sba loan package prep...

"~^ beancounter ~^" wrote

thanx Paul, I will review the link...do you have an idea aprox how much time you had in the project?

Paul Thomas, CPA wrote:

"~^ beancounter ~^" wrote

Puting the actual loan package together, maybe 10 hours (includes dozens of phone calls and e-mails). But I was very specific in the engagement letter, that if they didn't have something necessary for the loan package, and that they wanted me to create it (PFS, and projected finacial statements come to mind), that was an extra fee (because it's extra time). PFS, maybe 4 - 6 hours each and the projected financials, maybe 20 hours.

Of course, I already had the tax returns and historical financials already done. I believe we had to get them to touch up their business plan. It was a little rough aroung the edges. Same for a couple of the owners resumes.

The bulk of the other items you get straight from the company (AR aging, AP reports, etc.). The notebook is just window dressing. Use tabs to separate the data and toss in a table of contents.

I charged a premium, and got a retainer in advance. They did get the loan they were looking for. And the remainder of my bill was paid. But I've had some in the past (live and learn, eh?) that stiffed on the fees when their deal fell through.

Looking back on it now, and given light of recent guidance, I would include a letter to the lender that unless otherwise noted (ie: the compilation financial statements and tax returns) that I just helped the client put the loan package together, that it is put together for the client needs, using data supplied by the client. That I didn't audit or review (unless I did that on the financials) any of the documents in the loan package, nor am I assuring the clients credit worthiness, and that we do not have a clients relationship with the lender. Etc and so on, per suggested wording from the insurance company.

thanx Paul...that info helps...big time...

Paul Thomas, CPA wrote: