When refinancing, the 7(a) Lender ensures the new installment is at least 10 percent lower than the existing installments in aggregate (or than the expected payment within 12 months under escalating terms), except for demand or balloon debt, business credit cards and HELOCs, and revolving lines not being renewed or restructured. Its application includes a written analysis of why the debt was incurred, why the refinancing does not pay a creditor able to sustain a loss, why the debt is being restructured and no longer meets the Applicant's needs, how the new loan improves the Applicant's condition, and an itemization of creditors receiving the SOP's threshold amount or more and any SBA loan refinanced; it keeps copies of the notes, security agreements, leases and latest credit card statements (sending them with non-delegated applications), and names the refinancing and itemization in the Terms and Conditions use of proceeds. 7(a) Small and Express loans need no written memorandum but keep the support. Program limits apply: MARC only refinances working capital debt; Working Capital CAPLines only short-term revolving debt that is then terminated, with a sufficient borrowing base, comparable collateral and a presumption of loss shifting on early default of same-institution refinancing; Contract, Seasonal and Builders CAPLines refinance nothing; EWCP refinances only export-supported debt, terminated, with collateral transferred.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.