RLF Application Process & File Maintenance

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

2. 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

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

4. RLF Program Outreach

5. 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

6. 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) Preliminary Project Review (informal)

7. Formal Application Process • Applications due to Region XII by 25th 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 2nd Wednesday of following month

8. 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

9. 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

10. Formal Application Process

11. 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

12. 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

13. 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

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

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

16. 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

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

18. Job Creation Documentation

19. Questions? Contact: Joe Behrens, Local Assistance Director Region XII Council of Governments (712) 792-9914 jbehrens@region12cog.org