Webster City Association of Business and Industry dba Webster …€¦ · Webster City Association of Business and Industry dba Webster City Area Development and Chamber of Commerce

Webster City Association of Business and Industry dba Webster City Area Development and Chamber of Commerce

REVOLVING LOAN FUND PROGRAM

PURPOSE The purpose of the Revolving Loan Fund Program is to assist retail and small commercial businesses in the Webster City Area start or expand operations. The Revolving Loan Fund Program is established to encourage retail and small commercial business development in the Webster City Area. Success in this endeavor will result in stronger economic health of the local economy.

DESCRIPTION The fund will provide assistance to business owners wishing to start, expand, or relocate a retail or commercial business in or to the Webster City Area. Assistance will be provided for acquisition of land, buildings, equipment, working capital, inventory, construction, rehabilitation, and/or other necessary business expenses.

Priority will be given to retail establishments within the City of Webster City.

FORMS OF ASSISTANCE Assistance will be in the form of a direct loan to the business with collateral required. Two repayment schedule options are available:

1) Loan at fixed interest rate of two percent (2%) for a term of no longer than five (5) years. 2) Loan at fixed interest rate of three percent (3%) for a term of five to seven (5 - 7) years.

The borrower may request the desired repayment schedule.

ELIGIBILITY Funds will be available to non-agricultural, for profit retail and commercial businesses with demonstrated repayment ability. The business/potential business is required to be a member or to join Webster City Area Development and Chamber of Commerce.

APPLICATION PROCEDURE Applications to be submitted are provided by Webster City Area Development and Chamber of Commerce. These forms will be accepted any time as long as there is a capital balance in the Revolving Loan Fund account. A funding decision will be made within 30 days. If a quicker time frame is required by the business, every effort will be made to accommodate the necessary time frame. Applications must be accompanied by a Business Plan including:

3 Years Historical Financial Statements (Balance Sheet and Profit & Loss Statement) Schedule of Existing Debt (Aged Accounts Receivable & Accounts Payable Statements, Schedule of Other Debts)

3 Years Business Projections (Projected Profit and Loss Statements for the next 3 years)

Income Tax Return of Business (if applicable)

Personal Financial Statements for Principal Owner(s) of Business (Balance Sheet, Income Statement, Copy of Last Tax Return) Commitment Letters from other Lenders (Documentation of Commitment of Proposed Project Funds from bank, city, business, etc…)

Appraisal and Copies of Bids, Quotes, Estimates, or any other Cost Documentation for Project Activities

Documentation of the Current Number of Employees (copy of payroll)

SELECTION CRITERIA Applications will be selected based on the following criteria:

1) Need 2) Practicality of Business Plan 3) Feasibility of project 4) Project impact on local area

LOAN LIMITS The maximum loan amount will be the lesser of $25,000 or 50% of the total project cost. Refinancing of existing debt is not an allowable use of the fund. Businesses will not be allowed more than one loan.

SELECTION PROCEDURE The loan application will be reviewed by the Webster City Area Development and Chamber of Commerce staff. If the application is found to be complete and meets the criteria for approval, a recommendation will be made to the Executive Board of Webster City Area Development and Chamber of Commerce for final approval. Please note that this process can take up to one month from the date of application completion.


REVOLVING LOAN FUND APPLICATION

DUNS # (See page 7-8 for help obtaining your DUNS#) Revolving Loan Fund Amount Requested $ Repayment Schedule: years with fixed interest rate North American Industry Classification System Code

To access the code, go online to http://www.census.gov/cgi-bin/sssd/maics/naicsrch Enter a keyword for your business (e.g. pharmacy) in the 2012 NAICS search box. Select the six-digit code that best matches the description for your business. The Chamber can assist you if you need help locating this code.

1) Description and History of the Business (If a complete description is attached, please summarize here).

2) Project Description (what will your loan be used for):

Acquisition (buying a building/business)

Business Construction (building new)

Expansion (adding onto existing building)

Purchase Machinery, Equipment, Supplies

Purchase/Develop Real Estate

Start-up Costs/Working Capital for New Business

Other (explain)

3) Type of Application (which of these best describes your application):

Profit-Making Corporation

Proprietorship

Cooperative

Public Body (City or County)

Partnership

Trust

Non-Profit

Other

4) Employee Information (how many full and part-time employees does the company currently employ): # of Full Time Employees # of Part-Time Employees

5) Projected Jobs (if awarded funds, how many full and part-time jobs will be saved and created):

# of Full Time Jobs Saved # of Part-Time Jobs Saved # of Full Time Jobs Created # of Part-Time Jobs Created

6) Annual Payroll Estimate (what is the estimated annual payroll for the new employees resulting from this project):

1st year $ 2nd year $ 3rd year $

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http://www.census.gov/cgi-bin/sssd/maics/naicsrch



7) What is the average wage rate projected to be for the new employees? What are the fringe benefits?

8) Will any of the current employees lose their jobs if the project does not proceed? If yes, how many? Explain. Will any of the current employees lose their jobs if the project does proceed? If yes, how many? Explain.

9) What date will the project begin?

What date will the project be completed?

10) Has any part of the project been started? If yes, please describe.

11) What other Hamilton County companies could be considered to be your competitors?

12) How will this project benefit the city/county?

13) What is the businesses’ financial contribution to the project? Explain.

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14) What type of collateral and in what amount will you be using to secure this loan? Be Specific. Will the Chamber of Commerce have 1st, 2nd, or 3rd lien on that collateral?

15) What supplemental funding will be used to help finance your business? Please list source and amount.

16) Has the business been cited or convicted for violation of any laws or regulations (including environmental or safety regulations)? If yes, please explain.

17) Do current or proposed business operations generate solid or hazardous waste? If yes, please explain.

18) Are underground tanks (whether or not in current use) for the storage of petroleum products, agricultural or other

chemicals, waste oil or other liquid waste, or any other inflammable, corrosive, reactive, or explosive liquids or gases located on the business site? If yes, please explain.

19) Will you be storing aboveground liquid gas or an inflammable, corrosive, reactive, or explosive solid for any length of time for any purpose on or about your business premises? If yes, please specify.

20) Flood Plain Information: Will any part of the project take place in a 100-year flood plain? If yes, please explain.

21) Are you currently in default on any loan payments or are there mechanic’s liens filed against your company? If yes, specify.

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RELEASE OF INFORMATION AND CERTIFICATION I hereby give permission to Webster City Association of Business and Industry (or agency which has been mutually approved by Webster City Association of Business and Industry and applicant) to research the company’s history, make credit checks, contact the company’s financial institution, and perform other related activities necessary for reasonable evaluation of this proposal. I understand that all information submitted to Webster City Association of Business and Industry (or mutually approved agency) relating to this application is subject to the Open Records Law (1989 Iowa Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all representations, warranties, or statements made or furnished in this application in connection with this application are true and correct in all material respect. I understand that it is a criminal violation under Iowa law to engage in deception and knowingly make, or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic development assistance from this agency.

SIGNATURE OF COMPANY OFFICER/OWNER PRINT NAME DATE / / NOTE: Webster City Association of Business and Industry will not provide assistance in situations where it is determined that any representation, warranty, or statement made in connection with this application is incorrect, false, misleading, or erroneous in any material respect. If assistance has already been provided by Webster City Association of Business and Industry prior to discovery of incorrect, false, or misleading representation; Webster City Association of Business and Industry may initiate legal action to recover Revolving Loan Funds.

REQUIRED ATTACHMENTS/SUBMISSIONS (Check off each submitted. If not submitted, explain why)

Business Plan / Market Study 3 Years Historical Financial Statements (Balance Sheet and Profit & Loss Statement) Schedule of Existing Debt (Aged Accounts Receivable & Accounts Payable Statements, Schedule of Other Debts) 3 Years Business Projections (Projected Profit and Loss Statements for the next 3 years) Income Tax Return of Business (if applicable) Personal Financial Statements for Principal Owner(s) of Business (Balance Sheet, Income Statement, Copy of Last Tax Return) Commitment Letters from other Lenders (Documentation of Commitment of Proposed Project Funds from bank, city, business, etc…) Appraisal and Copies of Bids, Quotes, Estimates, or any other Cost Documentation for Project Activities Documentation of the Current Number of Employees (copy of payroll)

NOTE: Any costs incurred (credit checks, title searches, etc…) in the application review process by the review committee or designee will be deducted from application program monies.

BUSINESS INFORMATION

BUSINESS NAME

EMPLOYER ID#

APPLICANT NAME

ADDRESS

PHONE #

SOCIAL SECURITY #

FINANCIAL INSTITUTION

SIGNATURE OF APPLICANT DATE / /

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*The following information is requested by the Federal Government in order to monitor compliance with Federal Laws prohibiting discrimination against applicants seeking to participate in this program. You are not required to furnish this information, but are encouraged to do so. This information will not be used in evaluating your application or to discriminate against you in any way. However, if you choose not to furnish it, we are required to note the race/national origin of individual applicants on the basis of visual observation or surname.

ETHNICITY

Hispanic or Latino

Not Hispanic or Latino

GENDER

Male

Female

RACE (mark one or more)

Caucasian

African American

American Indian

Alaskan Native

Native Hawaiian

Pacific Islander

Asian

Other (please specify)

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CERTIFICATION AUTHORIZATION

I/we hereby authorize Webster City Area Development and any subsequent investor or assignee to verify my past and present

employment earnings, deposits, account balances, stock holdings, and any other assets regarding verification in order to process

my loan application. I further authorize Webster City Area Development, subsequent investor, and/or assignee to order a

consumer credit report and verify other credit or liability information including past and present mortgages and landlord

references. It is understood that a photocopy of this form will serve as authorization.

The information obtained by Webster City Area Development pursuant to this authorization may be used only for processing my

loan application.

Privacy Act Notice: This information is to be used by the agency collecting it in determining whether you qualify as a prospective borrower under

it program. It will not be disclosed outside the agency without your consent except to your employer(s) for verification of employment or to

financial institutions for verification of deposits and loans as permitted by law. You do not have to give us this information, but if you do not your

application for approval as a prospective borrower may be delayed or rejected.

Borrower Social Security Number

Borrower Social Security Number

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Documents

Webster City Association of Business and Industry dba Webster …€¦ · Webster City Association of Business and Industry dba Webster City Area Development and Chamber of Commerce