Whether it was to overcome a challenge or to help your business grow, getting your loan is just the first step in a long-term relationship between you and Pursuit. The next part – everything that happens through your last payment – is just as important. There are things that you need to do, aside from making payments, to keep your loan in good standing. Here are answers to the most frequently asked loan questions we receive after the loan closes.
After your loan closes: Key points for you
One of the most important things to know is that communication with Pursuit has to continue after your loan closes, so expect to hear from us from time to time. We’ll often follow up with you to ensure that your loan was used for what it was meant for and that you aren’t running into problems. So that way, if you do run into a problem with your loan, we can work together to find a solution that works for you. These options may include a loan modification or even additional funding to see a project through to its proper completion.
Frequently asked loan questions: Requirements and general information
Q: My loan closed. What do I need to do?
A: There are monthly and annual steps to take to stay in compliance with your loan.
Monthly steps to stay in compliance with your loan include:
- Make your required monthly payments on time. That’s the most important step throughout your loan term.
Annual steps to stay in compliance with your loan include:
- Staying current on all of your tax liabilities and filing your tax returns. Then, submit copies of your tax returns to Pursuit, as required in your loan agreement.
- Keep current on the various insurance policies that you’re required to have in place for your loan. These may include, but aren’t limited to, worker’s comp, business liability, life insurance, and real estate insurance – and if it’s required by your loan agreement, be sure to submit current proof of insurance to Pursuit each year.
- For SBA 7(a) and SBA 504 loans, Pursuit also requires that you submit a personal financial statement and proof of the current insurance coverages that were required for your loan.
Q: What happens if there’s a significant change to my business?
A: Contact Pursuit before any significant change occurs, including but not limited to:
- Your business location changes.
- You’re considering a change in ownership – in this case, it’s important to discuss this change and how it could impact your loan before you move forward, because Pursuit requires that any owners with an ownership stake of 20% or more must personally guarantee the loan.
- You’re considering selling any business assets that may serve as collateral for your loan, because you may be required to pay down the balance of your business loan with the proceeds.
If you’re not certain whether a potential change is “significant,” contact Pursuit anyway. We can help and we’ll appreciate that you’re proactively reaching out to us!
Q: How do I get the current balance on my loan?
A: Your loan statement is mailed to the address on file each month. It details your outstanding balance and how the previous month’s payment was applied to principal and interest. If you haven’t received your monthly statement, please get in touch with us and a team member will get back to you in 1-2 business days with your current loan balance.
Q: How can I get a copy of my loan closing statement?
A: You should have received a copy of your closing statement after your loan closed but if you need another copy, we’re happy to provide it. Contact us, and a team member will get back to you in 1-2 business days.
Q: If my loan is paid off, when does Pursuit come off of the mortgage or lien?
A: As your payoff approaches, we’ll work with you to coordinate the discharge of any mortgages on your real estate or liens on your business personal property.
Frequently asked loan questions: Loan modification requests
Q: How long will it take to have my note modified?
A: All note modification inquiries are handled in the order they were received. Unfortunately, because we receive a high volume of inquiries and each request is different, we can’t accurately provide a time estimate.
Q: Am I eligible for a note modification?
A: Every payment modification is determined on a case-by-case basis and the best way to determine if you’re eligible is to fill out a request for a modification, which will be reviewed by our team. (One thing to note is that if you have a New York Forward loan, that loan program doesn’t allow payment modifications.)
Q: How long can I defer my payment(s) for?
A: These are determined on a case-by-case basis.
Q: What if I don’t qualify for a note modification?
A: If you don’t qualify for a note modification, you’re required to continue your loan payments per the terms of your loan agreement.
Frequently asked loan questions: Timelines and contacting Pursuit
Q: How long does it take to update my information after it’s submitted?
A: The timeline depends on the type of information. For example, if your mailing address changes, that’s a quick update. However, if the physical location of your business changes, then all related hardcopy documents and electronic files need to be updated, too. These kinds of updates take a bit longer.
Q: Why do I need to keep my information up to date?
A: There are a couple of reasons why we need to work together to ensure that your information is up to date. First, it’s important to ensure that your loan stays in agreement with our terms (and with the SBA, if applicable) and part of that means letting us know about changes.
Keeping your contact information and loan file updated also means that we can let you know about opportunities for your business including new grants or loan options, educational programs, and more. All of this makes it easier for us to help you and your business, whether you’re modifying your loan terms or exploring refinancing options.
Tips for borrower success
The moment your loan closes is the start of the next phase for your business and your relationship with Pursuit. Here are a few best practices to keep in mind:
- Every year, you’re required to send updated tax returns and financial statements. You’re also required to keep necessary insurances current and to send us copies of your renewals each year. Please contact us and we’ll update our file.
- If you have a question about your loan, take a look at the business resources on our website. You’ll find articles and videos covering a huge range of topics. It’s easily searchable and may have the answers you’re looking for.
Pursuit is with you at every step, throughout the life of your loan
If you have questions about your loan or how to stay in compliance, be sure to contact us right away. We’re here to support your success at every stage.