How to Apply for
a MIDC Business Loan
To help
us learn the unique aspects of your business, it is important
that you provide us with as much pertinent information
as you can. Before we can make a decision on a loan request,
we'll need to examine the following seven areas:
MIDC CHECKLIST
1. Business Plan
2. Financial statements for your business
3. Commercial Loan Application
4. Business and personal references
5. Your Personal Financial Statement and most recent federal income tax returns
6. Character references from at least three
sources
7. Download MIDC Application
It is
easier than you may think to provide us with this information.
Call for an appointment with the Loan Officer.
MIDC
Loan Checklist
Business Plan
A formal business plan is required for the loan application
process. A business plan provides us with additional
insights into the nature of your business, the competitive
environment in which you operate, and your strategic
plan. More importantly, a well-though-out business plan
can provide you with a tool for starting and running
your business successfully. You should prepare your plan
with the assistance of appropriate professionals, but
you should be intimately familiar with the plan, and
have ownership of it.
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Financial
Statement for your Business
Financial statements provide us with a detailed
description of your company's financial performance and suggest
where your company is heading for the future. We recommend
that you arrange to have an independent, certified public
accountant prepare your financial statements. The components
of the financial statements that we will analyze include
the balance sheet, income statement, statement of cash flow,
and footnotes.
Some of the financial ratios that we analyze when reviewing your financial
statements are described in detail within this package. In certain cases,
we will accept copies of your company's federal tax returns in place of financial
statements. Please consult with MIDC's Loan Officer.
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Commercial
Loan Application
The Commercial Loan Application serves to provide
us with critical information, such as the amount of money
you wish to borrow and how you plan to repay it. The completed
application will also supply us with general background information
on your company, including ownership, company facilities,
and the collateral that will be pledged for the loan.
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Business
and Personal References
We need to examine how you and your business have handled prior
extensions of credit. Examples of personal credit could include your mortgage,
car loan(s), and credit cards. Business credit could consist of other bank
loans and loans to trade creditors, such as suppliers. Your past experience
in handing credit extensions give us an indication of how you will handle
the financing you are presently seeking. You will also need to provide us
with the names, addresses, and telephone numbers of references that could
provide us with the information on your credit history.
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Personal
Financial Statement
The Personal Financial Statement provides us with insight into
your personal financial stability. This includes information on your assets
and liabilities, as well as your income and expenditures. The status of your
personal finances and their ability to support your business is something
that we examine when reviewing a small business loan request. Please review
and complete the enclosed Personal Financial Statement prior to meeting with
MIDC.
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Personal
Federal Tax Returns
By supplying us with copies of your personal federal tax returns,
you are providing us with supporting detail above and beyond your Personal
Financial Statement. Please provide copies for the last three years.
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Our
Review Of Your Loan Request
After we receive all the completed materials describe above, you
can be confident that your request and the supporting information will be
reviewed and analyzed in detail. We will also want to meet with you to learn
more about your business, your vision, and your goals for the company.
MIDC will work with you to develop a financing plan that makes the most sense
for the future of your business. By following the suggestions that we have
outlined above, you can be sure that your credit request will receive the
attention it deserves.
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Character
References
It is important to MIDC that you and your business
support your community, and that your community supports
you and your business. Please provide us with the names of
at least three character references.
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