(A) Initial meeting. The initial meeting that the RLP Manager will conduct with a potential borrower will be to determine eligibility, generally discuss the project, and explain the application process and needed information. At this point, projects which are ineligible or which do not look strong should be referred to proper funding sources or discouraged from applying. The Loan Manager will indicate that the following items will be required from the applicant prior to the next meeting:
(1) A brief description of the request, including total project costs, amount of loan requested, purpose of loan and terms requested;
(2) Three-year historic financial statements, if applicable;
(3) Financial data, five-year pro forma projections;
(4) An economic impact statement, including the number and type of jobs to be retained and/or created at the end of two years;
(5) A market/business plan delineated past performance and assumptions used as the basis for sales projections; and
(6) Any other items requested of applicant by the RLF Manager or Board.
(B) Loan application process.
(1) The Loan Fund Manager and the potential borrower will take a first cut at structuring the loan package. The borrower will be issued full information on the loan selection criteria and full information regarding standard conditions and federally-required assistance and conditions.
(2) Upon the determination of applicant eligibility, the borrower will complete the loan application form. In conjunction with these cited standard forms, the RLF Board of Directors shall request the following information, much of which will be included as part of the applicant’s business plan: Note: The standard DLG approval for use request. Exhibit G-6 (excluding certification) can be used in this procedure.
(a) Financial information, where relevant, which shall include:
1. Current audited financial statement, including balance sheets, income statements, with auditors’ footnotes and supporting statements for the applicant’s three most recent fiscal years, where applicable, and audited consolidated financial and income statements, with auditors’ footnotes, of any parent company for the three most recent fiscal years, also where applicable;
2. Most recent interim financial statements of the applicant, and, if applicable, of its parent company, certified by officers of the respective companies and maintained current during the loan application process; and
3. Project pro forma balance sheets, income statements, cash flow and supporting statements of the applicant. Such statements and balance sheets should reflect the applicant’s ability to repay debt principal out of earnings within the first five years of operation.
(b) Such non-financial information as the RLF Board of Directors deems necessary to substantiate the pro forma projections. These may include, but not be limited to:
1. Estimates, firm quotations, receipts, contracts, orders, invoices, leases or equivalent documentation from architects, engineers, contractors, subcontractors, materials suppliers, lessors or others involved in the sale, lease or construction of fixed assets, if any, for applicant’s project, including schedules of implementation;
2. Any backup information regarding the applicant’s operating costs, including projected employment by job category and applicable wage rate, cost and availability of raw materials and energy;
3. General information about company management capabilities, including resumes of top management and detailed marketing strategies;
4. Such additional information as the RLF Board of Directors may require regarding collateral, appraisals, valuations of non profit assets and guarantees;
5. Completed applications; and
6. Signed statement of assurances.
(Res. passed 12-27-1993)