Assessment of Applications

General Eligibility Criteria for Business Loans

1. Character/Credit

  • Personal and business credit history of the applicant(s)
  • References
  • Management capacity – the level of industry and/or business experience the applicant(s) possess

2. Capacity

  • Demonstration of the viability of the business in business plan and financial projections
  • Earning capacity, cash flow

3. Conditions

  • Industry conditions
  • Labour, environment, regulatory issues, etc.

4. Capital

  • Owner’s equity – the amount of money the client has and is prepared to invest in the business
  • Net worth of principals
  • Reserves for emergencies

5. Collateral

  • Quality and value of the security available for the loan
  • E.g. land, buildings, equipment, vehicles, inventory

6. Fit to Community Futures Highwood mandate

  • Job creation or maintenance
  • Diversification of the region’s economy
  • Responds to a market place demand or need within the business growth of the community.

7. Decision Appeal Process for Clients

Rejected Applications/Appeal Process

  • An applicant may appeal any CFH decision in writing, outlining their reasons for the appeal and or presenting new information that may help the application strength.

  • Once a written appeal has been received the IRC Chairperson and the General Manager will decide whether or not the appeal has merit to be reconsidered.

          • Appeals will be sent back to the respective Committee for reconsideration only if the appeal contains materially different information from the original proposal or if it can be shown that the initial review was inadequately represented

      The Committee will review the appeal against the clients request for reconsideration.

Should the committee again reject the proposal; the client may again appeal the decision in writing with their reasons, "The Management & Finance Review Committee (MRC)” will review the facts and the rationale and make a final and binding decision on behalf of the organization

Frequently Asked Questions