WHY
The term sheet is your first official look at the loan offer. It outlines the key terms—amount, interest rate, repayment schedule—before the bank finalizes everything.
The SBA requires your signature here to confirm you understand the basics of the loan. Nothing’s locked in until underwriting finishes, but this gets things moving.
WHAT
A short 1–2 page document that covers:
- Loan amount and term (usually 10 years)
- Interest rate and payment amount
- SBA guarantee info
- A few basic conditions (like needing to complete underwriting docs)
This is not a binding contract. It just shows you’re serious about moving forward with the loan based on the stated terms.
HOW
- We’ll send this to you via DocuSign or PDF.
- Here is the link to a blank PDF just in case
- Estimated to read and sign - 10 minutes
- Example term sheet redacted:
📣 Pro Tips:
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Double-check your business name and loan amount—those are the two most common places where typos happen.
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If you see something you don’t understand, ask us before signing—we’ll walk you through it in plain English.
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Signing doesn’t lock you in—it just shows you’re moving forward in good faith.
FAQ – Term Sheet
Q: Is this a binding agreement?
A: No. It’s a non-binding summary of the proposed loan terms—it doesn’t finalize the loan.
Q: Can the terms change later?
A: Sometimes. If something comes up during underwriting (like lower revenue or high debt), the bank might adjust the rate or loan amount. We’ll always keep you in the loop.
Q: What if I have questions about what something means?
A: Just ask us. We’re here to break it down for you in plain English—no jargon, no pressure.
Q: What happens after I sign it?
A: The bank begins formal underwriting and reviews your full file. This keeps the process moving toward approval.