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B. LOAN PROCESSING PROCEDURES <br />1. Standard Loan Application Requirements <br />The IRF uses a loan application to collect information from potential borrowers. This <br />application (attached as Appendix A) includes an executive summary along with <br />requirements to submit the following: <br />Business plan <br />Company financial data (historical, interim and projected) when available <br />Personal financial statements of guarantors (anyone owing 20% or more) <br />Sources and uses of funds <br />Information on available collateral <br />Proposed repayment terms <br />Jobs to be created or retained <br />Impact on local tax base and any proposed tax abatement action <br />Bank commitment letter showing bank's participation <br />Evidence showing the credit is not otherwise available <br />2. Credit and Financial Analysis <br />2. I.Business and personal credit reports <br />A Dun & Bradstreet credit report will be obtained on an as needed basis for <br />each business applying for a loan. <br />A personal credit report will be obtained on an as needed basis for each <br />individual owing 20% or more of a company applying for a loan. <br />2.2.Standard Collateral Requirements <br />The IRF will generally secure a loan with the assets being financed. If the <br />asset is real estate, then a mortgage will be obtained. If the asset is equipment, <br />inventory, accounts receivable, or other working capital, a security interest will <br />be taken and UCC Financing Statements will be filed. <br />If the assets being financed are only accounts receivable, inventory or other <br />working capital, a security interest may be taken in these assets, along with a <br />security interest or mortgage in other assets of the business In the case of high <br />tech, start-up firms the only collateral may be based on the technology or the <br />intellectual property owned by the firm. <br />Personal auarantees <br />Personal guarantees will be required on all IRF loans, but may be waived if the <br />IRF has a first mortgage or first security interest in assets with an estimated <br />liquidation value of at least 100% of the IRF loan. They may also be waived <br />for start-up companies in high tech industries. <br />we, <br />