RLF ApplicationProcess & File Maintenance

IARC RLF ConferenceApril 10, 2007

Joe Behrens, Local Assistance DirectorRegion 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 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

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

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) 792-9914

jbehrens@region12cog.org