1. Celtic Express Loans Product Overview
Celtic bank
Celtic Express Loans Product Overview

2. 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

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

4. 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 %, adjusting calendar quarterly
Prepayment Penalty: Loans over 15-year term 5%-3%-1%-0%

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

6. 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

7. 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

8. 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

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

10. Celtic Express Interest Rates
7(a) Small Loan Program
Loans from $20,000 - $25,000 Prime %
Loans from $26,000 - $50,000 Prime %
Loans from $51,000 - $150,00 Prime %
Export Express Loan Program
Loans from $20,000 - $50,000 Prime %
Loans from $51,000 - $150,000 Prime %

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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.

21. Celtic Express
Loan applications up to $150,

22. Q & A