Introduction to Cascadia Thank you for your interest in becoming a Cascadia borrower. Cascadia Revolving Fund is a nonprofit organization that lends money to small businesses and nonprofit agencies that can not access financing through a bank. If you have not yet applied to a bank for a loan we recommend that you do so. Our interest rates are usually higher than those of most banks because the loans we make are riskier and more labor intensive. The money that we lend comes primarily from individual investors. We pool these funds and re-lend them to small businesses that provide a community benefit. We can lend up to $300,000 to any one borrower. Our loans have a variable interest rate, are short term - usually ranging from one to five years, and require collateral. Cascadia provides loans to organizations in the Pacific Northwest, such as: minority, woman and/or low-income ownership improving or preserving the environment rural locations Worker and/or consumer-owned cooperatives Affordable housing and land trusts Applying for a Loan I. Pre-application ProcessA. If you have not already done so, please call a Cascadia loan officer, at (206) 447-9226 in Seattle or (503) 235-9635 in Portland, for a preliminary discussion of your business. You will be asked to briefly describe the nature of your business or project, the size of the loan you require, the use of the loan proceeds, possible sources of collateral, and any other factors which may apply to your particular circumstances. B. Based on the information you provide, the loan officer will determine if your circumstances fall within Cascadia's lending criteria and community benefit goals. If your pre-application is denied, the loan officer will explain why. If it is approved, you will be invited to submit a Loan Application Package (described in II.C, below) to us for presentation to our Loan Review Committee and Board of Directors. We will need plenty of time to get to know you and your business. After we receive a complete loan application, it takes 6-8 weeks to complete the underwriting process. We generally cannot respond to emergency loan requests. Please submit the materials listed below to begin the application process. II. Application Process A. The application process consists of a thorough review and analysis of your Loan Application Package ("Application") by a loan officer, the Loan Review Committee and Cascadia's Board of Directors. You will work closely with a loan officer during this process. B. At some time during the Application Process, Cascadia will want to visit your business to meet you and see your business operation. C. An Application must include the following: 1. A personal consumer credit report Please fill out and sign the attached personal financial statement which gives Cascadia the right to obtain a copy of your personal credit report. 2. A Business Plan including, but not limited to, the following sections: (Please note, these questions are only a guide to some of the topics you may need to address. Not all of them will apply to all businesses, and just answering this list of questions will not adequately describe every business.) a. Purpose and background of your business What product or service are you selling? b. Description of Market What is the nature of this industry? c. Description of your Management Ability What is your management background? d. Explanation of your Legal Status How are you legally organized? (sole proprietor, partnership, corporation
- C or S, nonprofit, cooperative, etc.) How much money do you want to borrow? f. Business Financial History (last 3 years, if possible) Year-end Income Statements and Balance Sheets g. Monthly Cash Flow Projections (for the first year of the loan) Include all assumptions regarding income and expenditures. 3. Personal Financial Information, including: · Recent Personal Financial Statement (Please fill out and sign
the form attached to this packet) 4. List and Description of Possible Sources of Collateral (equipment, real estate, investments, guarantors, etc.) Before submitting your Application to the Loan Review Committee and the Board, we must have all the required information. Upon receipt of your Application, a Loan Officer will contact you if any additional information is needed. D. If your Application is denied, the Loan Officer will explain why. If it is approved, the Loan Officer will arrange a loan closing date with you. III. Closing and Disbursement of Funds A. The Loan Officer will prepare the necessary closing documents for your loan. The closing documents are contracts between you and Cascadia, and it is important that you take the time to read and understand them. We will be happy to explain anything that is unclear to you. B. Once you have signed all of the closing documents and paid all of the fees, you will be given a disbursement check. Your first loan payment will be due on the 1st day of the following month and we will provide you with a coupon book for future payments. PLEASE NOTE: ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. (RCW CHAPTER 19.36) We look forward to receiving your application!
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