Guide 4 B&CP 11-15-07 Page 1 BORROWER PHONE LENDER PHONE PURPOSE AMOUNT POINTS Preapplication Checklist Please note: Preapplications are NOT mandatory. Due to limited funding, lenders are encouraged to file preapplications. See RD Instruction 4279.161 (a). Document/Information Needed Reference Prepared By Date Received (For preapplication) and Number of Copies Needed A = Applicant; L = Lender; RD = Agency Letter signed by the lender and applicant 4279.161 (a) A&L providing the following information: Borrower's name, organization type, address, contact person and federal tax identification and telephone numbers. Amount of the loan request, percent of 4279.161 (a) A&L guarantee requested, and the proposed rates and terms. Name of the proposed lender, address, 4279.161 (a) A&L telephone number, email address, lenders website, contact person, and lender's Internal Revenue Service (IRS) identification number. Brief description of the project, products, 4279.161 (a) A&L services provided, and availability of raw materials and supplies. Type and number of jobs created and/or 4279.161 (a) A&L saved. Guide 4 B&CP 11-15-07 Page 2 DOCUMENT/INFORMATION Reference Prepared By and Date NEEDED Number of Copies Received (For Preapplication) Needed A= Applicant; L = Lender; RD = Agency If a corporate borrower, the 4279.161 (a) L names and addresses of the borrower's parent, affiliates, and subsidiary firms, if any, and a description of the relationship. For existing businesses, a current 4279.161 (a) L balance sheet and a profit and loss statement not more than 90 days old and financial statements for the borrower and any parent, affiliates, and subsidiaries for at least the 3 most recent years. Current personal financial Statement for owners with 20 % ownership interest. For start-up businesses, a 4279.161 (a) L preliminary business plan must be provided. Form 4279-2, “Certification of 4279.161(a)(2) A&L Non-Relocation and Market and Original for file and Capacity Information Report” 7 copies to NO Only for those projects where over $1M is requested AND where direct employment will increase by over 50 jobs. Guides (BILG) to use as tools to L ensure that the specific processing steps are review APPLICATION PROCESS- LENDER DOCUMENT/INFORMATION NEEDED Reference Prepared By and Date Guide 4 B&CP 11-15-07 Page 3 Number of Received Copies Needed A= Applicant; L = Lender; RD = Agency RD 4279-1, 4279-B; A&L “ Application for Loan Guarantee” 4279.161(b)(1) Original to Part A- Applicant answers & signs Lender and Part B- Lender signed copy to Part C- USDA file When dealing with an individual applicant 1910-A and RD or a partnership with less than 5 members: FMIs send within three days: 410-7, original 4279.164 (b)(1) to applicant and RD 410-7 to all individuals and partners copy for the file provide any source with requesting 410-10, original information concerning an individual with to source of RD 410-10, “Privacy Act Statement information and Reference” copy for the file When requesting financial records from the Lender or other financial institution, send the following notification with the request: “I certify that the United States Department of Agriculture, has complied with the applicable provision of Title XI, Public Law 95-630, in seeking Financial information regarding- insert applicant’s name. RD 1940-20, “Request for Environmental 1940-G, A Information” 1940.315(b) Original to file and copy for State clearinghouse review (Old A-95 Lender and process) applicant MORE details we get from the Lender ahead of time & before site visit the better. We HAVE to do our own analysis but if one was done we can use that documentation and then draw our own conclusions. Guide 4 B&CP 11-15-07 Page 4 DOCUMENT/INFORMATION NEEDED Reference Prepared By Date and Number of Received Copies Needed A= Applicant; L = Lender; RD = Agency Form 4279-2, “Certification of Non- 4279.161(a)(2) A Relocation and Market and Capacity Information Report” Only for those projects Original for where over $1M is requested AND where file and 7 direct employment will increase by over 50 copies to NO jobs. Financial Statements for Past 3 years - 4279.161(b)(7-8) A Balance Sheet, Profit & Loss Statement, and & 4279.131(a)-(f) Cash flow Statements Reviewed by L Make sure you get an updated financials statement every 90 days until the issuance of the LNG. Original with the application and then update prior to closing if more than 90 days old. 2 years of Projected Financial Statements 4279.161(b)(7-8) Pro-Forma Balance Sheet and 4279.131(a)- A (f) Get updates as needed until the issuance of Reviewed by the LNG. Lender Guarantor's Financial Statements- current 4279-B; A within the last 90 days 4279.161(b)(10) Reviewed by L Copy of Lender's Loan Analysis WITH 4279.161 (b)-8 L COPY OF APPROVAL CONDITIONS Credit Reports 4279.161(b)(4) L Personal- for all who own 20% or more of the business Guide 4 B&CP 11-15-07 Page 5 DOCUMENT/INFORMATION NEEDED Reference Prepared By Date Received and Number of Copies Needed A= Applicant; L = Lender; RD = Agency Lender Certification 4279-B; L 4279.161(b)(16) Must cover items listed in RD Instructions 4279.161 (b)(16) Appraisals- AN 3798 (4279- L B) dated All real property appraisals will meet 10/20/02. Standards 1 and 2 of the Uniform Standards of Professional Appraisal Practice (USPAP) and be signed by a GA Certified General Real Estate Appraiser. The real property appraisal report must be prepared as a Self-Contained Appraisal Report or a Summary Appraisal Report in accordance with Standard 2 of the Uniform Standards of Professional Appraisal Practice. Lender's Proposed Loan Agreement 4279.161 (11) L review to make sure it addresses i.) – xiii) Site Visit Report- A/O will be informed and 4279.165 (a)(5) asked to participate. RD Complete report with copy to PD within 10 days from the visit reporting items covered obtain information to complete write-up for the Environmental and civil rights reports during visit. Site analysis form for each tract of land planned for collaterial. (Include pictures) Environmental Assessment for Class I Action RD 1940-21 RD Environmental Assessment for Class II RD Instruction RD Actions 1940-G Exh. H Guide 4 B&CP 11-15-07 Page 6 DOCUMENT/INFORMATION NEEDED Reference Prepared By Date and Number Received of Copies Needed A= Applicant; L = Lender; RD = Agency Environmental Checklist for Categorical RD 1940-22 RD Exclusions RD 2006-38, “Civil Rights Impact Analysis 4279-A; 4279.60 RD Certification” a copy in the Operations File The SO Civil Rights Coordinator gets a copy. Verify Tangible Balance Sheet equity L (Get concurrence that any projected closing equity requirements/ concerns have been satisfied and document this in case file) Input Moody’s as part of the loan Analysis RD (Print out all reports as required by RD Instruction.) Securities & Exchange Commission Report- RD 4279-B; L if a publicly traded company and a certificate 4279.161 (b)(14 of need for health care facility & 15) Analysis for the Loan Committee RD ( See B&I Guide #7 for details on Committee role and responsibilities in approval process) Document that the applicant is not on any 1910.5(d)(e) RD debarred list and check CAIVRS; http://www.arnet.gov.epls Business and Industry Application Priority Score sheet is RD Points Score Sheet based on 4279_B; 4279.155 (b) FDIC call report on Lender RD http://www2.fdic.gov/call_tfr_rpts/search.asp Guide 4 B&CP 11-15-07 Page 7 3 POSSIBLE OUTCOMES AFTER LOAN COMMITTEE See SO Letter BCSP 05-003 for Details YES NO YES, NO FUNDS Obligate Give Reasons in letter of Make request from NO 60 day reserve fund rejection to LENDER Lender is notified of SO to prepare: With appeal rights situation make sure to a. Conditional refer to current 1940-L to Commitment- 4279-3, see what the funding Obligation , LAPAS cycle is. APPROVAL DOCUMENT/INFORMATION NEEDED Reference Prepared By Date and Number Received of Copies Needed A= Applicant; L = Lender; RD = Agency 4279-3, “Conditional Commitment”, for 4279.173 sample Conditional Commitments see B&I RD Loan Guide 8, Attachment 1. Original to The BPLS and SBLT will prepare the 4279-3 file, copy to and send it to the Lender who has 60 days to Lender and accept. Can only be issued after obligation is proposed confirmed. Borrower SBPS and someone from AO will meet in PERSON at bank to go over the Conditional Commitment, servicing and reporting responsible of the lender and applicant/borrower prior to acceptance of the CC. Project Announcement to Congressional Exhibit B of RD Liaison LAPAS use templates posted at: RD Instruction http://teamrd.usda.gov/rd/lapas/leg/defa ult.htm 2015-C Guide 4 B&CP 11-15-07 Page 8 DOCUMENT/INFORMATION NEEDED Reference Prepared By Date and Number Received of Copies Needed A= Applicant; L = Lender; RD = Agency RD 1940-3, “Request for Obligation of Funds 4279-B, App. D RD Guaranteed Loans” Original in file, signed copy to Lender, copy to Borrower, copy to SO UPDATE GLS Print out CLOSING Lender Certification stating that the loan was closed properly. RD 4279.181 (a)- Use CC as guide to determine if borrower (p) and Lender certification covers all items as outlined in approved CC Obtain Lender’s certification as to the L tangible balance sheet equity requirement Loan Settlement Statement L Promissory Note L Security Documents L RD 1980-19, “Guaranteed Loan Closing 4279.186 (a)(3) L Report” and the check are sent to SO. Note: BPT check the math. DO NOT accept Original to the wrong amount. File, copy to Lender Current (less than 90 days old) Financial 4279-B, App. D A&L Statement Obtained per GAAP standards Guide 4 B&CP 11-15-07 Page 9 DOCUMENT/INFORMATION NEEDED Reference Prepared By and Date Number of Received Copies Needed A= Applicant; L = Lender; RD = Agency RD 4279-4, “Lenders Agreement” 4279.186 (a)(2) L&RD Original to SO Lender file, copy to Lender and to file RD 4279-5, “Loan Note Guarantee” 4279-B, App. D RD Original to Lender attached to Note, copy to file attached to confirmed copy of Note. State Director's Cover Memorandum to 4279.173(e) National Office within 30 days of conditional commitment acceptance WITH BPT THE FOLLOWING: 1. A copy of Form 4279-3, “Conditional RD Commitment,” 2. A copy of the State loan committee minutes. 3. A copy of the lender’s credit analysis, financials, appraisals, etc. 4. A copy of the proposed Loan Agreement between the lender and the borrower. 5. When debt refinancing is involved, a copy of the justification for refinancing. Note: The cover memorandum must indicate whether Form 4279-5, “Loan Note Guarantee,” has been issued. If the Loan Note Guarantee has been issued, enclose a copy of the Lender Certification and if not, a proposed date for issuance of the LNG.