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<br />,ANALYSIS: <br /> <br />U sing standard banking criteria, the private lending instiwtion shall determine if the <br />application demonstrates a fiscally sound loan proposal. A business pro forma provided by the <br />applicant must demonstrate that the business proposal is not feasible using 100% market rate <br />private financing. The extent to which RLF funds are used and the specific loan terms for their <br />repayment must meet the Ifnecessmy or appropriate" test tSablished by the EDA. The EDA <br />shall review the analysis to confirm compliance with these requirements. <br /> <br />pLIomLE USES OF FUNPS: <br /> <br />All forms of small commercial or industrial enterprises with gross annual revenues of <br />$' or less are eligible to apply for the loan program. Permitted expenditures of the <br />portion of loan proceeds funded ftom the private lending institution shall be determined by said <br />institution. Permitted expenditures of the portion of loan proceeds funded ffom the RLF are <br />sul1iect to the following conditions: <br /> <br />Permi~ Expenditures <br /> <br />Building cOlNroction or remodeling, landscaping, parking improvements. <br />Capital equipment (generally, equipment eligible <br />for 10 year depredation under IRS rules). <br />Land or building acquisition. <br />Lease-hold improvements. <br /> <br />Prohibited Expenditures <br /> <br />Movable fixtures, equipment, furniture, or personal property. <br />Refinancing of existing loans. <br />Rolling stock (cars, trucks, etc.). <br />Working capital. <br /> <br />EOUITY: <br /> <br />The business owner shall raise at least 10% of the total amount of funds necess8IY for <br />the specific business activity listed in the application ftom personal assets or through other equity <br />participant(s). All equity amounts listed in the loan application must be demonstrated to be the <br />exclusive property of the applicant and not boJrowed. <br /> <br />2 <br />