Loan Requirements

The following are requirements that the borrower must fulfill during the loan process for both SBA 504 and USDA IRP loans. Prairieland EDC staff is always available to assist in this process. The following are needed for Prairieland EDC Loan Committee review:

1) History and description of the business and analysis of management ability. A listing of all company officers and directors, percentages of ownership, and the name of the borrowing entity.

2) Personal History Statement (SBA Form 912) for each officer and director (regardless of ownership) and each proprietor, partner, and stockholder with 20% or more ownership of the small business.

3) Personal Financial Statement current within 90 days for each proprietor, partner, or stockholder with 20% or more ownership of the small business.

4) Resumes of the principles involved in the day-to-day management.

5) Balance sheet and income statement for the previous three years for the small business. If the small business is new, provide a proforma balance sheet with a description of the assumptions attached.

6) Copies of personal and business tax returns for the previous three years.

7) Balance sheet and income statement dated within 90 days of the application together with and aging of the accounts receivable and accounts payable listed.

8) Projected annualized income statement for the first two years after the loan with a description of assumptions attached.

9) For a new business, a monthly cash flow analysis for the first 12 months of operation or for three months beyond the breakeven point (whichever is longer) together with a description of assumptions.

10) Schedule of any previous government financing received by any principals or affiliated companies. Include the name of the agency, the original date and amount, the outstanding balance, status of the loan (current, delinquent, or paid in full, and collateral securing the loan.

11) Schedule of all other debt which includes the original date and amount, monthly payment, interest rate, present balance owed, maturity, to whom payable, and collateral securing the loan for each short-term and long-term loan that the business currently has outstanding and indicate whether each loan is current.

12) The names of affiliated (through ownership or management control) or subsidiary businesses as well as the last two fiscal year-end financial statements and a current financial statement for each of these firms.

13) A copy of key cost documents such as real estate purchase agreements, cost estimates or bids signed by architect or contractor, blueprints, plans and specifications, vendor quotes for machinery and equipment, etc.

14) A letter from the participating lender stating the terms and conditions of its participation and the reason why it will not finance the entire project. Also, a commitment letter from all other sources of financing involved in the project.

The following are needed prior to loan closing:

15) If the business is a franchise, include a copy of the Franchise Agreement and the Franchiser’s Disclosure Statement that is required by the Federal Trade Commission.

16) If applicable, a copy of the existing or proposed lease agreement.

17) An independent appraisal for construction projects on an “as completed basis” and otherwise required by SOP 50-22.

18) Environmental analysis.

19) Resolution from the borrower authorizing them to borrow.

20) Organizational documents, such as Certificate of Incorporation, Articles of Incorporation, By-laws, Partnership documents, Articles of Organization and Operating Agreement, etc.

21) Employer’s federal tax identification number.

22) Application deposit agreement with applicable deposit fee.

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