Small Business Lending Center Microenterprise Loans. Loans from $500-$10,000



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Small Business Lending Center Microenterprise Loans Loans from $500-$10,000 Rates and Terms: Fixed Rates 8.75%-10%, for up to six years 7% for up to 10 years for Energy Efficiency Projects (see Loan Manager for eligibility details.) Eligible Loan Uses for New and Expanding Businesses Machinery & Equipment, including Energy efficiency equipment Furniture & Fixtures Inventory & Supplies Working Capital (Refinancing, lines of credit, construction/real estate purchases or debt consolidation are not eligible uses under the Microloan Program) Application Process: There is a two-stage application process, which includes a Conditional Approval and then a Final Application package. 2. Final Loan Application Package (approval within 5 working days after receipt of this package) For final approval borrower needs to supply the following: Completed Business Plan Questionnaire or Business Plan Balance Sheet and Debt Schedule Personal Financial Statement Owner s Resume, for each owner Projected income Statement Loan Application Fee of $50, due with application package, plus any filing fees and recording fees generated by a title company will be charged to borrower(s). Estimates of those fees will be provided. There is a monthly service fee on approved loans of $8 and late payment penalties will apply. Payment schedule and loan reporting requirements are in the Loan Application Package.

Small Business Lending Center Business Plan Questionnaire Borrower Name(s) Business Name: Phone: What products does your business sell or what services does your business provide? (List each of your products/services in order of importance.) What is your business competitive edge? Why should prospective customers buy the product you sell or service you provide in stead of the product/service of your competitors? Do you manufacture (construct or build) the products your business sells? Describe how they are made. (Service businesses need not answer.) What products does your business buy? (For example, if your business is a restaurant, you probably buy milk, eggs, cheese, etc from a grocer?) What payment arrangements, if any, have you made with the companies you buy products from? If possible, provide a list of your primary/regular customers. List the names of your primary competitors. What are their overall strengths and weaknesses? How do they advertise? Who do your competitors sell their products or services to?

Business Plan Questionnaire page 2 How did you determine the price of the products you sell or services you provide? Are your prices based on your competitors prices, how much it costs you to provide the service or buy the product you sell, the value of the service/product to the customer, etc? Describe any discounts on any of the services you provide or products you sell. (Example: Customers who pay their invoices within 10 days of receipt are given a 10% discount, etc.) Describe any credit you offer to your customers. (Example: Cash only, 50% up front, pay upon receipt of invoice within 15 days, etc ) How do you advertise and promote your product or service? (Example: Word of mouth, yellow page advertisements, TV or radio advertisements, telemarketing, flyers. brochures, etc.) How do you sell your product or service? (Example: Door to door? Do you want for customers to contact you? Is your product on display in stores? How long and how often is your product displayed?) Do you spell your products or provide your services directly to the customer or do you go through middlemen?

Business Plan Questionnaire page 3 Describe your organizational structure, including relevant personnel. Provide a list of key resource people who will help you with your business such as a lawyer, a CPA, a tax preparer, a bookkeeper, a marketing advisor, etc Please provide the full name, title/position, address, phone number for each of these resource people. Please return this completed form and any other documentation to Arcata Economic Development Corporation, attention Kelli Denney, 100 Ericson Ct. Ste. 100A, Arcata, CA 95521. Fax. 707-822-8982. Call 822-4616 to schedule a follow-up appointment.

ASSETS Current Assets Cash Checking Cash Savings Inventory Accounts Receivable Total Current Assets Fixed Assets Furniture & Fixtures Equipment & Machinery Vehicles Unimproved Land Improved Real Estate Accumulated Depreciation Total Fixed Assets TOTAL ASSETS LIABILITIES: Current Liabilities Accounts Payable Accrued Expenses Short Term Debt Current Portion LTD Total Current Liabilities Long-term Liabilities Notes Payable: Projected Balance Sheet- Year # Less Current Portion Total Long-term Liabilities TOTAL LIABILITIES NET WORTH/EQUITY Owner's Capital Net Profit/Loss for Period Less Owner's Draws Total Net Worth/Equity Total Liab and Equity Assets should equal Liabilities plus Net Worth/Equity

PLEASE LIST ALL EXISTING BUSINESS DEBTS DEBT SCHEDULE Date * CREDITOR NAME/ADDRESS ORIGINAL AMOUNT ORIGINAL DATE PRESENT BALANCE INT. RATE MATURITY DATE MONTLY PAYMENT SECURITY CURRENT OR DELINQUENT TOTAL PRESENT BLANCE** TOTAL MONTHLY PAYMENT * Should be the same date as current financial statement ** Total must agree with balance shown on current financial statement Signature Date

ARCATA ECONOMIC DEVELOPMENT CORPORATION 100 Ericson Court, Suite 100, Arcata, CA 95521 (707) 822-4616 PERSONAL FINANCIAL STATEMENT Complete this form for: (1) each proprietor, or (2) each limited partner who owns 20% or more interest and each general partner, or (3) each stockholder owning 20% or more of voting stock, or (4) any other person or entity providing a guaranty on the loan. Name Residence Address City, State Business Phone Residence Phone Zip Code Business Name of Applicant/Borrower: ASSETS Cash on hand & in Banks $ Savings Accounts $ IRA or Other Retirement Account.. $ Accounts & Notes Receivable $ Life Insurance-Cash Surr Value Only. $ (complete in Section 8) Stocks and Bonds $ (Describe in Section 3) Real Estate.. $ (Describe in Section 4) Automobile - Present Value $ Other Personal Property.. $ (Describe in Section 5) Other Assets $ (Describe in Section 5) Total $ LIABILITIES Accounts Payable $ Notes Payable to Banks and Others $ (Describe in Section 2) Installment Account (Auto) $ Mo. Payments $ Installment Account (Other) $ Mo. Payments $ Loan on Life Insurance $ Mortgages on Real Estate $ (Describe in Section 4) Unpaid Taxes $ (Describe in Section 6) Other Liabilities $ (Describe in Section 7) Total Liabilities $ Net Worth $ Total $ Section 1. Source of Income Contingent Liabilities Salary $ Net Investment Income. $ Real Estate Income $ Other Income (Describe below)*.. $ As Endorser or Co-Maker $ Legal Claims & Judgements $ Provision for Federal Income Tax $ Other Special Debt $ Description of Other Income in Section 1. *Alimony or child support payments need not be disclosed in "Other Income" unless it is desired to have such payments counted toward total income. Section 2. Name and Address of Noteholder(s) Notes Payable to Bank and Others. Original Balance (Use attachments if necessary. Each attachment must be identified as part of this statement and signed. Current Payment Frequency How Secured or Endorsed Balance Amount (monthly, etc.) Type of Collateral

Section 3. Stocks and Bonds (Use attachments if necessary. Each attachment must be identified as a part of this statement and signed. Market Value Date of Number of Shares Name of Securities Cost Total Value Quotation/Exchange Quotation/Exchange Section 4. Real Estate Owned Type of Property (List each parcel separately. Use attachments if necessary. Each attachment must be identified as a part of this statement and signed). Property A Property B Property C Address Date Purchased Original Cost Present Market Value Name & Address of Mortgage Holder Mortgage Account Number Mortgage Balance Amount of Payment per month/year Status of Mortgage Section 5. Other Personal Property and Other Assets (Describe, and if any is pledged as security, state name and address of lien holder, amount of lien, terms of payment, and if delinquent, describe delinquency). Section 6. Unpaid Taxes (Describe in detail, as to type, to whom payable, when due, amount, and to what property, if any, a tax lien attaches). Section 7. Other Liabilities (Describe in detail). Section 8. Life Insurance Held. (Give face amount and cash surrender value of policies - name of insurance company and beneficiaries). If the answer to any of the following questions is yes, attach a written explanation: Have you ever declared personal bankruptcy? [ ] Yes [ ] No If Yes: Chapter Filed Date Filed Case Number Present Status: [ ] Case Dismissed [ ] Payment Plan [ ] Debts Discharged (amt: $ ) [ ] Pending Have you ever experienced foreclosure, repossession, debt judgement or criminal penalty within the last seven years? [ ] Yes [ ] No Are there any legal actions (claims, lawsuits, etc.) pending against you? [ ] Yes [ ] No I authorize Arcata Economic Development Corporation to make inquires as necessary to verify the accuracy of the statements made and to determine my creditworthiness. I certify the above and the statements contained in the attachments are true and accurate as of the stated date(s). These statements are made for the purpose of either obtaining a loan or guaranteeing a loan. I understand FALSE statements may result in forfeiture of benefits and possible prosecution by the U.S. Attorney General (Reference 18 U.S.C. 1001). Signature: Date: Social Security Number: Signature: Date: Social Security Number: PLEASE NOTE: The estimated average burden hours for the completion of this form is 1.5 hours per response.

MANAGEMENT RESUME Please fill in all spaces. If an item is not applicable, please indicate as such. You may include additional relevant information on a separate exhibit. SIGN/DATE where indicated. PERSONAL INFORMATION: NAME First Middle Last DATE OF BIRTH PLACE OF BIRTH SS# RESIDENCE TELEPHONE BUSINESS TELEPHONE RESIDENCE ADDRESS FROM TO PRESENT DATE PREVIOUS ADDRESS FROM TO SPOUSE'S NAME SS# First Middle Last ARE YOU EMPLOYED BY THE U.S. GOVERNMENT? Yes No AGENCY/POSITION ARE YOU A U.S. CITIZEN? Yes No IF NO, GIVE ALIEN REGISTRATION NUMBER EDUCATION: College/Technical Training - Name/Location Dates Attended Major Degree/Certificate MILITARY SERVICE BACKGROUND: Branch of Service WORK EXPERIENCE: Company Name/Location From To Title Duties Company Name/Location From To Title Duties Company Name/Location From To Title Duties Dates of Service Signature Date

Twelve Month Projected Income Statement - Year # Month: January February March April May June July August September October November December Totals Sales: Total Sales: Less COGS Gross Profit Expenses: Wages/Salaries Payroll Taxes Advert/Promotion Rent Supplies Depreciation Interest Expense Legal/Accting Taxes/Licenses Insurance Utilities/Telephone Miscellaneous Total Expenses Net Profit Less: Inc Taxes NP After Tax