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