Active loan requests requiring credit analysis
| Borrower | Request | Status | Priority | Due Date | Relationship | |
|---|---|---|---|---|---|---|
|
Midwest Manufacturing Inc.
Precision Components — Aerospace & Automotive
|
$3,500,000
Term Loan — Expansion & Equipment
|
Ready for Analysis | High | Jan 24, 2026 | Existing — 3 yrs | |
|
Coastal Healthcare Group
Healthcare Services
|
$5,000,000
Line of Credit — Working Capital
|
Docs Pending | High | Jan 25, 2026 | New | |
|
Summit Logistics LLC
Transportation & Warehousing
|
$1,800,000
Term Loan — Fleet Expansion
|
Under Review | Medium | Jan 28, 2026 | Existing — 2 yrs | |
|
Prairie Agriculture Co.
Agriculture & Farming
|
$4,200,000
Operating Line — Seasonal
|
Approved | Normal | Jan 30, 2026 | Existing — 8 yrs | |
|
Coastal Seafood Distributors
Food Distribution — Seafood & Specialty
|
$1,800,000
Working Capital LOC — Seasonal
|
Ready for Analysis | High | Jan 26, 2026 | Existing — 5 yrs |
$3,500,000 Term Loan — Expansion & Equipment Financing
Precision metal components for aerospace and automotive OEMs
Midwest Manufacturing Inc. — $3,500,000 Term Loan
$3,500,000 Term Loan — Expansion & Equipment
The borrower demonstrates a genuine turnaround with improving financial metrics and strong management commitment. However, 5 undisclosed findings require mitigation through enhanced structure and monitoring.
Midwest Manufacturing Inc. — Term Loan Request
Midwest Manufacturing Inc. is requesting a $3,500,000 term loan to finance equipment expansion and facility improvements. The Borrower is an existing customer with a 3-year relationship and clean payment history on their $500K line of credit.
The Borrower experienced significant financial stress in 2022-2023 due to supply chain disruptions and the loss of a key customer. However, management has executed a successful turnaround with revenue growing 16% in 2025 and EBITDA margins recovering to 10.6%.
During our enhanced due diligence, cmemo AI identified four material issues not disclosed on the loan application that require mitigation through deal structure and enhanced monitoring. Subject to the conditions outlined below, we recommend approval.
| Metric | 2022 | 2023 | 2024 | 2025 | Trend |
|---|---|---|---|---|---|
| Revenue | $14.2M | $12.1M | $15.8M | $18.4M | ↑ Recovering |
| EBITDA | $980K | $340K | $1.4M | $1.95M | ↑ Recovering |
| EBITDA Margin | 6.9% | 2.8% | 8.9% | 10.6% | ↑ Improving |
| DSCR | 1.08x | 0.72x | 1.24x | 1.41x | ↑ Improving |
| Debt/EBITDA | 2.45x | 4.12x | 2.18x | 1.79x | ↓ Improving |
| D&B PAYDEX | 76 | 68 | 78 | 71 | ↓ Caution |
The Borrower demonstrates a genuine turnaround with improving financial metrics and strong management commitment (evidenced by clean payment history through the downturn). However, the undisclosed findings require mitigation. Subject to the conditions below, we recommend approval at Risk Rating 5 with enhanced monitoring.
| Loan Amount | $3,500,000 |
| Term | 60 months |
| Interest Rate | 7.75% Fixed (includes 50 bps risk premium) |
| Monthly Payment | $70,284 |
| Collateral | Equipment (UCC-1 filing on new machinery) |
| Guarantee | Personal guarantee of principal owner (>20%) |
| Holdback | $100,000 litigation reserve (released upon resolution) |
1. Factor Resolution: Prior to funding, Borrower must provide either (a) subordination agreement from Velocity Capital Partners, or (b) payoff of factoring arrangement from loan proceeds with UCC termination.
2. Customer Concentration Covenant: Reduce revenue concentration from any single customer to below 35% within 18 months. Quarterly reporting on customer mix required.
3. Litigation Reserve: $100,000 holdback from loan proceeds until wrongful termination lawsuit is resolved or reserved on balance sheet.
4. Enhanced Reporting: Quarterly financial statements within 45 days of quarter end (vs. standard annual requirement). Annual personal financial statement from guarantor.
5. Financial Covenants: Minimum DSCR of 1.20x and maximum Debt/EBITDA of 3.0x, tested quarterly.
January 2025 · Real-time credit memo performance insights
| LOAN TYPE | COUNT | VOLUME |
|---|---|---|
| C&I Term Loans | 42 | $124M |
| CRE | 35 | $98M |
| Lines of Credit | 28 | $67M |
| Equipment Finance | 24 | $42M |
| SBA Loans | 18 | $31M |
| RISK TYPE | FOUND | % OF DEALS |
|---|---|---|
| Undisclosed Liens | 34 | 23% |
| Financial Inconsistencies | 28 | 19% |
| Ownership Changes | 19 | 13% |
| Litigation/Legal | 12 | 8% |
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$1,800,000 Working Capital LOC — Seasonal Inventory Financing
Premium seafood distribution to restaurants and retailers across the Gulf Coast
Coastal Seafood Distributors — $1,800,000 Working Capital LOC
$1,800,000 Working Capital LOC — Seasonal Inventory
Strong operational metrics and 5-year relationship history support approval. However, 5 findings require monitoring conditions given import tariff exposure and FDA compliance timing.
Coastal Seafood Distributors — Working Capital Line of Credit
Coastal Seafood Distributors requests a $1,800,000 revolving line of credit to support seasonal inventory financing. The company is a well-established premium seafood distributor serving restaurants and retailers across the Gulf Coast region, with 13 years of operating history and 5 years of banking relationship with First Community Bank.
The request represents a $1,050,000 increase from the current $750,000 facility to support revenue growth (54% increase since 2022) and expanded cold storage capacity. The borrower demonstrates strong operational metrics including 6.2x inventory turns (above 5.1x industry average) and maintains an excellent 60-month payment history with no delinquencies.
Recommendation: Approve with enhanced monitoring conditions to address FDA compliance history, import tariff exposure, and restaurant sector concentration risk.
| Metric | 2023 | 2024 | 2025 | Trend |
|---|---|---|---|---|
| Revenue | $9.4M | $11.1M | $12.6M | ↑ +13.5% |
| Gross Margin | 14.8% | 15.6% | 16.1% | ↑ +50 bps |
| Net Income | $362K | $428K | $485K | ↑ +13.3% |
| Fixed Charge Coverage | 1.28x | 1.34x | 1.38x | ↑ Improving |
| Current Ratio | 1.48x | 1.51x | 1.52x | → Stable |
| DSO | 32 days | 30 days | 28 days | ↑ Improved |
| Facility Amount | $1,800,000 Revolving Line of Credit |
| Purpose | Seasonal working capital and inventory financing |
| Maturity | 24 months with annual review |
| Interest Rate | Prime + 1.25% (currently 9.75%) |
| Collateral | First priority security interest in inventory and accounts receivable; advance rates: 70% eligible inventory, 80% eligible A/R |
| Guarantee | Personal guarantee of Michael Torres (51% owner) |
| Covenants | Minimum Fixed Charge Coverage 1.20x; Maximum import concentration 40%; Monthly inventory reporting; Annual FDA compliance certificate |
| Fees | 0.50% commitment fee on unused portion; $4,500 annual facility fee |
Based on the borrower's strong operational performance, excellent payment history, improving financial metrics, and manageable risk profile, this credit request is recommended for APPROVAL subject to the conditions outlined above.
The proposed monitoring covenants adequately address identified risks including FDA compliance history, import tariff exposure, and restaurant sector concentration. The collateral structure provides appropriate coverage for a working capital facility of this nature.