Celtic Express Loans Product Overview Celtic bank Celtic Express Loans Product Overview

Celtic Bank Established in 2001 Currently ranked 7th largest SBA lender nationally (source: SBA-12/31/15) Nationwide lender Multiple winner of the SBA “Lender of the Year” award Loan amounts between $20k and $5M

SBA Loan Types Celtic Express: 7(a) Small Loans and Export : $20k - $150k SBA 7(a): $200k - $5M

SBA 7(a) Loans Loan Amounts: $200k to $5M Loan-to-Value: Up to 90% LTV Dependent on deal strength and property type Must meet SBA fully secured rule for all available collateral pledged Loan Terms: Real Estate - 25 years Equipment - 10 years Working Capital - 10 years Interest Rate: Prime + 2.75%, adjusting calendar quarterly Prepayment Penalty: Loans over 15-year term 5%-3%-1%-0%

Job Creation Capital Formation Economic Impact CELTIC EXPRESS What can Celtic Express do for Your SBDC? Job Creation Capital Formation Economic Impact

Celtic Express Loans Loan Amounts: $20k to $150k Collateral: Loans from $26k to $150k require a best available lien on business assets If leased property – must have options to extend lease for at least 10 years and landlord must sign Celtic’s Landlord Waiver and Consent form. Term & Amortization: 10-year fully amortized loan Less documentation than traditional SBA loans Use of Proceeds: Working Capital for general operating expenses

Celtic Express Loans Most SBA eligible businesses are eligible…no special qualifiers Loan-to-value or other collateral ratios are not considered as part of the underwriting process

Export Express Loan Program Business must have been in operation for at least 12 months generating 12 months of revenue No start-up businesses Business must either already export products or intend to export products with loan proceeds 70% of loan proceeds must help establish or expand upon new foreign markets Business must be a U.S. business. Cannot use funds to establish operations in another country

Export Express Benefits No lien on personal real estate No UCC filing on business assets Export Express loans are unsecured up to $150K

Celtic Express Interest Rates 7(a) Small Loan Program Loans from $20,000 - $25,000 Prime + 4.75% Loans from $26,000 - $50,000 Prime + 3.75% Loans from $51,000 - $150,00 Prime + 2.75% Export Express Loan Program Loans from $20,000 - $50,000 Prime + 4.75% Loans from $51,000 - $150,000 Prime + 4.50%

Loan Costs Packaging Fee – Celtic Bank packaging fee as follows: Loans $20k to $50k - 3% of the loan amount not to exceed $550 Loans $51k to $100k - 2% of the loan amount not to exceed $1,000 Loans $101k to $150k - 2% of the loan amount not to exceed $1,500 SBA Guaranty Fee – 2.0% of the guaranteed portion of the loan. SBA Guaranty Fees have been waived for 2015. 85% guaranty on 7(a) Small Loan Program Loan Amount x .02 x .85 = SBA Guaranty Fee 90% guaranty on Export Express Loans Loan Amount x .02 x .90 = SBA Guaranty Fee Loan Payments – Auto draft from a business checking account at your local bank or credit union

Credit Analysis Fair Isaac SBSS credit scoring model Evaluating payment history Evaluating number of accounts Evaluating % of revolving balance available Evaluating personal debt-to-income ratio Evaluating business industry risk Evaluating time in business Evaluating other factors No magic personal credit score cut-off

Technical Assistance (TA) No longer required by SBA Strongly recommended and emphasized by Celtic Bank Business plan assistance Proper accounting Financial planning assistance Everything else TA providers do each and every day

Business History One Page History of Business Questionnaire Nature of Business Outlook How Will the Loan Benefit the Business Customer Profile Key Customers, Major Competitors, Geographic Area Major Suppliers List of Trade Association(s) or Regulatory Agencies Future Growth Plans Major Past Accomplishments Marketing Analysis and Strategy

Financial Projections Celtic Bank will provide an excel spreadsheet for financial projections This spreadsheet allows us to quickly review cash flow and debt coverage requirements for SBA compliance. Requires borrower to address personal salary sufficient to maintain reasonable personal debt to income ratio / Global Cash Flow

Eligibility and Restrictions Start–up businesses allowed Business must be able to begin operations at funding No business acquisitions No gas stations or other EPA sensitive properties or businesses No construction, renovation or build-outs Franchises must be on the SBA approved franchise registry Individuals with a criminal history must be cleared by both Celtic Bank and SBA’s 912 procedures

Ineligible Businesses Non-profit companies Passive income businesses – investment real estate, apartments, rental housing, or multi-tenant buildings Speculative real estate or speculative businesses Agricultural or farm businesses Companies using loan proceeds to establish operations overseas Businesses engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs Businesses with products or services that are sexual in nature Businesses engaged in lending Exceptions for mortgage brokerage business and insurance agencies

Ineligible Businesses – Cont. Businesses with revenue derived from gambling Businesses with pyramid sales and distribution Businesses which restrict patronage Consumer and marketing cooperatives Businesses engaged in lobbying activities SBA loan packagers Businesses or small business owners who have previously defaulted on a government guaranteed or direct loan and created a prior loss to the government

Celtic Express Process Simple application Submit completed and signed application Quick approvals (no loan committee approvals required) Typical turnaround time for initial credit screening is 24 hours Checklist of required documentation and due diligence items are sent to small business owner(s) upon initial credit clearance Business plan Financial projections for 2 full years on a monthly basis Executed 4506T to enable us to verify income with tax filings Licensing from federal, state, and local government agencies as necessary Business entity documentation

Celtic Express Process Proof of insurance Proof of equity, if required Executed copy of lease agreement Once all required documentation is submitted, a final loan decision is made Loan is assigned to a closer to get any remaining items needed, prepare closing documents and get them executed. Funds are wired to borrowers business checking account.

Celtic Express Loan applications up to $150,000 www.celticbank.com/express 1-866-644-0042

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