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
