Announcement 19-0016: Documenting Business Bank Statements for Carrington Flexible Advantage Loans

Old Requirements

New Requirements

All parties listed on each bank account must be included as borrowers on the loan.

If the borrower is not 100% owner of the business, or multiple parties appear on a business bank account but are not borrowers on the loan, business records must be provided to prove the borrower’s percentage of ownership and entitlement to profits. Examples of acceptable documentation include:

·      Articles of Incorporation with stock ownership breakdown,

·      the business’s Operating Agreement,

·      a Corporate Resolution,

·      or letter from the company’s tax preparer.

Qualifying income must be multiplied by the percentage of profits that the borrower is entitled to.