Product: Payday loan, title loan, or personal loan

O/A XX/XX/XXXX, I met with XXXX XXXX XXXX Vice President Branch Manager at Banner Bank in XXXX XXXX California to secure a small business loan for a XXXX XXXX XXXX  XXXX XXXX XXXX XXXX XXXX During our initial meeting, XXXX XXXX explained the difficulties new restauranteurs faced securing credit, one being the nature of the business and in my case, lack of experience. Fortunately, he said that with my skills as a XXXX Veteran, there was a possibility that I may prevail in receiving funding that others may have not. I provided him with the initial documents that he requested and waited for his response. 

On XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX informed me I had met the initial screening criteria and that although I was a XXXX XXXX, Banner would proceed with the loan application process. Large in part to what he said were strong financials. I filled out the loan application and provided him with updated documents. I also opened a Banner Business account at his suggestion because he said that would look favorable to the loan officer. 

Throughout the month I updated him on changes to my business plan. The largest being a drop in construction costs by {$150000.00}. With each new update, he said that he would note the adjustments in my loan application. 

On XX/XX/XXXX, I met with XXXX XXXX, and he informed me that Banner Bank denied the loan due to my debt coverage service ratio. XXXX XXXX explained the SBA standard was 1.25, Banner Banks was 1.4 and mine was only XXXX I asked him to provide me with the calculations, however, he did not. While I was unfamiliar with the ratio, he knew that I had an XXXX from XXXX University and with a little research could understand the calculation, yet he said it was too difficult for me to comprehend. 

As the conversation went on, I pointed out to him that although I had provided him with updated figures, he had erroneously used the original infill costs in his calculations. I also explained that my monthly income had increased and asked if that would change my coverage ratio. He said that he would inform the loan officer of the changes and that he would update me the following week if that would change the banks response. On XXXX XXXX, regardless of my updated figures, he emailed me that I was denied. XXXX XXXX expressed extreme remorse and said that he would work with a non-profit agency where he served on the board to help me obtain funding. 

I was shocked. Until that point, although he did not say definitively that I would be approved, he did say that I was a great candidate, and that he would be surprised if I was denied. In our conversations about my chances, I would say If I am approved and he would respond You mean when you are approved. 

While I received my initial declination via mail at approximately the same time, I continued to request a more detailed explanation. From the moment and the way XXXX XXXX spoke to me in his office, I did not think that his calculation of my debt service coverage ratio was legitimate. Frankly, I did not believe that XXXX XXXX was being truthful. He was evasive in providing me with a more detailed denial reason and barely looked me in the eye. His continued reassurance to me that he was remorseful and that he would work with other lenders to help me secure a loan seemed disingenuous. 

As I waited for the second denial letter, I started working with another agency for a loan. Within hours of sending the loan officer my business plan, he responded with a slew of questions and suggestions about my profit loss statement, none of which XXXX XXXX raised. That was when I realized I made simple XXXX formatting errors which made me question whether XXXX XXXX or his loan officer read the plan or planned to deny my request regardless of my qualifications. 

After several requests, on XX/XX/XXXX XXXX XXXX sent me a second denial letter which stated I was denied for the following reasons : personal net worth, debt service coverage ratio, and start-up/length of time in business. Since he had told me and another colleague previously that I was denied solely based on my coverage ratio, I asked for the third party to verify that in writing. 

My net worth far exceeds the amount requested ; I requested {$400000.00} and my net worth is over {$890000.00}. As for being a new start-up, XXXX XXXX said in XXXX that before Banner Bank would even proceed with my loan request, I had to pass the banks initial screening about being a start-up business which he said I met. As for the debt service coverage ratio, he did not provide his calculations, which again makes me question the true value.