Loan Application Information

Eligibility

The business must be located in the Community Futures Grande Prairie & Region, and the applicant must be involved in the day to day operation of the business.  In order to receive a loan from Community Futures Grande Prairie & Region, the recipient must demonstrate they meet eligible business activities that are consistent with CF program terms and conditions.  Eligible activities include businesses that will promote stable economic growth, job creation and diversify the local/regional economy. 

The applicant must be of legal age and a resident of Canada

Unless there are unusual or extenuating circumstances, applications will not come to the Investment Review Committee for consideration in any of the following situations:

1. The applicant is in bankruptcy;
2. The applicant has an outstanding court judgment;
3. The applicant has outstanding collections;
4. A credit check has revealed a major credit problem;
5. The main purpose of the loan is to refinance current debt;
6. The applicant is unable to provide proof of residency.

The business provides/maintains employment to one or more residents of the Community Futures Grande Prairie & Region

The loan(s) are to establish, expand, or preserve a business within the Community Futures Grande Prairie & Region.

The applicant must declare they have been declined financing by a traditional lender.  The client loan file will include documentation in the form of either a letter or documented discussion (Name of Lending Officer, Contact Information, date) with the financial institution.

The applicant must have completed a Business Plan acceptable to Community Futures Grande Prairie & Region. The Business Plan will be kept in the client loan file.

The applicant must complete all other required application forms plus any additional documentation requested by Community Futures Grande Prairie & Region.

The applicant must have tangible investment by the client into the project being considered for approval by Community Futures Grande Prairie & Region shall be determined on a case by case basis dependent upon the nature and life expectancy of the security to be held by the CF for the loan and dependent upon the ability of the client (Some borrowing clients may demonstrate more ability to invest into their small business project than others).  Normally, the minimum investment of unencumbered equity into a business will not be less than 10% of the total project being considered for funding. 

The following is a typical loan application process:

Application:

• Initial client interview.
• Review loans process and the services available through Community Futures Grande Prairie & Region.
• Supply a complete application package and documentation required if the client appears to meet basic eligibility requirements.

Assessment Process:

• The Business Analyst and/or Loans Manager will investigate all elements of the application under 6 key areas including:
  • Character – Including credit checks, references, management capability
  • Capacity – Including assessing the business plan and cash-flow
  • Conditions – Includes market conditions, labour force situation, plus political, environmental, social, and technological considerations.
  • Capital – Including owners equity, assets, and resources
  • Collateral – Community Futures Grande Prairie & Region will undertake to secure loans following a 1:1 ratio
  • Fit to Community Futures Grande Prairie & Region Operational Plan (i.e. number of jobs created/maintained, diversification)
• The Business Analyst and/or Loans Manager will then complete an Investment Review Committee loan summary report providing an overview of all the information in each of the key areas addressed during the loans investigation process. 
• The Business Analyst and/or Loans Manager will then submit the summary report along with all appropriate supporting documentation to the Investment Review Committee.

Approval Process:

• Loan application(s) greater than $25,000.00 for any applicant will be reviewed by the Investment Review Committee. 
• Loans less than or equal to $25,000.00 may be approved by the Executive Director and will be reviewed by the Investment Review Committee at their next scheduled meeting or between regular meetings via a secure website

Rejected Applications/Appeal Process:

• The Executive Director or Business Analyst will inform the client immediately following the Investment Review Committee decision meeting.
• The applicant will be sent a letter outlining the reason(s) for rejection.
• Appeals will be addressed by the Investment Review Committee only.
• Appeals must be made in writing
• Upon an Appeal request:
  • Investment Review Committee meets and review the loan application briefly before the client arrives.
  • Client is called in and makes his/her presentation.
  • Committee asks the client questions pertinent to the loan.
  • Client leaves the meeting.
  • Committee analyzes the loan application and makes their final decision.
  • Client is advised by authorized personnel within 24 hours of the decision.
  • Only one appeal permitted per proposal, with the Board’s decision being final

Redress Process: 

• If the appeal is declined, the appellant may again appeal the decision in writing.  The appeal should include reasons and new information supporting that appeal (redress.)  For this appeal, a Redress or Appeals Committee consisting of not less than three (3) not more than seven (7) members representing two (2) or more Community Futures Corporations shall review the amended appeal application.  This Adhoc Committee representative of Community Futures Corporations shall be the highest level of authority.
• Accordingly, the decision will be considered final and binding on behalf of the Corporation that assessed, reviewed and declined the original and the initial appeal applications.  If this joint Ad Hoc Appeals Committee, representing two or more CF Corporations, upholds the appeal and grants approval to the investment (loan) request as amended, the standard lending processes of the original CF Corporation will be undertaken and completed.
• A $250 fee plus all expenses associated with the Ad Hoc Committee shall be the responsibility of the appeallant.