Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 110 - STATE ADMINISTRATION OF THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR SMALL CITIES › Subpart B - REVOLVING FUNDS › Section 110.280 - Revolving Fund Fundability Analysis

Current through Register Vol. 48, No. 28, July 12, 2024
Each RF shall have a standard RF financial assistance
				  application. The RF administrator shall conduct a review and maintain
				  documentation for each RF application to support that minimum program
				  requirements have been satisfied pursuant to Sections
				  110.250
				  and
				  110.260 of this
				  Subpart and that fundability is consistent with the following:
a) Financial Feasibility Evaluation - The RF
				applicant shall submit supporting financial data which at a minimum shall
				include the following information:
1) A brief
				history of the business and past employment growth.
2) Market Information on the business'
				products or services and identification of existing and potential major
				customers and competitors.
3) Three
				years historical financial statements which consist of: a balance sheet, profit
				and loss statement and a reconciliation of net worth. This information shall
				cover three years, as well as the most recent 90 days. Accountant's notes or
				detailed notes, in those instances in which the statement is not audited, shall
				be included with the statement.
4)
				Prior three years of tax statements for those small businesses with no formal
				financial statements.
5) Personal
				financial statement of each principal (sole proprietor, partner, officer,
				stockholder) owning 20 percent or greater share of the outstanding stock or
				interest in the business, as well as a brief personal history statement for
				each.
6) Projected earnings report
				which includes a three year projected balance sheet and profit and loss
				statement, as well as a one year monthly cash flow statement. Base assumptions
				shall also be included.
7) Business
				plan and/or market feasibility information which addresses business products or
				services and identifies existing and potential major customers and
				competitors.
8) Financial
				statements of the general partners, if a business is a limited partnership. If
				a business is a corporate general partner, the personal and corporate financial
				statements of the general partner shall be submitted.
9) A list of major equipment or classes of
				equipment to be acquired. For acquisition of new machinery and equipment,
				reliable vendor cost estimates shall be provided. For used machinery and
				equipment acquisition, an appraisal shall be provided which demonstrates that
				the fair market value is in line with the purchase price.
10) A detailed explanation of the need for
				and specific use of working capital. If used for inventory, a list with
				supporting cost estimates shall be provided.
11) A list of all sources of leveraging
				documented by written letters of commitment. Loans from financial institutions
				used as leverage shall indicate approval as well as the loan amount, the
				specified term and rate, collateral, and conditions attendant to the loan.
				Equity contributions shall be documented through signed letters from the
				benefiting business.
12)
				Documentation of the legal status of the borrower and authorization to enter
				into the loan, e.g., Articles of Incorporation, Secretary's Certificate,
				Certificate of Good Standing, etc.
13) A letter verifying the number of jobs to
				be created and/or retained, including the number to be filled by low and
				moderate-income persons and the specific time period over which this will
				occur.