Commercial Loan Closings

Eligibility determination is the process of evaluating whether a borrower and proposed transaction meet the lender’s credit policies and applicable legal requirements. This review may include the borrower’s business type, entity structure and authority, proposed use of proceeds, related-party relationships, licensing or regulatory considerations, and other conditions that must be satisfied before a loan can proceed.

Eligibility is the foundation of a commercial loan. An issue that is missed early can create challenges later, particularly if the lender needs to demonstrate that the transaction was properly qualified and documented. Careful analysis at the outset helps lenders identify potential concerns before significant time and resources are committed to the transaction.

Our firm helps lenders navigate eligibility requirements by reviewing the lender’s credit policies and applicable legal requirements, evaluating entity and related-party issues, and addressing transaction-specific eligibility questions. We help lenders identify and resolve potential concerns early so they can move forward with greater confidence.

Loan structuring is the process of developing terms that satisfy both the lender’s credit requirements and applicable legal requirements. Depending on the transaction, this may include evaluating the use of proceeds, maturity, collateral, equity or capital requirements, guaranties, and other material terms.

A well-structured loan helps ensure that the terms approved by the lender are consistent and enforceable. Inconsistencies involving the use of proceeds, collateral, equity requirements, or other material terms can create complications during closing or become collection concerns if the loan later defaults.

Our firm works with lenders to review proposed loan structures and identify requirements that may affect the transaction. We help reconcile the lender’s credit approval with the loan terms and address structural issues before they become closing or servicing concerns.

Due diligence is the review of the documents, searches, reports, and other information supporting a commercial loan transaction. Depending on the loan and collateral involved, this may include purchase agreements, leases, title commitments, surveys, environmental reports, lien and background searches, and organizational documents.

Due diligence gives lenders the information needed to evaluate the transaction, confirm collateral requirements, and document the basis for the loan. Identifying issues before closing can help prevent unresolved exceptions from carrying into the final loan file and reduce potential problems if the loan is later reviewed or enforced.

Our firm reviews transaction-specific due diligence, including third-party reports and entity documents, with the lender’s requirements in mind. We help identify potential issues, determine what may need to be addressed before closing, and help lenders maintain a complete and defensible loan file.

Loan documentation turns the approved transaction into an enforceable and properly documented loan. This includes preparing and reviewing loan agreements, notes, guaranties, security instruments, lien documents, and other closing documentation so that the documents accurately reflect the approved terms.

Accurate and consistent documentation is critical to protecting the lender’s rights. Loan documents should align with the approved terms, create enforceable obligations and liens, and demonstrate that required conditions were satisfied. Documentation deficiencies can create issues during servicing, collection, or enforcement.

Our firm prepares and reviews commercial loan documents and required lien instruments with an emphasis on accuracy, consistency, and enforceability. We help lenders assemble a closing package that reflects the approved transaction and supports a clear, organized loan file.

Loan closing is the point at which the transaction comes together. Closing involves confirming that applicable conditions have been satisfied, obtaining properly executed documents, addressing outstanding diligence items, and completing the steps necessary to establish and perfect the lender’s collateral position.

Closing errors can have consequences long after funds are disbursed. Missing documents, incomplete conditions, execution issues, or improperly perfected liens may increase risk to the lender and affect the enforceability of the loan or the priority of its liens. A deliberate closing process helps ensure that required steps are completed and properly documented.

Our firm assists lenders throughout the commercial loan closing process, from reviewing closing conditions and executed documents to coordinating post-closing lien filings. We work with the lender and other transaction parties to resolve issues efficiently and help bring the transaction to a well-documented close.

Funding and disbursement involve releasing loan proceeds in accordance with the approved transaction. Funds must be used for the approved purposes and supported by appropriate documentation, which may include invoices, settlement statements, evidence of equity or capital contribution, and other records demonstrating how proceeds were used.

Proper disbursement is an important component of protecting the lender’s position. Lenders should be able to demonstrate that loan proceeds were used as authorized and that required conditions were satisfied before funds were released. Inadequate documentation or improper use of proceeds can create significant issues if the loan is later reviewed or enforced.

Our firm assists lenders with funding and disbursement review as part of the closing and post-closing process. We help confirm that disbursements align with the approved transaction, required documentation is maintained, and potential discrepancies are addressed before they become larger concerns.