In this folder goes the executed USDA Application, Lenders Agreement, AD-3030 for any businesses involved in the transaction, List of USDA loans made by lending institution, and Priority Score Sheet. If the bank has an internal application, this could be included here as well.
The lenders credit memo/analysis goes in this folder with their approval and signed commitment letter.
This folder will contain any environmental documents required by RD5001 and by lender policy.
It is good practice to have multiple folders within this folder holding Borrower Financials, Co-Borrower Financials, Guarantor Financials, and any affiliate financials.
For all applications of $600,000 or greater, a draft loan agreement for the guaranteed loan that addresses the following:
This is simply a memo identifying whether or not the borrower has a known relationship or association with an Agency employee. If there is a known relationship, identify each Agency employee with whom the borrower has a known relationship. An Agency employee is anyone who works for Rural Development. This can me a simple memo on letterhead
This is nothing more than a simple memo on lender letter head detailing the Loan Classification and risk rating which will be applied at closing. Most lending institutions will apply a Risk Rating of "4" and a Current/Performing classification.
If there is more than one appraisal ordered it is a good policy to credit individual folders for each piece of collateral to hold the appraisal and supporting documents such as the engagement letter and bank review.
Credit reports for any Borrower, co-borrower, and guarantor will go in this folder.
(i) For guaranteed loans greater than $1,000,000.00 to a new business,a feasibility study prepared by an independent qualified consultant acceptable to the Agency is required. The scope of the feasibility study will be determined by the Agency and is dependent on the complexity of the project and the borrower.
(ii) For loans of $1,000,000.00 or less to new and existing businesses,the Agency may require a feasibility study when the lender’s analysis or other borrower information is not sufficient to determine the technical feasibility or economic viability of the project, or if the project will significantly affect the operations of a borrower who is an existing business and its historic cash flow.
(iii) A technical report is required for RES identified in § 5001.307(e) and for projects utilizing other integrated processing equipment and systems. The contents of the technical report must be consistent with the requirements of § 5001.307(e)(1) and must provide sufficient detail to enable the Agency to determine technical merit. The report can be provided in the technical feasibility section of a feasibility study or in a separate technical report.
If this document is not required, a placeholder document can be included that is titled "Not required for this loan package".
If this report is completed be either the lender or environmental company, those documents will go in this folder
If this document is not required, a placeholder document can be included that is titled "Not required for this loan package".
If this document is not required, a placeholder document can be included that is titled "Not required for this loan package".
If this document is not required, a placeholder document can be included that is titled "Not required for this loan package".
This is a REAP requirement and will not pertain to B&I or CF Loans. If this document is not required, a placeholder document can be included that is titled "Not required for this loan package".
This is a REAP requirement and will not pertain to B&I or CF Loans. If this document is not required, a placeholder document can be included that is titled "Not required for this loan package".
means a comprehensive document that clearly describes the borrower’s ownership structure and management experience including, if applicable, discussion of a parent company, any subsidiaries and affiliates of the borrower and discussion of how the borrower will operate the proposed project. If a business or industry is in decline or financial distress, the business plan must describe in detail how the project differs from the current industry trends or improves the borrower’s financial position. The
NOTE, this document is note required if the purpose of the loan is to refinance debt.
If the application is for five or more residential units, including nursing homes and assisted-living centers, an Affirmative Fair Housing Marketing Plan that is in conformance with 7 CFR 1901.203(c)(3).
The conditional commitment may be issued subject to receipt of an adequate Affirmative Fair Housing Marketing Plan but must be received prior to issuance of the loan note guarantee.
If this is not required, a placeholder document can be included that is titled "Not required for this loan package".
If the application is for financing of health care facilities, a certificate of need, if required by Federal or State law
If this is not required, a placeholder document can be included that is titled "Not required for this loan package".
The Agency is required to submit project information to the United States Department of Labor for their concurrence if the proposed guaranteed loan is in excess of $1,000,000.00 and will increase direct employment by more than 50 employees.
If this is not required, a placeholder document can be included that is titled "Not required for this loan package".
This is the post-closing projected balance sheet that should have been included in the lenders analysis. It is good practice to replicate it and put it here with the bank and borrower's signature.
This will usually not be required. A placeholder document can be included that is titled "Not required for this loan package".
This is a REAP requirement and will not pertain to B&I or CF Loans. If this document is not required, a placeholder document can be included that is titled "Not required for this loan package".
These are for Community Facility projects
If this is not required, a placeholder document can be included that is titled "Not required for this loan package".
These are for Community Facility projects however if a B&I loan has support from the community and letters have been provided that can always be a positive for the loan.
If this is not required, a placeholder document can be included that is titled "Not required for this loan package".
Articles of Incorporation, Operating Agreement/Bylaws, EIN Number, DUNS Number, annual registration, certificate, and any resolutions
Any documents that have not found their place into a folder above can be added to the end of the package. These could include Notes to be Refinanced, Survey, and others.