Program Overview:

1. Interest Rate:  Prime, as published in The Wall Street Journal, plus a spread above prime; fixed at time of loan approval
2. Loan fee:  1.50%; deducted from loan proceeds at closing
3. Servicing fee:  .50%; added to the interest rate
4. Terms:

• Equipment and Fixtures
  • 7 to 10 years; determined by cash flow projections
• Working Capital
  • 3 years
• Real Estate
  • 15 year amortization with 10 year calls

5. Collateral is required, with value sufficient to secure the amount of the loan.  As a normal course of business, any or all of the following may be required as collateral:

• Furniture, fixtures and equipment
• Real Estate
• Personal Guarantees of principals with a 20% or more interest in the business
• Deed of Trust on personal residence, of principals with a 20% or more interest in the business
• Assignment of Key Person life insurance policy
• Lien holder position on vehicle or vessel titles

Application Procedure:

Depending on the amount and details of your loan request, additional information may be required to complete the application process.

Phase I

• Initial interview with HAEIF contractor, Benton-Franklin Council of Governments
• Completed, written business plan.
• A 36-month cash flow; by month: projecting income, expenses and cash available for business use.  In some cases extended cash flow projections may be required.   
• Personal Financial Statement (PFS) of principals of the business and others with a more than 20% ownership in the business.  
• Resumes of principal business owners and key management personnel.

Phase II

• Completed application
• $100.00 non-refundable application fee. 
• Financing turn down letter from bank
• Last 3 years of personal tax returns

 
In addition to above Phase 1 (above), for an existing business with a past financial history, the following is required:

• Current (not more than 30 days old) and historical (past 3 years) profit and loss statement (income and expense).
• Current (not more than 30 days old) and historical (past 3 years) balance sheet of business.
• Past three years’ Income tax forms, including Schedule C, or Form 1120.  If in business less than 3 years include personal tax returns to total 3 years returns.
• Past 3 month’s bank statements.
• If incorporated, copies of By-laws; Articles of Incorporation; Certificate of Incorporation; Corporate minutes or Borrowing Resolution, to support election of corporate officers and permitting Corporation to incur debt.
• If Partnership or LLC, copies of Partnership/Operating Agreement, and Authority to Borrow