built by Citi platform to Walmart&rsquo;s small- and medium-sized businesses in their US-based supplier network.

Walmart and Citi Introduce the Bridge built by Citi® platform to Walmart Suppliers

Are you a small or medium sized business owner in search of financing options? Bridge built by Citi offers access to over 70 lenders. View this post to see the full list.

Meet the 70+ Lenders for Small-and-Medium Sized Businesses

A Minority Depository Institution (or "MDI") is a formal federal designation for banks and credit unions that are either owned or directed primarily by African Americans, Asian Americans, Hispanic Americans, or Native Americans.

Access various lenders on Bridge!

A Community Development Financial Institution (or "CDFI") is a financial institution that provides credit and financial services to underserved markets and populations.

"As a local community bank with innovative financial solutions, we are so excited to be able to expand our reach through the Bridge built by Citi platform."