KENDALL-GRUNDY COMMUNITY ACTION MICRO-LOAN PRELIMINARY APPLICATION

Transcription

1 KENDALL-GRUNDY COMMUNITY ACTION MICRO-LOAN PRELIMINARY APPLICATION The Kendall-Grundy Department of Community Action has established the CSBG Micro-Loan Program to assist in financing micro-businesses for start-up or expansion efforts. A micro-business is defined as any proprietorship, partnership or corporation that provides selfemployment to the borrower on a full-time, year-round basis and that provides employment for not more than five persons on a full-time and year-round basis. If proprietors, eligible borrowers and their spouses must own all business assets, if partners or corporations, eligible borrowers and their spouses must own at least one-half of business assets. Other eligibility criteria are as follows: Businesses must create at least one job for a low-income person, which may include selfemployment of the borrower if he/she is CSBG-eligible and will gain full-time employment through the borrowing; the required hiring must be completed within the first 12 months of the loan; Borrowers must demonstrate that they cannot provide or borrow the needed funds from other lenders. The maximum amount of lending will be $20,000 and may be entirely funded through the Micro-Loan Program. The interest rate may not exceed 5 percent and may be adjusted at the discretion of Kendall- Grundy Community Action. The interest rate will be a fixed rate for the term of the loan which will not exceed five years. Proceeds of the borrowing may be used to purchase machine, equipment and inventory, to provide working capital and/or to purchase or improve real property. No funds may be used for new construction. Beyond what collateral may be secured by taking liens on business assets and personal guarantees, no specific amount of collateral is required. No owner equity is required. For further information and/or application forms, please contact: Diane Alford, Assistant Director Kendall-Grundy Community Action Phone: (630) Fax: (630)

2 KENALL-GRUNDY COMMUNITY ACTION REVOLVING LOAN FUND Preliminary Application/Summary A. Applicant Name: B. Business Name: C. Type of Business: D. New/Existing: E. Job Creation/Retention: F. Site: G. Own/Lease? H. Amount of Assistance Desired: I. Collateral: J. Brief Description of Project:

3 Explanation of Checklist Items 1. Detailed business plan to include history, if applicable. 2. Resumes of all principals. 3. Complete list of machinery and equipment being purchased with loan funds. 4. A Minimum of three year s historical on existing business and balance sheet of beginning balances to include loans identified in application, assuming all loans are approved. 5. A minimum of three years historical and projections. 6. Identify uses of funds by funding source (i.e., CSBG purchase of machinery and equipment; bank purchase and renovation of building). 7. Personal income statements of all principals (within 90 days of application submission). 8. Monthly cash flow projections with annual total (first year only). 9. Assumption of projections. 10. Estimates of construction costs. 11. Submit information on your company s products or services and identify existing and potential major customers and competitors. 12. List those people who are responsible for the management of the company and indicate their positions and percentages of ownership. 13. Provide a detailed explanation of the need for and use of the funds for working capital. 14. State relationship between another company owning 50% or more of applying company s stock; the applying company owning 50% or more of another company s stock; the applying company s association with any other business. 15. Include debt schedule of existing loans, not to include loan in this application. 16. For land and/or building acquisition, attach an appraisal and a copy of the purchase option or agreement or lease agreement. For building construction or renovation, provide contractor or architect s cost estimates. For purchase of business attach appraisals. 17. Outline the general location of the project. 18. Submit historical corporate financial statements for the past 3 years and interim statements signed and dated no more than ninety days prior to application. Also submit a balance sheet for after the loans are made: 1. Profit and Loss Statements 2. Balance Sheets 3. Disclosure of Contingent Liabilities

4 19. Document all sources of leveraging in commitment letters. Loans for financial institutions must have language indicating the loan amount, the specified term and interest, collateral, conditions attendant to the loan, and the fact that the loan is approved. 20. Describe any suits or legal actions to which the applicant/company may be a defendant. 21. Describe any bankruptcy actions of the applicant/company within the past 14 years. 22. Certificate of Understanding to do business in Illinois from the Secretary of State. DESCRIPTION OF PROJECT:

5 APPLICANT Chief Executive Officer/Applicant: Company Name: Address: City, Zip: County: Phone Number: Contact Person: Amount of Financing Requested: $ Total Jobs Created: Total Project Cost: Term of Loan: Date: Signature: