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APRIL 24TH, 2024
ANNOUNCEMENTS
VENTURES
Upcoming Ventures Training
We are excited to announce the upcoming Ventures training sessions at no cost to you! Join us as we walk through enhancements to the financing area and how they transition over to ETRAN and the Terms & Conditions. Additionally, we will walk through FlashSpread 2.0 enhancements, and Tax Guard.
- 4/30/2024 at 10am PST: Register HERE
IRS W-9 newest version available
We have added the newest version of the IRS form W9 to Ventures. IRS Form W9 - No Address document will generate without information filled out in Line 5 and Line 6. We made some of the merging data logic "smarter" from the last version to be more in line with IRS Form instructions, depending on business entity type, listed below.
- Line 1: If borrower has a business entity type of Sole Proprietorship, Individual, or Single Member LLC, the name of either the entity or individual with highest % ownership will be merged. All other business entity types will merge Borrower Name.
- Line 3a: If borrower is a single member LLC type, nothing will be checked. The lender/borrower will need to indicate appropriate tax classification per IRS instructions.
- Part 1: If borrower has a business entity type of Sole Proprietorship, Individual, or Single Member LLC, the Tax ID of entity or individual from Line 1 will be listed in the appropriate SSN or EIN field. If borrower has a business entity type of Trust, the Tax ID of entity in the appropriate SSN or EIN field based off Entity’s Tax ID Type designation will be merged. All other business entity types will merge Tax ID into EIN field.
Credit Memo Menu Now Saves Previous Statement Selections For Generation
After our update last year to the Analysis > Credit Memo menu to allow lenders more flexibility to select and order financial statements within a credit memo, Ventures received feedback to bring back a previous feature that would save the most recent spread selection when coming back to the menu at a different time. We heard you and have brought this feature back. Users will now see their previously selected spreads and spread order listed in the “Financial Statements Selected” column (if any) when entering the Analysis > Credit Memo menu at a different time for the last 20 loan records they were in. Additionally, users previous selection of “Include Hyperlinks” checkbox will also be saved.
SBA Lenders - Borrower Contributions and Injections changes
We now support the ability to enter Borrower Injections on 504 Loans. Some changes we made apply to the injection screens on non-504 loans as well.
For 504 loan purposes, a Borrower Contribution is the standard contribution by a borrower for a 504 loan. It is typically 10% of the loan total, though it can be higher. A Borrower Injection occurs when SBA or the Lender requires the Borrower to inject additional funds to their business as a whole for reasons besides the standard Contribution. There are a variety of reasons the SBA or Lender may require the Borrower to do this (i.e. to meet an equity ratio). Borrower Injections can be entered on the Borrower Injection tab for 504 loans. See this KB article for more. See this KB article to help determine the difference between a Borrower Contribution and a Borrower Injection for 504 loans.
We also added a Borrower Injections content block to the SLPC Credit Memo to account for this data. If you are not using the Ventures SLPC Credit Memo, you can add that content block to your custom credit memo.
For non-504 loans, Providing Company/Contact and Receiving Company/Contact fields were added to all Injections on non-504 loans. Amortization Type and 1st Payment Due were added to non-504 borrowed type injections as well. Now, the experience should be more clear and consistent for all loan types.
SBA Lenders - Redwood Score Updates
We have updated our system to accept SBA Redwood score values. With the change in score type, we made some changes you may notice! What has not changed is the process to import the values, or when adding the values manually. For a refresher on how to import SBA Business Credit scores, please review our KB article here.
- Import Template changes - You will not be able to import an old SBPS template (9/30/2023 or earlier reports), only the new template starting with the most recent 12/31/2023 report.
- Menu and field name changes - The menus and fields previously referencing SBPS will now show "Business Credit Scores." There is a new field called "Score Type" to indicate which score the record is referring to within a loan.
- Report field name changes - The report category with related fields that referenced SBPS has been replaced with more generic labels, and the report field category renamed to "Loan Business Credit Scores."
- New Risk Rating formula - We added a “Servicing: Redwood Score” Risk Rating Formula Type. When used in a Risk Rating worksheet, it show the most recent “Redwood Score” within the record and ignore previous SBPS scores. The Servicing: SBPS Score formula will continue to pull in the most recent SBPS within a record. Your Site Administrator will need to create a new risk rating worksheet to include the new Redwood Score formula. The Site Administrator can review KB Creating a Risk Rating Template for more information on how to do this.
SBA Lenders - Key Missing Fields Added To Ventures Collateral Records Allowing Terms & Conditions Verbiage To Appear
We added checkboxes and a dollar amount field to the Lien Recording tab for the following ETRAN related Real Estate Collateral fields:
- Including Water Rights
- Including Assignment of Rents
- Shared Pari Passu
- Shared Pari Passu, Non-SBA Loan
- Pari Passu Amount
FlashSpread V2 Clients - Bulk Import of Statements Now Supported
We've added the capability to import many tax return documents at the same time and a financial statement period is created for each loan where Tax ID matches. You'll find this feature on the Utilities menu under Other Imports, labeled Financial Statements. We have an article covering the new bulk import feature here. For more information about FlashSpread 2.0, refer to the FlashSpread Knowledge Base article.
PAYMENTS
Received Date Has Been Changed To Posted Date
We renamed any reference to "Received Date" to "Posted Date" to help clarify what data to expect in the Payments module and in Reporting.
