Criteria for the acceptance or rejection of business loan
applications will be based on the following requested information in items A to
F that will convey to the council a complete basis of information on which to
evaluate the loan request, ability to repay, and management of the business, so
that comparisons may be made with known industry standards as indicators of a
company's ability to succeed.
A.
Application must only be made for a profit oriented business geographically
located in Minnesota.
B. The
council must approve:
(1) personal financial
statements and resumes of management personnel that will indicate that an
applicant is not in an excessive debt position and serve to demonstrate the
expertise of management;
(2)
operating statements of existing business for which expansion, technical, or
management assistance loans are requested that will demonstrate the need for
and feasibility of the application;
(3) financial statements for past three years
for existing businesses, if applicable;
(4) employment verification to ascertain
steadiness and extent of past work experience;
(5) documentation supporting cost of real
estate, buildings, machinery, and/or equipment that will be used to ascertain
reasonableness of cost and present conditions;
(6) detailed project description, which will
demonstrate dollar scope of the project, estimated revenue anticipated, and
indicate ability to repay the loan;
(7) equity or collateral available, which
must be at least five percent, to demonstrate applicant's insertion of risk
capital;
(8) income and expense
projections, which will indicate cash flow anticipated;
(9) applicants who will establish a business
on a reservation must have or obtain approval of tribal licenses, if
applicable, and/or leases when tribal lands are to be leased by the proposed
business enterprise; and
(10) last
two filed tax returns, if applicable.
C. All documents in item B shall be submitted
to the council at one time.
D.
Loans for the purchase of land will require the construction of a physical
facility and establishment of a business on that land within one year of
receiving the loan approval. Construction of a physical facility is to begin
within six months of receiving loan approval.
E. Business loans shall not be made to repay
or consolidate existing liabilities.
F. Any loan made hereunder will become due
and payable if the ownership of the business for which it was made is
transferred in whole or in part to any individual, partnership, or corporation
that would have been ineligible to have received the loan in the first
instance.
