In addition to the requirements specified in § 5001.303, as applicable, a lender requesting a B&I loan guarantee must submit the information specified in paragraph (a) of this section if the guaranteed loan amount is more than $600,000, or in (b) of this section if the guaranteed loan amount is $600,000 or less.
(a) Applications requesting a guaranteed loan in an amount greater than $600,000.
(1) 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. The lender must provide sufficient project and demographic information to the Agency for completion of a Department of Labor review.
(2) A pro forma balance sheet projected for loan closing.
(3) The Agency may require a Feasibility Study when the lender's analysis, borrower's business plan, or project information is not sufficient to determine the technical feasibility, market feasibility, or economic viability of the project.
(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.
(4) For companies listed on a major stock exchange or subject to the Securities and Exchange Commission (SEC) regulations, a copy of their most recent SEC Form 10-K, “Annual Report Pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934.”
(5) Current financial statements of affiliates.
(b) Applications requesting a guaranteed loan in an amount of $600,000 or less. Guaranteed loan applications may be processed under this paragraph (b) if the amount of the guaranteed loan does not exceed $600,000, provided the Agency determines that the lender's analysis, borrower's business plan, or other project or borrower information submitted by the lender is sufficient to determine the technical feasibility, market feasibility, and economic viability of the project. If any of the items in paragraphs (a)(1) through (4) of this section apply, the lender must collect the information and maintain it in their file. A Lender may need to resubmit or modify an application if the application does not contain sufficient information for the Agency to make an informed loan approval decision.
(1) Lenders submitting applications under this paragraph (b) must include the following information:
(i) Narrative description of the project including the history of the borrower and adequacy of cash flow and borrower equity;
(ii) Required financial statements including a current Agency-acceptable balance sheet and year-to-date income statements;
(iii) Security available for the guaranteed loan including collateral and payment guarantees;
(iv) Strengths and weaknesses of the guaranteed loan and the Lender's need for the loan guarantee to mitigate specific risks.
(2) The lender may elect to not submit the following application documentation to the Agency, but must have the information available in its file for review:
(i) Narrative description of management capabilities and corporate structure of the borrower;
(ii) Environmental information for the project and any environmental reviews;
(iii) Agency-acceptable historical balance sheets and income statements of the borrower and its affiliates;
(iv) Financial statements of any personal, partnership, or corporate guarantors.