(A) Initial meeting. The initial meeting that the RLF 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 explain 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 cost, loan amount requested, purpose of loan, terms requested, business plan and marketing study, if available.
(2) The Loan Fund Manager and the potential borrower will make the first attempt at structuring the financing of the project.
(3) An economic impact statement, including the number and type of jobs to be retained or created at the end of two years.
(4) Historical financial data, both company and personal.
(5) Three-year financial projections or pro forma.
(6) Resumes of key personnel.
(7) Any other items requested of applicant by the RLF Manager of Board.
(B) Loan application process. Upon determination of applicant eligibility, the borrower will complete the loan application form. Prior to this, the borrower will have been issued full information on the loan selection criteria and standard conditions and federally required assurances and conditions. In conjunction with the above 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.
(1) Financial information, where relevant, which shall include:
(a) Current audited financial statement, including balance sheets, income statement with auditor's footnotes, and supporting statements for the applicant's three most recent years, where applicable, and audited consolidated financial and income statements, with auditor's footnotes, of any parent company for the three most recent fiscal years, also where applicable.
(b) 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.
(c) Projected pro forma balance sheets, income statements, cash flow, and supporting statements of the applicant on a quarterly basis, from the date of the latest interim financial statement through a three-year period of operation. Such statements should reflect the applicant's ability to repay principal out of earnings.
(2) 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:
(a) Estimates, firm quotations, receipts, contracts, orders, invoices, leases or equivalent documentation from architects, engineers, contractors, subcontractors, material suppliers, lessors, or others involved in the sale, lease, or construction of fixed assets, if any, for applicant's project including schedules of implementation.
(b) 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 nonproject assets, and guarantees.
(5) Completed applications.
(6) Signed statement of assurances.
(Ord. 87-27, passed 6-29-87)
Editor's note:
The RLF full loan application form is attached to Ordinance 87-27 (on file in the City Clerk's office) as Appendix I.