Business Finance Center
Loan Program Evaluation Criteria
- The business must show adequate cash flow to service the entire debt.
- The business and its principals must have satisfactory history of meeting debt obligations in a timely manner. Credit checks are performed.
- The business must demonstrate to NEPA that it has experienced and adequate management to operate the company successfully.
- Collateral and personal guarantees are required, as appropriate, for the particular loan request. NEPA collateral for each loan is reviewed on a case by case basis. Subordinate financing is possible.
- For start ups and new to market businesses, a thorough Business Plan is required including financial projections supported by assumptions.
- Hazard insurance must equal the value of the assets pledged.
- Life insurance assignments are generally required on owners or key management personnel.
- The borrower must pay all legal fees and any other closing costs.