Paintbrush works with Continental Bank, Member FDIC, to originate loans. To underwrite an applicant’s ability to repay, several factors are considered, including the risk of the individuals applying for the loan, the legitimacy of the business, and the ability of the personal guarantor to repay.
Personal information
For every partner of the business who owns more than 20%, the following information is required:
Full name
Email address
Phone number
Physical home address (no PO boxes, etc.)
Date of birth
Social security number
% ownership in the business
That information is used to verify:
Applicants are who they say they are (not fraudulent)
Applicants are legal age of majority
Eligibility to live and work in the United States
Not on any government watchlists
No record of financial crimes
No record of violent crimes in the last 10 years
At least 80% ownership of business is reported
Personal guarantor owns at least 50% of business
Occasionally you may be prompted to upload additional documents such as a driver's license or passport if we have trouble verifying this information.
Income & credit information
For the applicant who will act as the personal guarantor on the loan (the one who will pay back at 15% of their income if the business fails to repay the loan), additional data will be verified. You will be asked to:
Connect your payroll history for the last 2 years, and/or
Upload a combination of W2s, 1099s, or paystubs if unable to connect your payroll history.
Those items, plus the personal information above is used to verify you:
Make at least $100k/year
Have history over 2 years showing consistent income levels
Have a credit score of 720 or higher
Have a debt-to-income ratio of 40% or less
Do not have any foreclosures or repossessions
Do not have any bankruptcies in the last 7 years
Do not have any judgments in the last 5 years adding up to more than $2,500
Do not have any liens in the last 5 years adding up to more than $2,500
Do not have and delinquencies greater than 60 days past due, collections, or charge-offs in the past 24 months.
Business Information
Finally, the legitimacy of the business needs to be verified. While it is not required to have a full business plan or prove the probability of success, the business does need to be registered and in good standing. You'll provide:
Business Name
Website (if available)
Business address (can be the same as the personal address if you don't have an office yet)
EIN/TIN
Business bank account
Business industry
Prior business debt
Currently Paintbrush Loans are only available to the following:
Corporations or LLCs registered in the United States
Businesses in good standing