Michelin Development Upstate Loan Application Clients Tips

Michelin Development Program Requirements Must have a business plan (MD Staff will provide a template) Must show ability to repay the loan New Business: Cash Flow Projections, letters of intent, and/or any purchase orders, and 2 years of personal tax returns. Existing Business: Cash flow projections and 2 years of financial statements or tax returns. Client must have a current credit history for at least 6 months Complete and return a personal financial statement All LLC’s must have the following: Article of Incorporation, Certificate of Existence, Operating Agreement

Michelin Development Requirements Must show owner expertise/experience Can submit a resume Must have hard equity invested Client must have already invested at least 25% of the amount they are requesting. If you are requesting $50,000, you must show that you have $12,500 invested into your business Hard Equity Defined (unencumbered business assets) Property, Building, Supplies, Inventory, Merchandise, Business Vehicles, Equipment, Tools, etc.

Michelin Development Guidelines Value Proposition Sufficiently address competitive environment by listing existing and potential competitors Primary advantage and primary disadvantage competitor has in relation to your business Your strategy/advantage to compete with each competitor

Michelin Development Loan Application: Contact Information Please list a valid: mailing address, email address and phone number MD staff will use this information to contact you about the status of your application

Michelin Development Loan Application: Resources Purpose of loan Provide details on how the money will be used. A general overview: how much is going to salaries, to equipment purchase, etc. Other Sources of funding (Hard Equity invested) List the amount you have already invested in your company. Must be detailed and must equal 25% of the amount you are requesting.

Michelin Development Loan Application: Potential Job Creation job creation must be reasonable and realistic Cost per job average is $20,000 or less (divide the amount of money you want to borrow by the number of jobs you will create).

Michelin Development Loan Application: Monthly Cash Flow Projection Collections on Sales Please include monthly sales collections Loan Proceeds Please include MD loan The entire amount requested in month one or request amount in months 1-3 (Entire amount requested must be borrowed within 90 days) Please show how and where the requested amount will be used in the cash flow projection

Michelin Development Loan Application: Cash Flow Projections - Loan payment Loan Principal Amount requested and divide by 60 to get principal payment for 5 year loan (divide by 36 for 3 year loan) Loan Interest Pay interest only in months 1-6 Pay interest and principal in months 7-12 To calculate interest you take the amount you are requesting multiply it by 4.70% and divide it by 60 to get monthly interest payment

Michelin Development Loan Application CBDC Investment Committee will not fund salaries for more than 6 months. Please make sure the items you list under Resources / purpose of the loan are shown in your cash flow projections. Example: If you request $5,000 for marketing in Purpose of the loan, that same amount should be reflected in your Cash Flow Projections.

Michelin Development Loan Application: Save and Send Using the drop down box, please select one of the following option: Save for later: Save and come back later Send to Michelin: Save and notify Michelin it is ready for review. You will not be able to edit the form once it is send Once you click on Send to Michelin, your application will be locked and you will have to call MD staff if you want to make any additional changes Borrower will be responsible for all loan closing fees