Your Agency Loan: Step by Step

We know that your time is valuable, so we strive to deliver an efficient and pleasant lending experience. This step-by-step guide provides you with insight into the key stages of applying for a loan with First Mid Bank & Trust Agency Finance.

Initial Discussion

This first conversation will be an introduction to you, your agency and your goals including your anticipated capital needs. We gather a few basic metrics of your agency at this point and gain an understanding of your expectations and objectives.


Our free application is simple and straightforward. Our online application enables you to provide us with general information about your agency including:

  • Name
  • Tax ID
  • Location
  • Ownership
  • Existing debt
  • Authorization to run a credit report
  • Summary of commission revenue

Once your application is completed, we ask for preliminary documentation to help us provide you with capital as quickly and efficiently as possible, starting with:

  • Credit application
  • Interim business financial statements for the current year
  • Business tax returns from the past three years
  • Personal tax returns from the past three years (for each individual owning more than 20% of the agency)
  • Personal financial statement (for each person with more than 20% ownership)

Preliminary Terms

At this point, we will discuss the preliminary terms including the length of loan, interest rate, fees and the general structure of your financing. In most cases, there are no upfront fees associated with this step.

Complete Underwriting

After the preliminary terms have been explained and agreed upon, we will proceed with underwriting the loan application. In some cases, we may request more information. This typically includes contracts with insurance companies and commission reports or statements. In certain cases, we may need further explanations of your financial statements or an entry on your credit report.

Submit for Credit Approval

We discuss your application and our underwriting to make sure everyone is on the same page. At this point, we will seek credit approval for the loan.

Collect CIP docs

We will collect Customer Identification Program (CIP) documents to confirm your identity and verify insurance licenses. Our loan structure requires a redirect of commission directly from carriers to cover loan payments, so we set up a new account at First Mid Bank & Trust to accept those commissions. Documents needed for this step include:

  • Insurance Licenses — Individual and Business
  • Driver’s License(s)
  • If incorporated (either LLC or S Corp), Articles of Organization and Operating Agreement or Partnership Agreement
  • If it’s a C Corp, Articles of Incorporation and Bylaws
  • Corporate Authorization Form

Loan Documents Prepared and Executed

When we’ve received the necessary documents from your agency, we will provide you with forms that need your signature and schedule a virtual closing with you.

Deposit Accounts Established

We set up at least one deposit account to receive any required commission assignment or deposits. These deposits allow us to establish automatic payments on your new loan. 

Other closing conditions

In certain transactions, such as an acquisition, we need to receive additional information prior to funding the loan. A copy of an executed purchase agreement or seller note is one example of the type of document we may need.


Upon completion of all closing conditions, we disburse the loan proceeds to the appropriate parties.

Every situation is different, and we work diligently to be responsive to your timeline. You play an important role in the processing pace when you provide the requested information in a timely manner. Within 30-60 days, you could be fully funded and ready to invest back into your agency. Of course, this varies by agency due to a variety of factors that go into our 10-step loan process. Under certain circumstances, our Quick Application may better suit your needs. You can learn more in the Special Programs section of our Products.