If insurance is required to close, what information is needed?
To close loans over $50,000, businesses must provide specific proof of insurance. Northeast Bank must receive evidence/certificates of insurance with several components in place. 1. The policies must be effective at the time of closing and their expiration dates should be more than 30 days beyond that date. 2. The policies must provide for 30 […]
Is there a revolving debt limit?
There is no revolving debt limit.
Do you require debt refinance?
If short-term, high-interest rate debt exists and is eligible for refinance based on the date taken out, NEWITY + Northeast Bank require it to be refinanced with an SBA loan. However, MCA loans cannot be refinanced and thus are not required to be refinanced with an SBA 7(a) loan. If the borrower does not wish […]
If a borrower has an existing SBA loan, can they get another one through NEWITY?
If a borrower has an existing SBA loan that was originated in the past 12 months, the borrower must meet requirements for the new proposed total loan amount to qualify for a new SBA loan through NEWITY + Northeast Bank.
Do prequalified loan amounts change in underwriting?
Yes, a prequalified SBA 7(a) loan amount may change in underwriting. Typically, this occurs due to outstanding debt. In many instances, the applicant can still receive an SBA loan at a lower loan amount. If the loan amount is reduced, the team will notify the client directly and seek confirmation whether to proceed with underwriting […]
Do required years in business vary by industry?
Yes. Generally, businesses need a minimum of 2 years in business to qualify. Businesses in the construction industry require at least 4 years to be eligible.
Who else offers a NEWITY Growth Term Loan?
The NEWITY Growth Term Loan is exclusive to the NEWITY platform and is not offered by other loan facilitators.
What can my client expect at closing and when does funding occur?
During closing, business owners will need to perform identity verification through our secure system and confirm account instructions. If the loan amount is over $50,000, the business must provide specific proof of insurance at closing as outlined in the Insurance FAQ. Without properly completed insurance certificates, the application cannot advance to funding. Once all closing […]
What are the loan terms?
All SBA 7(a) loans through NEWITY carry these terms: Interest Rate: WSJ Prime + 2.75% to 3.75%, Term: 10-Years, Prepayment Penalties: None. Interest rates are adjusted quarterly to reflect changes to WSJ Prime. For the first quarter of payments after loan funding, the interest rate is based on the WSJ Prime Rate in effect the […]
How does debt refinancing impact the closing process?
There are two scenarios for loan disbursements that incorporate refinancing debt: 1. Credit Card or Line of Credit Refinance – Depending on the language within the payoff letter, the bank will either pay off the balance directly or wire the funds to the borrower to pay off. Upon receipt of proof that the account is […]