Magazine article The CPA Journal

New Form for Small Business Loans

Magazine article The CPA Journal

New Form for Small Business Loans

Article excerpt

Robert Morris Associates' (RMA) Accounting Policy Committee and the AICPA's Technical Issues Committee of the Private Companies Practice Section (PCPS) introduced a new form to help small businesses gather financial and accounting information.

The two organizations developed the Business Credit Information Package (BCIP) in an attempt to create a uniform method of submitting financial information to lending officers. Although banks prefer GAAP presentations, lenders often receive the information in disparate forms. The BCIP offers an efficient, cost-effective alternative to tax returns or non-disclosure compilations and provides bankers with better information with which to make a lending decision.

Five forms comprise the BCIP:

* Request Letter. A checklist for the banker to communicate information needs, the request letter documents the banker's request for financial statements in the BCIP format.

* RMA Business Borrower Questionnaire. The questionnaire asks about a company's accounting practices and other pertinent facts needed to evaluate a loan. …

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