Laserfiche WebLink
Fixed asset vs. worhing capital loans <br />As noted above, fixed asset loans will generally require a 10% cash equity <br />contribution by the borrower or investors. <br />Working capital loans may require the 10% cash equity contribution or <br />maintain a current ratio of not less than 1: 1. <br />2.4.Appraisal Reports <br />Appraisal reports will generally be required when a loan is to be used for the <br />purchase of used equipment or an existing facility. <br />Appraisal reports may be required when a loan is to be used to buy land and <br />construct a new building or expand a pre -owned facility. Generally, when the <br />collateral value appears sufficient, an appraisal will be not required. Collateral <br />value may not be easily determinable if the property has significant debt or it <br />is constructed for a special use. If the value cannot be easily determined, then <br />an appraisal will be required. <br />2.5. Financing Not Otherwise Available <br />The IRF will require the borrower to provide any evidence demonstrating that <br />credit is not otherwise available on terms and conditions that permit the <br />completion or successful operation of the activity to be financed and to verify <br />the need for IRF financing. The method of verification will include at least one <br />of the following: : <br />0 A bank turndown letter <br />Documented list of banks contacted, funds requested, and banks' verbal <br />response <br />IRF analysis showing borrower's creditworthiness to be insufficient for <br />conventional financing <br />3. Environmental Reviews <br />The City of South Bend's Department of Community Investment will provide <br />environmental reviews for IRF loans. Staff performing this function will have experience <br />in performing environmental reviews for other Federal ly-funded projects, or will be <br />supervised by someone with such experience. <br />The IRF will ensure compliance with applicable environmental laws and regulations, <br />including but not limited to 13 CFR Parts 302 and 314, the National Environmental Policy <br />Act of 1969 and other Federal environmental mandates. <br />OWN <br />