Business Outline:
Jack is the owner of a construction company in New York, NY. As Jack’s company grew, he realized he needed more capital to expand his business. While Jack felt prepared to apply for the SBA 7(a) loan, he soon realized that he needed assistance with organizing his company’s books. Jack’s loan underwriter introduced him to NEWITY’s bookkeeping partner, Xendoo, to support Jack’s business through the loan application process and beyond.
This case study is based on a real NEWITY Member and follows the business’ SBA 7(a) loan application and experience with Xendoo. Note, some details have been changed for privacy.
Over the past three years, Jack has seen his business grow significantly as he began taking on more and larger projects. As his business grew, Jack realized that he needed additional funding to support an expansion. Jack decided the best option for his business was obtaining an SBA 7(a) loan for its longer terms and lower interest rates.
While Jack was browsing SBA lenders online, he found NEWITY, who offers SBA 7(a) loans up to $500,000. After viewing NEWITY’s social media and watching testimonials of past clients, he decided to apply and see how much funding he was eligible to receive.
Step One: Create Your Account
Jack went to the NEWITY Portal, created his account and entered basic personal and business information.
Step Two: Qualify Your Business
Jack made sure to double check the requirements to qualify for the SBA 7(a) loan:
- U.S.- based location and operations
- Owner supported / owner funded
- Eligible per SBA requirements
After seeing that he met those first qualifications, Jack moved forward with his application.
Step Three: Submit Your Application
After clicking “Apply for a New Loan,” Jack entered more specific business information regarding revenue, business structure, and owner information. After completing the application, Jack saw that his business met all preliminary eligibility requirements and was eligible for $215,000. Jack was thrilled with the potential loan amount and decided to move forward with NEWITY to complete the loan underwriting process.
Step Four: Gather Important Documents
Jack found NEWITY’s document checklist prior to his application and he felt prepared to upload his documents to the application. After uploading all documents he had prepared, Jack realized that he needed to skip some documents as they were not as organized as he previously had thought.
After submitting the SBA 7(a) application outside of a few missing documents, Jack was assigned to Erika, a NEWITY Relationship Manager. While Erika oversees the completion of Jack’s application through to funding, she also offered to answer any questions and initially review his application.
Step Five: Review
After Erika’s review, Jack’s application was sent to his Underwriter, Grace. A few days after submitting his application, Grace reached out regarding Jack’s business documents. Grace and Jack discussed his missing documents as well as organization challenges with others – even after manual data entry. Jack admitted to Grace that he was not sure how he could quickly resolve these issues; Grace recommended Jack look into Xendoo, NEWITY’s partner for small business accounting and bookkeeping, not only to organize his financial data, but to speed up the review stage of his application.
While Jack was initially hesitant about working with an online bookkeeping service, he quickly realized that Xendoo was an excellent choice for his needs. Xendoo assigned a dedicated accountant to work with Jack and they helped him organize and prepare all financial statements. By working with Xendoo, Jack felt confident that his documents were accurate, organized, and presented in a professional manner.
After Jack submitted the updated documents Xendoo put together, his application was quickly passed onto his dedicated Credit Manager, Matt, to complete his 7(a) loan underwriting process.
Matt did not require any further information before approving the application, so Jack’s application was sent to the Small Business Association (SBA) for review.
Step Six: Approval and Documentation
After one week, Jack received an email – and it was good news! Jack’s SBA 7(a) loan passed all reviews and was approved for the full $215,000 in funding.
Step Seven: Closing and Funding
Jack then received and e-signed his loan documentation with NEWITY’s closing team. Within four days of signing his loan documents, Jack received his 7(a) loan funds that he quickly used to expand his business and sustain growth.
Jack was impressed with the professionalism of NEWITY and Xendoo, and felt their assistance was instrumental in helping him navigate the SBA 7(a) loan application process. For Jack, the loan approval was a critical milestone that provided him with the working capital he needed to continue to grow his construction business.
One of the biggest advantages of working with NEWITY and Xendoo was the personal support. At both NEWITY and Xendoo, Jack met with specialists that were dedicated to his account and could explain each step of the process.
NEWITY’s personalized approach to the SBA 7(a) loan process gave Jack the opportunity to get organized and get funded. To learn how much your business could receive through a 7(a) loan, log in and get started.