
Banking Applications Series

Small Business Loan Information Center
Suite E3422
601 Van Ness Avenue
San Francisco, California
                                    
                                    
                                    
                           SBA LOAN ESTIMATOR
                                                                         
                                                                         
                                             Quickly and Easily Discloses
                                                                         
                                                         MONTHLY PAYMENTS
                                                                         
                                                               MATURITIES
                                                                         
                                               ORIGINATION COSTS AND FEES
                                                                         
                                                                      and
                                                                         
                                              ALTERNATIVE PAYMENT OPTIONS
                                    
              COPYRIGHT (C) 1990-1992 WARD HARRINGTON/SBLIC
                          ALL RIGHTS RESERVED 
    THIS ABBREVIATED DOCUMENTATION AND ITS ACCOMPANYING SOFTWARE ARE
     PROTECTED UNDER UNITED STATES AND INTERNATIONAL COPYRIGHT LAW.
                                    
                                    
                                    
                                    

THE SBA LOAN ESTIMATOR is a fully configurable computer program
that will let you calculate and disclose REPAYMENT TERMS,
ORIGINATION COSTS AND FEES and ALTERNATIVE PAYMENT OPTIONS for
loans guaranteed by the U.S. Small Business Administration under
Section 7(a) of the Small Business Act of 1953.  

Under the SBA program, the maturity of a loan is governed by the
use of  the loan proceeds.  Since most loans involve more than
one use, the lender must calculate a hybrid maturity.  For
example, while the SBA will allow up to 25 years for repayment of
a loan to purchase real estate, less time will be available if
the loan also includes funds for purchase of furniture &
fixtures, working capital, and payment of the origination costs &
fees.  How much less time is determined by the relative
proportions of each use to the total amount of the loan. 
Further, the maximum permitted interest rate is governed by the
loan's maturity - the longer the term, the higher the rate - so
it is often to the lender's advantage to structure the loan for
the longest permitted repayment period.  Finally, the amount of
the SBA guaranty is governed not only by the use of proceeds
(funds used for refinancing may be guaranteed from a maximum of
80% to a minimum of zero) but also by the size of the loan.

These variables interact in a way that is burdensome to calculate
by hand.  By automating the calculation, THE SBA LOAN ESTIMATOR
lets you quickly and easily perform comparisons between different
financing scenarios, and it provides a comprehensive printed
report of each alternative to help you sell, and cross-sell, your
prospect.

TO USE THE PROGRAM, YOU NEED TO HAVE a computer capable of
running software written for the IBM Personal Computer with at
least 400 Kb of memory available for the program's use.  Most
IBM, IBM-compatible and Macintosh (using compatibility software)
computers are capable of running the program.  The program
automatically detects and adapts itself to the CPU, the Numeric
Co-processor (if you have one installed), and the amount and type
of available memory.  While THE SBA LOAN ESTIMATOR is designed to
run efficiently on modest equipment, it will take full advantage
of the capabilities of high-end hardware. 

Most monitors are automatically detected and compensated for, but
you may set the display colors as you wish.  Most printers are
supported; the program assumes that you will be using a standard
parallel printer attached to parallel printer port #1, but you
can specify alternative parallel or serial ports.

TO INSTALL THE PROGRAM FOR USE, copy the distribution files
(QUOTE.EXE and QUOTE.CFG) onto another floppy disk or onto your
hard disk.  If your computer has already been set up to run a
word processor, spreadsheet, or database program, you do not need
to do any additional installation.

TO RUN THE PROGRAM FOR THE FIRST TIME, change to the drive and
directory where your working copies of QUOTE.EXE and QUOTE.CFG
reside, type QUOTE  and hit the ENTER key.  This will bring up
the MAIN MENU screen.

Everything done by THE SBA LOAN ESTIMATOR is controlled by a menu
which appears in the top left part of the screen as well as on
the bottom of the screen where the menu choices are explained. 
To choose an option from the menu, simply type the first letter
of the option's name.

The MAIN MENU screen, however, lets you access hidden and semi-
hidden features, as well as the choices which are displayed.  We
will explain the hidden features shortly, but, for now, you will
want to use the semi-hidden feature, SETUP, to personalize the
program for your own use and to confirm four items which you will
need to change occasionally.

TO RUN SETUP from the MAIN MENU screen, type S and hit the ENTER
key.  You will see a screen divided into two sections: BUSINESS
CARD and MISCELLANEOUS.  A large pointer will be set opposite the
phrase Your Name.  Type your name as you want it to appear on
printed reports - your typing will be displayed in the upper left
corner of the screen and you may edit it by using the BACKSPACE
key and the cursor arrows.  When you have your name set up the
way you want it to be printed, hit the ENTER key.  This
procedure: type, edit in the upper left corner, and hit ENTER, is
how the program accepts all of the information you furnish.

The BUSINESS CARD section lets you add two message lines, such as
the name of your Bank, your address, your telephone number, or
whatever else you want to put on the printed reports.  

The MISCELLANEOUS section lets you enter infrequently-changed
information such as the usual packaging fee and miscellaneous
costs, the prime rate and the rate spread.  To accept the numbers
as they appear, just hit the ENTER key and the pointer will move
to the next item.  If you want to change any of these numbers,
just type them in the way you see them on the screen (for
numbers, you do not need to furnish dollar signs or commas; the
program knows to add them by itself).  The program uses a rate
spread of 2.75 initially; this means that you want the program to
calculate repayment based on Prime + 2.75 or the maximum
permitted rate, whichever is lower.  If you change the Rate
Spread to 1.00, then the program will use Prime + 1 or the
maximum permitted rate, whichever is lower.

When you have finished the Rate Spread item, the program will
save your old configuration file as QUOTE.BAK, and it will then
save your new configuration file as QUOTE.CFG.  Then it will
return you to the MAIN MENU screen. 

DAILY USE OF THE PROGRAM begins at the MAIN MENU screen.  By
typing C to CONTINUE, you move to a screen which asks you to
enter the customer's name as you want it to appear on the printed
reports.  When you have typed the customer's name and hit the
ENTER key, a menu will appear giving you the choice of  C to
CONTINUE or  Q to QUIT.  Type C to continue to the next screen.

This is the first of two screens titles HOW THE LOAN FUNDS WILL
BE USED.  You may enter totals in the blocks, or you may use
adding machine mode (for example, if the customer is buying three
trucks, each with a different price, you may enter, under
PURCHASE OF MACHINERY AND EQUIPMENT, something like
23500+28000+52300 and the program will use the total, or
$103,800, in that block.  You can add, subtract, multiply and
divide in adding machine mode.  At the end of this screen, a menu
appears with a new option - in addition to C for CONTINUE and Q
to QUIT, you may choose to type R to REVIEW.  This will take you
back to the beginning, so that you will be able to change any of
the numbers you have entered so far.

The second HOW THE LOAN FUNDS WILL BE USED screen begins to let
you do some creative tailoring.  Once you fill in the first four
items (PURCHASE OF INVENTORY, PAYMENT OF EXPENSES AND ACCOUNTS
PAYABLE, GENERAL WORKING CAPITAL and OTHER USES OF LOAN FUNDS)
the program will pop up an estimate of origination fees and
costs.  This estimate will usually be higher than the program's
final calculation of fees and costs, and you will be able to
adjust for the difference in a few steps.  For now, you can enter
a number (which can be zero, any portion of the estimate, or a
number as high as you like) as the amount to add to the loan to
accommodate fees and costs.

The next screen will display the amount of the loan, and ask you
for a REQUESTED REPAYMENT PERIOD (in years) and a DRAWDOWN PERIOD
(in months).  The program will calculate repayment on the number
you enter for the REQUESTED REPAYMENT PERIOD, or the maximum time
the SBA regulations will allow, whichever is less.  The program
will assume that you will charge the customer for interest only
on the actual amounts drawn down for the number of months entered
under DRAWDOWN PERIOD.  A drawdown period of zero means that you
will advance the whole loan in one lump sum at closing.  A
drawdown period of 1 month means that you will make several
advances within 30 days after closing.  Drawdown periods of 3-6
months are common, and are an excellent selling point since many
non-bank SBA lenders prefer to advance quickly, leaving the
customer to pay interest on money he has not used yet.

After you enter the drawdown period, the program presents the
RESULT SCREEN which lets you type V to VIEW a summary report of
the loan on your screen, P to PRINT the complete report on your
printer, R to REVIEW the numbers entered so far, or Q to QUIT. 
To fine-tune the loan, type V to VIEW the summary report, which
will show you the TOTAL AMOUNT of the loan, the actual
ORIGINATION FEES & COSTS (including the SBA Guaranty Fee of 2% of
the amount guaranteed), the FEE ALLOWANCE INCLUDED in the loan,
the MATURITY in years, the INITIAL INTEREST RATE, the INITIAL
RATE BASIS (as a number of points over Prime),  and the INITIAL
MONTHLY PAYMENT.  Asterisks call your attention to the FEE
ALLOWANCE and MATURITY lines, because you may want to adjust the
fee allowance higher or lower (it is best, in any event, to
adjust the total amount of the loan to an even number by
increasing or decreasing either or both of the working capital or
fee allowances) and you may want to adjust the maturity inward to
a non-fractional number of years (highly recommended).  To make
these, or any other adjustments, type R to REVIEW.

PRINTING REPORTS is usually as easy as typing P from the RESULT
SCREEN.  This will send the report to a printer attached to
Parallel Port #1 (unless you use a hidden command to change
that).  However, if your printer is not on, not ready, out of
paper, or jammed, the program may stall.  In that case, hit the
ESCAPE key.  Then, hold the ALT key and type G; this should give
you a menu that lets you choose to CONTINUE or QUIT.  If the ALT-
G solution does not work, use the "emergency exit" by hitting the
ESCAPE key and then holding down the ALT key while typing X to
exit the program.

TO USE THE HIDDEN COMMANDS, you must be at the MAIN MENU screen. 
Hold down the CONTROL key and hit the BREAK key (usually located
near the 9 on the numeric keypad).  The menu will disappear, and
you may use these hidden commands:

ALT + R to RECONFIGURE.  You will rarely, if ever, need to change
any of the numbers on the Reconfiguration screen.  Changing these
numbers incorrectly will make the program give incorrect results,
to proceed with caution.  Full documentation on this program,
including the meaning of each number in the RECONFIGURATION
screen, is available from SBLIC, Suite E3422, 601 Van Ness
Avenue, San Francisco CA 94102.

/V for VIDEO adjustment.  This will let you adjust the colors on
your screen to your liking; use your arrow keys and ENTER key to
make choices.

/W for WORKSHEET adjustment.  /WR lets you change the RECALC
option to Automatic if you have a fast computer.   /WGDP lets you
select printer interfaces and ports, and to set margins.

BEFORE YOU USE ANY OF THE HIDDEN COMMANDS, BE SURE THAT YOU HAVE
THE ORIGINAL QUOTE.EXE AND QUOTE.CFG FILES AVAILABLE.  If you
make a mistake with the hidden commands, you can recover by
copying your original QUOTE.EXE and QUOTE.CFG files to your
working disk or directory.  THE HIDDEN COMMANDS CAN, IF
INCORRECTLY USED, RENDER THE PROGRAM USELESS.  BY USING THEM ONLY
ON COPIES OF THE ORIGINAL FILES, YOU CAN ALWAYS START AGAIN FROM
THE BEGINNING.
For complete printed documentation, the latest edition of the
program, and information on other programs in the Banking
Applications series, send $20.00 to:

SBLIC
Suite E3422
601 Van Ness Avenue
San Francisco, CA 94102

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