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Two Rivers requires a first collateral position on the aggregate loan
amount. The term or length of the loan will be based on the useful life of
the collateral.
Loan Criteria
The city will:
- Make loans only to businesses directly affected by the proposed
activities
- Approve varying loan amounts depending on the dollars available
- Reserve the right to review a company's financial progress
The company:
- Can't sell or move
- Must show adequate financial ability to repay the debt
- Must maintain hazard insurance on collateral
- Owner(s) must provide a personal guaranty
- Principals must carry life insurance coverage
Application
Process
Applications are available from our office. A
loan application must include the following information:
- Details on how the project addresses the eight loan evaluation
criteria (see below).
- Financial statements for the three most recent years
- A complete business plan as well as a brief summary (1-2 pages) that
provides background about the project, market opportunity, and financial
projections.
Applications are reviewed by the Business and Industrial Development
Committee. You will be invited to attend the meeting at which your
application is reviewed. The committee makes a decision within 60 days of
the submission of the application. There is no limit on the number of
applications that you can submit.
Loan Evaluation
Criteria
Projects are evaluated on the following criteria and compared to other
applications that are received. Your application must score 50 to 100
points to be eligible for a loan.
Employment Opportunities (0-15 points)
How many new, permanent jobs will be created and/or how many existing
jobs will be retained?
Business Activity (0-10 points)
Does your project have potential to stimulate additional economic
activity as a purchaser or supplier of goods and/or services in the
community?
Investment (0-15 points)
How much money will you invest in real estate that will generate
additional tax dollars?
Public Improvements (0-15 points)
How much money will you invest in the business compared to the loan amount
requested?
Risk Assessment (0-10 points)
What are the potential benefits to the city compared to the risks
associated with providing a loan?
Economic Impacts (0-10 points)
Will your project have a positive impact on the city's economy?
Neighborhood Impacts (0-15 points)
Will your project have a positive impact on the neighborhood/area in
which it will be located?
Planning Consistency (0-10 points)
Is your project consistent with the city's comprehensive and economic
development plans?
Total Point Available = 100
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