Skip to form
image

For any questions or concerns with the application, please contact Nate Prescott - nmprescott@orem.org

CARES Act RLF Loan Application

This application is only valid until June 1st, 2022

General Information - Page 1/5

1-4. Full Date

1-6. Contact Person

1-7. Orem Address

Business Plan

Please supply a business plan (upload below) detailing the following information. Please provide detailed information for the following sections, as they will help our underwriter and Loan Approval Board make a more informed loan decision. A PDF outline of the Business Plan can be found here

Company

  • Business purpose - Explain what business you are in and why
  • Give a brief summary of the company's history and current status, describe the market and the industry, and where your product is in its lifecycle
  • How the CARES Act RLF funds will help your business recover from the economic stress of the COVID-19 pandemic
  • State the company's overall strategy and objectives including the owners' rate of return on equity (profit) objective - list steps to be implemented to reach each objective
  • Facility and equipment (type and size) requirements to produce product/service
  • Please outline your collections policies and trade terms

Products or Services

  • Describe important features and user benefits - relate features of the products and services to market needs and to the competition
  • Describe specific products and projects planned - their status, when due out, expected product life-cycle, and potential revenues
  • Present status of product/service - current stage of development, expected life cycle
  • Please describe the product/service's pricing rationale

The Project

  • Provide a concise description of the proposed project (the project is what this funding will be used for)
  • Outline your schedule for completing the project
  • Outline the objectives of the project
    • Outline the steps to be implemented to reach each objective, including dates of completion for each step and objective
  • Outline your detailed operating plan including: how the project will be managed, day-to-day operations and general operations, summary of each person's responsibility, and identify key decision makers

Detailed Market Strategy

  • Detail and describe what needs in the market you intend to satisfy, who buys your product and why - and how was this determined?
  • Describe the market - size, anticipated growth, key changes, trends - cite specific sources for market data and analysis
  • Competition
    • Who are they (existing and potential), how much of the market do they have, what's their strategic position?
    • How do they compare in pricing and margins?
    • Outline their strengths and weaknesses
  • Compatitive advantage - what makes you different, what gives you an advantage?
  • Market penetration - how are you going to reach the market? (Your market strategy - channels of distribution, promotion, pricing, etc. and the cost of the marketing program)
  • Proprietary position - trademarks, patents, trade secrets, special production skills, proprietary processes, etc. (DO NOT provide confidential details)
  • Schedule of quarterly or monthly and annual sales and revenue objectives differentiated, as appropriate, by product/service lines - steps to be implemented to reach each objective
  • A budget for marketing and sales expenses differentiated, as appropriate, by product/service lines
  • An organization of marketing and sales responsibilities
  • Description of the product or service pricing rationale

Management

  • Resumes of key individuals - what value do they add to the company?
  • History of working together as a team
  • Identification of immediate personnel needs and anticipated initial organizational structure

1-12. Upload your business plan here (from previous question)

image

For any questions or concerns with the application, please contact Nate Prescott - nmprescott@orem.org

Business Information - Page 2/5

2-1. Date Business Started

2-4. Date of Incorporation

2-5. Please upload copies of any affiliate/subsidiary firms/franchise agreements for your business

2-14. Was a marketing/feasibility study completed on this project?

2-15. The loan is generally secured through a lien on the home of all principals with at least 20% ownership in the company. Will you (and the other principals with at least 20% ownership) accept a lien on your home(s)? If any details or explanations are needed, please use the third option.

Corporate Details

If the company is a corporation, please submit the following information in the Corporate Details section. All documents must be signed and dated

Download the Corporate Authorization Resolution stating that the Board of Directors authorizes the business to borrow and then upload below

2-17. Please submit the Corporate Authorization Resolution

2-18. Please submit a copy of your corporation's Articles of Incorporation

2-19. Please submit a copy of your corporation's bylaws

Partnership Details

If your business is a partnership, please submit the following (all documents must be signed and dated) :

2-21. Please upload documentation of your Partnership Agreement

2-22. Please provide a partnership authorization regarding borrowing for the business

image

For any questions or concerns with the application, please contact Nate Prescott - nmprescott@orem.org

Use of Funds - Page 3/5

Inventory

image

For any questions or concerns with the application, please contact Nate Prescott - nmprescott@orem.org

Financial Information - Page 4/5

All financial documents must be signed and dated

4-1. Please upload your business' Current Financial Statement

4-2. Please upload your business' Financial Statements from the past 3 years

4-3. Please upload copies of your business' Income Tax Return from the past 3 years

4-4. Please upload your business' Pro Forma Balance Sheets and Income Statements for the coming 3 years

4-5. Please upload your business' Pro Forma Cash Flow Projection on a monthly basis for the coming year

4-6. Please upload your business' Pro Forma Cash Flow Projection for two additional years on a yearly basis

4-7. Please upload the List of Current Obligations, List of Projected Obligations, Schedule of Previous Government Financing, and Purchase Order Summary (and copies of present purchase orders and contracts) here

Principals' Financial Information

4-10. Please upload current personal financial statements for all owners with more than 20% ownership

4-11. Please upload copies of personal income tax returns for the past 3 years for all owners with more than 20% ownership

4-12. Please upload completed Credit Report forms for each principal and their spouse

image

For any questions or concerns with the application, please contact Nate Prescott - nmprescott@orem.org

Job Creation/Retention - Page 5/5

FYI: Low to moderate income is calculated as being at or below 80% of the Median Family Income, or any family at or below $66,960 as a total family income

Job Creation/Retention Requirements

All loan recipients agree to create or retain jobs and provide employment for persons currently in the low to moderate income range. By employing low to moderate income persons, it is hoped they may better themselves through these employment opportunities. The specific requirements of the program are:

  • One (1) job will be created for every $35,000 RLF monies loaned
  • First consideration will be given to low to moderate income persons when positions are available
  • 51% of the jobs will be held by or available to low to moderate income persons

EXPANDING BUSINESSES (Existing, operating business which will expand and create jobs): The company commits that 51% of the new positions created after the loan will be available to or held by low to moderate income persons.

RETENTION (Existing jobs will be saved as a direct result of the RLF assistance): The company commits that 60% of all employees (current employees at the time of the loan and all new employees hired after the loan) would be available to or held by low to moderate income persons.

  • All projected jobs must be filled within two (2) years of funding (projections must be realistic and attainable)
  • All new jobs must provide an income of at least minimum wage
  • The jobs must be permanent and directly related to the project
  • The jobs must be computed on a "full-time equivalent basis". Part-time jobs should be converted to full-time equivalents by summing the total hours worked per week for the part-time employee and dividing by the standard hourly work week for full-time employees, normally 35 to 40 hours.

5-1. Current number of employees

5-2. Approximate number of permanent jobs to be created

5-3. Approximate number of permanent jobs to be retained

5-4. Approximate number of jobs available to low/moderate income individuals

REPORTING AND MONITORING REQUIREMENTS

To ensure the projections and requirements are met, federal administrators require the City to make quarterly on-site monitoring visits as well as gather reports. When the projected employees have been hired and the company has met the 51% requirement, the company should notify the City. The commitment regarding job creation/retention will have been met at this point and the monitoring and reporting for this area will no longer be necessary. Until the projections are met, it will be necessary for the company to submit the following information and follow the federal schedule below:

Quarterly

  • 1st Quarter — Jan 1 - Mar 31
  • 2nd Quarter — Apr 1 - Jun 30
  • 3rd Quarter — Jul 1 - Sep 30
  • 4th Quarter — Oct 1 - Dec 31

The company will complete QUARTERLY:

  • Quarterly Job Report comprised of:
    • Job Information Form - to be filled out when new employees are hired
    • Employer Quarterly Wage List
    • Project Progress Report - Provide a quarterly update including any changes in the (1) original project, (2) schedule of completion of the work, (3) the project budget, and (4) changes in the business to address the failure to create/retain the requisite number of jobs

The City will also meet with the Company quarterly to:

  • Discuss any questions or problems regarding any government agencies
  • Review the conditions of the loan payment

The Company will provide SEMIANNUALLY (Jan 1 - June 30, July 1 - Dec 31):

  • Financial Report - Consisting balance sheet and operating statement
  • Business Plan Report - Report indicating the progress toward implementing the business plan proposed in the application, noting any revisions from the original business plan
  • Jobs Report - Report documenting the progress towards the hiring and training of low and moderate income persons including without limitation (1) a listing by job title of the permanent jobs created with the loan proceeds, identifying which are part-time, if any; (2) a listing by job title of the permanent jobs filled and which jobs were initially held by or made available to low and moderate income persons; and (3) a listing, for each low and moderate income person hired, and verification that the annual income of the person's family is below that required to be low and moderate income under CDBG standards (low to moderate income is calculated as being at or below 80% of the Median Family Income, or any family at or below $66,960 as a total family income).

The Company will provide ANNUALLY:

  • Annual Financial Report - The company will provide an annual financial report as reviewed by a CPA with full disclosures noted.

 


Please download and submit the following forms as part of your application. These forms only need to be filled out once (Job Information Form must be completed by current employees and new hires as they are hired).

  • Job Information Form - form to be completed by each employee and the employer
    • 1. Make copies of the Job Information Form
    • 2. Employer must complete the Employer section and the employee must complete the employee section
    • 3. Determine if the position is held by or available to low to moderate income persons and make a note of it on the bottom of the Job Information Form
  • Current Employees Report - form to be completed by the company and incorporating information from Job Information Forms
  • Projected Employees Report - form listing the positions that the company intends to hire.
  • Environmental Review Questionnaire - questionnaire to ascertain the environmental impacts of the project, and whether or not a deeper environmental review is required
  • Acknowledgement and Agreement - contract detailing the commitment needed to fulfill the program requirements.

Please upload Job Information Forms, Current Employees Report, Projected Employees Report, Environmental Review Questionnaire, and Acknowledgement and Agreement