All loans must meet requirements posted in KnowledgeOwl (KO). In the event of any conflict with this document, KO guidelines will govern. 11/17/2020
The following can be used to analyze the income stability. Obtain explanation(s) and/or additional documentation when
available to support the responses below. Examples include, but are not limited to, additional business bank
statements, current balance sheet, a month-to-month trending analysis, an updated business plan, internet searches,
current business receipts or contracts for new work.
A. Is there a demand for the produc
t or service currently offered by the business? ____ Yes ____ No
B. Do local / state orders (i.e. shelter in place) restrict the operation of the business? ____ Yes ____ No
C. Has there been an increase in cost or expenses related to maintaining the business? ____ Yes ____ No
D. If there is a decrease in income, can it be assumed that the income will:
• Go back to pre-COVID levels? ____ Yes ____ No
____ Temporary restrictions lifted and business will operate at full capacity.
• Continue at the lower amount? ____ Yes ____ No
____ The business has been modified to support continued business / income.
____ The decline was related to supply-chain issues, but have been resolved.
____ The business is not operating at full capacity (less employees).
E. Does the business have documented liquid assets or access to additional capital (do not include SBA Payroll
Protection Plan (PPP) or similar COVID-19 related programs)? ____ Yes ____ No
d comments to support business stability / instability.
If the self-employed income can be classified as stable, the income can be used as follows. Select one.
____ Income is the same or has increased (YTD vs tax returns). Use standard calculation (Step 2).
____ Income has declined. Use the YTD, based on P&L (Step 3).
If the income has declined and has not stabilized, the income cannot be included for qualifying.