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<br />BUSINESS CREDIT CHECK <br /> <br />.APPlicants for business assistance are required to obtain credit reports and credit references, both on <br />the business and owners holding 20% or more of the business. Some or all of the items described in <br />#1-6 may be assessed to determine credit worthiness. This review is required prior to passing the Locai <br />Government Resolution (page 6). <br /> <br />1. Obtain a credit status report from the applicant's bank on the business requesting <br />assistance. <br /> <br />2. Conduct a name search with the County Recorder's office (and/or Registrar of Deeds) <br />where the business is presently located to identify any filings of public record against the <br />business. It may be necessary to go to several surrounding counties depending on the <br />information received. For the majority stockholders, a name search should be undertaken <br />in the counties where the individual's reside (or have resided in the past). Individuals <br />providing personal guarantees are generally the majority stockholders owning 20% or <br />more of the company. The County Recorder's records will identify liens which may <br />include: <br /> <br />A. Federal tax liens <br />B. State tax liens <br />C. Judgments <br />D. Real estate liens <br /> <br />3. Conduct a lien search with the Secretary of State. <br /> <br />. <br /> <br />4. <br /> <br />Conduct a name search with the Criminal Clerk of Court in the County where the business <br />is located and where the majority stockholders reside (or have resided in the past). The <br />Criminal Clerk of Court will identify court actions taken in regard to the business and <br />stockholder(s). Conduct a name search in the Civil Clerk of Court to identify any pending <br />action against the company or stockholder(s). <br /> <br />5. To determine if there is a pending lawsuit, conduct a name search of the business and the <br />majority stockholder(s) through the U.S. District Court. <br />St. Paul: 651-848-1100 <br />Minneapolis: 612-664-5000 <br />Duluth: 218-529-3500 <br /> <br />6. Contact a local bankruptcy court to determine if the business or owners have filed for <br />bankruptcy protection. Web site: www.mnb.uscourts.QOV <br />1-800-959-9002 <br /> <br />Applicants are also encouraged to complete the following credit checks: <br /> <br />1. Obtain a Dunn and Bradstreet report on the business requesting assistance. <br /> <br />2. Obtain supplemental reports (letters and telephone calls to credit references) when other <br />channels of information do not clearly indicate the credit history of the business. <br /> <br />. <br /> <br />8-5 <br />