RLF Application Process & File Maintenance IARC RLF Conference April 10, 2007 Joe Behrens, Local Assistance Director Region XII Council of Governments

Region XII RLF Basics 4-Funds, including EDA, RBEG, and IRP (2)- total capital base of $2.34 million Covers Audubon, Carroll, Crawford, Greene, Guthrie, & Sac Counties Program can fund up to 40% of total project cost, maximum loan of $250,000 Target of 1 new job created for every $10,000 loaned

RLF Program Outreach County-wide and local economic development groups (primary) Banks City & County Governments SBDC’s and Business Incubators

RLF Program Outreach

Preliminary Project Review (informal) Initial contact with business (direct or through development official or lender) Discussion on project details, including budget & financing needs Preliminary review of project for RLF program goals Comments to business

Preliminary Project Review (informal) Total Project Cost RLF Request Amount (not to exceed 40% of TPC) Private lender financing (min. 50% of TPC) Applicant cash/equity in (min. 10% of TPC) Job Creation (1 job for $10K loan request) Type of project (competition issues)

Formal Application Process Applications due to Region XII by 25 th of the month Applications must include all information on application checklist and 1.5% application fee Applications must be sponsored by economic development group Reviewed by Loan Review Committee 2 nd Wednesday of following month

Region XII Loan Review Committee 1-County economic development official from each county (6) 1-Lender representative from each county (6) 1-Attorney advisor (ex-officio) Executive Director & Fiscal Officer of Region XII (ex-officio) Total of 15 Members

Formal Application Process Application packets mailed out to loan review committee members Applicants invited to attend Loan Review Committee meeting with lender and/or development official Applicants give presentation, answer questions from committee members

Formal Application Process

Loan review committee discusses project, makes formal recommendation to Region XII Executive Board Recommendation will include which fund loan will be made from (EDA, RBEG, IRP, or IRP2), interest rate, terms, collateral, etc. Recommendation is presented to Executive Board

Formal Application Process Executive Board makes final decision on application If loan is approved, offer is sent to applicant including terms of loan Offer must be signed by applicant and returned Loan closing process begins

Loan Closing Process USDA Approval process, including environmental review (if initial IRP funding) Loan Security Documentation (loan agreement, promissory note, mortgage, UCC, etc.) Loan disbursement (can be total loan amount or smaller disbursements) Payment schedule

Loan Files Loan Application File (includes application materials, employment data, insurance info, financials, etc.)

Loan Files Loan Security File (includes original signed and filed loan documents)

Internal File Maintenance Loan entered into LoanLedger software ACH payments set up with bank Recording of necessary loan documents (mortgage, UCC, auto lien, etc.) Contact with insurance company to get loss payee information added Establishment of contact to obtain job creation and financial information

Annual Requirements Job creation (annual certification) Financials (end of year tax returns and/or audited financials & balance sheets) Site Visits Insurance Certificates

Job Creation Documentation

Questions? Contact: Joe Behrens, Local Assistance Director Region XII Council of Governments (712)