Lending Syndicate: Washington, D.C. Consortium

Loan Origination & Underwriting Processes

Based in Washington, D.C. since 1995, our expert team specializes in originating and underwriting business loans with deep local knowledge. We source loans through trusted referrals from established D.C. area banks. Led by professionals with over 40 years of experience in lending, legal, and title services, our team handles loan origination, underwriting, due diligence, and borrower verification with precision and care. Loans are underwritten by assessing risk and secured with collateral from assets such as business bank accounts, invoices, inventory, contracts, and real estate.

    1. Origination process generates a potential loan transaction fitting the basic criteria of 12 months with sometimes 6-month extension upon certain benchmarks and fees paid before an extension; interest rate and necessary security.

    2. Upon analysis to commence basic due diligence, broker pulls credit report on company and its principals. If this first element is acceptable, issue a Term Sheet to potential borrower. If accepted, proceed to next step.

    3. Request for documents pertaining to company and its financial situation, i.e. formation documents of borrowing entity, either operating agreement for LLC’s or by-laws for corporation, P/L, balance sheet, last six months of bank statements to verify cash flow and accuracy of representations, financial statements of borrower(s), business history of borrower(s) and guarantors, personal history, ie. marital status, ties to community, family history, prior track record of business and their endeavors, references, reason(s) for funds; business plan for use of funds and exit strategy from loan. If all is acceptable, proceed to next step.

    4. Face to face meeting with broker and manager of the lending syndicate to conduct site visit of enterprise (and surrounding areas as the case may be) and meet with potential borrower(s) to discuss all information provided. If the lending syndicate determines to proceed, the next step.

    5. Verify all elements of process at this stage; obtain a title report from licensed, regulated company as to status of title of the real property and if there are any issues that need to be addressed, obtain a Title Commitment issued by Title Company for the loan, conduct further in-depth financial analysis and market review of business and its guarantors. If acceptable, issue decision of the approval process and send to law firm for drafting of loan documents as follows;

      1. Loan Agreement

      2. Real Property Security document – either Deed of Trust or Mortgage depending on state, as a state in USA is either a Deed of Trust state or a Mortgage state.

      3. Promissory Note

      4. Guaranty Agreement for principal(s)

      5. Uniform Commercial Code (“UCC”) or Security Agreement filing for all personal property, including contracts, bank accounts, fixtures, machinery etc. (Everything else involving the business enterprise other than the real property).

      6. Forward drafts of Loan Documents to Borrower or its counsel for review. Work out any and all issues.

      7. Inform Borrower and Title Company to arrange closing. All documents are executed, notarized where needed, and sent to the jurisdiction’s recorder’s office at courthouse for recordation and being of record.

      8. Title company sends recording information to the lending syndicate and the lending syndicate funds loan to Borrower. Borrower pays all fees for the complete process (broker, credit report(s), title company, title insurance for insuring the loan documents, legal fees for document preparation).