Modern business verification requires real-time access to critical business data. Cobalt Intelligence's Secretary of State API streamlines this process by directly integrating with state databases to deliver actionable insights for lenders and financial institutions. Below, we address key considerations for leveraging this technology effectively.

Availability and Retrieval

1. Data Access

Cobalt's API provides real-time access to business data points present on Secretary of State websites, including information often found in Certificates of Good Standing and annual reports. The API captures screenshots of official state records as they appear on state websites, providing visual evidence of the data at the time of access. Organization documents are specifically available in 18 different states.

2. State-Specific Availability

• Supported States: Real-time data access is available across all 50 states, with Cobalt connecting directly to Secretary of State databases for current business information.
• Varying Document Access: The availability of specific documents varies by state, depending on each state's digital infrastructure and what they make available online.

3. Historical vs. Current Data

The API primarily provides the most recent data available on Secretary of State websites in real-time. Access to historical information depends on what each state maintains and makes digitally available, with states like Arizona and North Carolina offering some historical certificate data.

4. Available Information

The API provides access to various business entity verification data, including:

• Business status information (e.g., "Active", "In Good Standing")
• Filing dates and historical changes
• Entity type and formation data
• Screenshots of state records as they appear online

Note: For UCC filing details, Cobalt offers a separate UCC Filings API with coverage in 11 states.

Cobalt Intelligence Secretary of State API

Content and Format

1. Standardized Output

• Data Points: Extracted details include business name, status, filing dates, and jurisdiction, delivered in a structured format that eliminates manual data entry and reduces error risk.
• Format: Business verification data is returned in JSON format for machine readability, with timestamped screenshots of official state records serving as primary source evidence. Direct document availability varies by state and depends on each state's online portal capabilities.

2. Searchability

• The API provides structured business status data (such as "Active" or "Dissolved") as discrete fields, enabling programmatic filtering and flagging of entities based on their compliance status.

Use Cases

1. Risk Mitigation for Lenders

• Loan Requirements: Majority of lenders require verification of good standing to confirm compliance and operational legitimacy. The API's real-time status verification significantly reduces the risk of funding non-compliant businesses.
• KYB/KYC: The API integrates into automated due diligence workflows to flag entities with concerning statuses like "Admin Dissolved" or "Revoked", providing comprehensive business information including officer data and registered agent details.

2. Operational Verification

• Foreign Entities: The API provides status information across all 50 states, identifying statuses like "Withdrawn" that indicate a company's operational legitimacy within specific jurisdictions.
• Mergers & Acquisitions: The API provides access to current business standing and available historical filing information. Note that access to historical data varies significantly by state (with Arizona and North Carolina mentioned as examples with historical data access).

Data Accuracy and Reliability

1. Live Verification

• Business data is retrieved directly from state websites in real-time, with timestamped screenshots providing verifiable audit trails of the information's availability at a specific time.
• A confidence score (0-1) indicates match accuracy for business names, helping users assess reliability when dealing with name variations or typos.

2. Discrepancy Handling

• The provision of real-time data and timestamped screenshots empowers lenders to conduct efficient manual verification when discrepancies are suspected, with screenshots serving as definitive records of information available at the time of API access.

Integration

1. Workflow Automation

• CRM Integration: The API's structured data format facilitates integration with CRM systems like Salesforce or HubSpot, allowing business verification data to be linked to business profiles through custom implementation.
• Batch Processing: Async endpoints efficiently process thousands of verification requests daily, utilizing callback URLs for seamless integration into high-throughput workflows.

2. Document Processing

• Structured Data: The API delivers key business information in structured JSON format for direct integration with underwriting systems.
• Compliance Support: Timestamped screenshots and real-time data from primary sources enable lenders to establish robust audit trails for regulatory compliance within their own infrastructure.

Technical Considerations

1. File Handling

• Document Access: The API retrieves visual representations of official records as they appear on state websites, primarily through screenshots that capture the information in its native digital format.
• Format Flexibility: The API handles various document formats used by different state portals, adapting to each state's technological infrastructure.

2. Latency Management

• Real-time Priority: The API primarily connects directly to Secretary of State databases in real-time for the most accurate and current business information.
• Cache Optimization: A cached database serves as a backup when state sites are down or as an optional "cache-first approach" to improve response times when appropriate.
• Hybrid Approach: Users can toggle between live searches and cached data, balancing speed and recency based on specific verification requirements.

Limitations

1. State Coverage

• Varying Accessibility: While the API strives for comprehensive coverage across all 50 states and D.C., the nature of state-level digital infrastructure means that access and available information can differ by jurisdiction.
• Adaptation Strategy: Cobalt actively works to maximize data retrieval from all jurisdictions, adapting to the specific capabilities and limitations of each state's system.
• Alternative Solutions: When digital access is limited in certain states, the API provides the best available data while indicating where additional verification might be necessary.

2. Historical Data Availability

• Digitization Variance: The availability of historical records through the API is contingent on each state's efforts to digitize and make older records accessible online.
• Recent Records: For current and recent business information, which is most critical for lending decisions, the API provides reliable and comprehensive access across most jurisdictions.

Conclusion

Cobalt's API transforms business verification from a manual bottleneck into a scalable, automated process. While varying state systems present some challenges, its real-time access to official business data ensures lenders can make decisions with confidence, backed by state-verified information. For institutions prioritizing compliance and efficiency, integrating this API has been shown to reduce verification times by up to 90% for some lenders while enhancing risk assessment accuracy through direct access to primary-source data.

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