MONTGOMERY COUNTY LOAN PROGRAM. Serviced by the Montgomery County Development Corporation

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1 MONTGOMERY COUNTY LOAN PROGRAM Serviced by the Montgomery County Development Corporation Thank you for your interest in the Montgomery County Loan Program. We are excited to be able to offer opportunities to help small and medium sized business grow in Montgomery County. Enclosed you will find a Loan Application Worksheet, as well as a sample Business Loan Checklist and Fee Schedule. Please review the general requirements below and complete the Loan Application Worksheet. Once you have completed the Loan Application Worksheet and gathered the required Exhibits please submit the application and we will be contact with you. The sample Business Loan Checklist sets forth some of the items that will be required through the County s underwriting and approval process. A finalized checklist will be prepared upon review of the materials submitted. General Requirements Any applicant company must be a duly formed and subsisting corporation, partnership, limited liability company, sole proprietorship, not for profit or governmental agency that has its principal offices in Montgomery County. Preferences will be given to companies or organizations that have been located in the County and have been in operation for a minimum of two years. For profit and non-profit entities are both eligible so long as they otherwise meet the criteria for the loan. The applicant company must show, in conjunction with the loan, a substantial reinvestment in the company operations, such as the contribution of additional equity by the principal owners, or the purchase of new equipment and/or development of new technology through the deployment of research and development funding generated from operations. The applicant must also commit to remain located within Montgomery County for the duration of the loan. Exiting Montgomery County will result in all interest and principal balances becoming due and payable within six (6) months, along with a repayment of all credits issued under the interest rate abatement program. The company must also demonstrate the capacity for growth, as evidenced by (i) in the case of an established business, increased demand for its product or service, and (ii) in the case of a new or startup business, strongly supported projections, a wellreasoned business plan and such other supporting documentation as is necessary or appropriate under the circumstances. The applicant must provide a specific plan to expand operations during the term of the loan, and must be prepared to invest its own equity into the business in conjunction with the loan. Although the program does not require a specific ratio of equity investment to requested loan amount, the County will consider the financial stability of the company, the personal assets and wherewithal of the principal owners of the company, the historical performance of the company and the amount of liquidity, in the form of cash and cash equivalents, available to the company and the principal owners as part of the underwriting process. Capital provided under this loan program can be used for capital investment, land acquisition, equipment purchases, raw materials and inventory. Loans may also be made available for working capital, but only in circumstances where the demonstrated opportunity for growth requires expanding the pool of available employees and loan proceeds are used to increase employment. Applicants for loans must demonstrate sufficient available capital to pay wages and fringe benefits for existing as well as new employees for at least twelve (12) months after the loan closing. 1

2 FEE SCHEDULE Non Refundable Loan Application Fee Administration Fee Closing Costs (Legal, Corp. Searches, Etc.) $ Due at Time of Application One Percent (1.0%) of Loan Amount Due at Closing TBD Amount Due at Closing 2

3 LOAN APPLICATION WORKSHEET 1. Name of Borrower (individual or corporate, if corporate please identify state of incorporation): 2. Borrower s Address: 3. Tax Identification Number: 4. Names and Titles of Principals of Borrower: 5. Identify the overall business purpose of the Borrower: 6. Loan Amount Requested: 7. Purpose of Loan: 8. Is the loan request part of a larger financing or project? If so, please explain: 9. Please describe the financial stability and controls of the borrowing entity: 3

4 10. Please explain the economic benefits that would be realized as a result of the approval of the County loan (types of jobs created, employee training, improvement of land or building, etc.): 11. Rate Abatement: The County Loan program description accompanying this application contains a series of programs that could reduce the interest rate paid by the Borrower during the life of the loan. Please review the programs and describe below, if applicable, the specific plans for how the Borrower could be eligible for a rate abatement and the commitment to comply with those requirements: 12. Please list any additional information you may feel is relevant for purposes of the loan approval process: EXHIBITS TO BE ATTACHED: A Business Plan/Executive Summary B Debt and Equity Schedule C Operating Budget D Financial Statements/Tax Returns E - Corporate/Org. Documents F Resumes/Biographies 4

5 EXHIBIT A BUSINESS PLAN/EXECUTIVE SUMMARY (Please attach here a summary of the business operations, recent and projected growth of the corporation, employees, unique services corporation provides, expansion and marketing goals and demand, etc.) 5

6 EXHIBIT B DEBT AND EQUITY SCHEDULE (Please list all debt and equity held by the corporation and its principals) 6

7 EXHIBIT C OPERATING BUDGET (Please include a copy of the operating budget of the corporation, including all funding sources, investors and contributions) 7

8 EXHIBIT D FINANCIAL STATEMENTS AND CORPORATE TAX RETURNS (Please include personal tax returns for any principal owning 20% interest or more in the corporation as well as financial projections) 8

9 EXHIBIT E CORPORATE/ORGANIZATIONAL DOCUMENTS OF THE BORROWING ENTITY 9

10 EXHIBIT F RESUME/BIOGRPAHIES OF SENIOR MANAGEMENT TEAM OF BORROWING ENTITY 10

11 MONTGOMERY COUNTY LOAN PROGRAM SAMPLE BUSINESS LOAN CHECKLIST (Serviced by the Montgomery County Development Corporation MCDC ) Note: The below represents a sample business loan checklist and is not an all-inclusive list. The checklist will be updated and finalized upon review of the Loan Application Worksheet. For example, should the County require a guaranty of the Loan or depending on loan purpose and the collateral used to secure the loan, the checklist will be modified accordingly. Borrower Contact Information: MCDC Contact Information Name/Address Phone Number/ Loan Amount: Closing Date: DOCUMENT NAME RESPONSIBLE PARTY 1. Loan Application Worksheet Borrower STATUS 2. Application Fee Borrower 3. Operating Budget Borrower 4. Financial Statements Borrower 5. Corporate Tax Returns Borrower 6. Personal Financial Statements/Tax Returns (if applicable) Borrower 7. Debt and Equity Schedule Borrower 8. Financial Projections Borrower 9. Project Budget/Sources and Uses (if applicable) Borrower 11

12 10. Proof of Insurance: Hazard General 11. Flood Determination and proof of insurance, if applicable 12. Business Plan/Executive Summary 13. Organizational Documents of Borrower: Articles of incorporation/certificate of organization Bylaws/operating agreement/partners hip agreement Resolution Authorizing Loan Subsistence Certificate 14. Corporate Searches for Borrower and any related entities: Judgment Bankruptcy State UCC-1 Borrower MCDC/Borrower Borrower Borrower/MCDC MCDC 15. Tax Identification Number Borrower 16. Tax Assessment Searches MCDC 17. Real Estate Appraisal Borrower 18. Environmental Assessment Borrower 19. Real Estate Leases Borrower 12