City of Newark Section 108 Loan Pool Program Pre-Application Package

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City of Newark Section 108 Loan Pool Program Pre-Application Package

Instructions:

1. Please fill out sheets #1-3. Depending on which loan you are applying for, please fill out either Sheet 2A or Sheet 2B. 2. Please ensure that all of the documents on the Pre-Application Document Checklist are included in the pre-application package. Contact Jennifer Lee Program Manager leej@ci.newark.nj.us Definitions

Buisness Loan involves projects in which debt service is repaid from cash flow generated by an operating business either from production of a good or from the provision of a service. A business usually takes out this loan.

Real Estate Loan involves projects in which debt service is paid from cash generated from leasing property to third party tenants. Real estate lending incorporates many types of projects: retail, industrial, warehousing, office space, hotel, commercial properties or any other income producing properties. A developer usually takes out this loan.

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Sheet 1. Pre-Application Information Sheet

Project Name Project Address(es) Requested Loan Amount Site Demographics

Census Tract Number (2000) Census Block Group Number (2000)

Poverty rate of Census Block Group ( use 2000 Census data)

Within a Target Node? (see map in information packet)

If yes, which node? Contact Information Company/Developer Primary Contact Phone Email Alt. Email Secondary Contact Secondary Contact Phone Secondary Contact Email Project Details/Website Type of Project Notes REQUESTED Loan Terms

Type of Loan Requested Requested Loan Amount Term

Rate Interim Rate (3-month LIBOR rate + 20 basis points+ City's 100 basis spread) or Permanent Rate (10-year Treasury note

+City's 100 basis points) Proposed Use of Funds Debt Servicing Loan (total amount of loans) to Value

Ratio Debt Service Coverage Ratio

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Sheet 1. Pre-Application Information Sheet (continued) ELIGIBILITY

Low/Medium Income Population

Benefit

Does the project serve the LMI

population?

How many full-time equivalent jobs (or housing units) are created?

How many employees (units) will be LMI population (or affordable)?

# jobs created/proposed Section

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Sheet 2A. Real Estate Loan Pre-Application

Please fill in this section if you are applying for a real estate loan. Please fill in Sheet 2B if applying for a business loan.

Answer Explanation

Site Specific Questions

Does the applicant have site control?

Is the project located in Newark?

What is the current building/site use?

Is the site currently occupied by tenants?

If so, is there a relocation strategy for the tenants? Has an environmental assessment been performed?

Will the loan fund construction costs?

Has a capital needs assessment been done?

Is the site historically significant? (historic landmark/district?)

Answer Explanation

Project Use (Please list all relevant uses: Residential,

Commercial, Industrial, Office, Retail, Mixed Use, etc.)

Project Type

PROJECT STATS Answer Explanation

Project Timetable (# months)

Gross Building SF

Net Building SF

total SF of portions eligible for funding

Use of Eligible Portions

# Commercial/Retail spaces (and SF)

# Jobs projected

Job per SF

Total # residential units (ONLY if rehabbed residential) # Affordable Residential Units (ONLY if rehabbed

residential)

Proposed uses (Please list all relevant uses: Residential, Commercial, Industrial, Office, Retail, Mixed

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Sheet 2B. Business Loan Pre-Application

Please fill in this section if you are applying for a business loan. Please fill in Sheet 2A if applying for a real estate loan.

Answer Explanation

Firm Specific Questions

# of years business is running

# years experience of

owner/management team (please list

years for each person)

How large is the firm? (# of workers)

What is your niche?

Current Firm Accounts Answer Explanation

Days Receivables Days Inventory Inventory Turnover Days Payable Days Accruable Debt/Worth

PROPOSED PROJECT STATS Answer Explanation

# Jobs created/retained

Project Timetable (# months)

Debt Coverage Ratio (at least 1.2)

Collateral

What is the expansion about? (new or

same thing but bigger?)

Working capital expansion or real estate

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Sheet 3. Pre-Application Document Checklist

Requested Info Answer Explanation

Brief project description 1-2 pages

Fully loaded budget (all hard and soft costs)

Sources and uses of funds

Experience of development or management team

Personal financials of principals

Projected number of new jobs (Provide rationale for

forecast)

For Real Estate Loan

(fill in only if applicable) Answer Explanation

Ten-year cash flow forecast

Total development

Commercial aspect

List of comparables for rents, vacancy and operating

expenses

If available, market study or appraisal

Current Status of Project

For Business Loan

(fill in only if applicable) Answer Explanation

Historical (3 Years) Financials

Balance Sheets

P&L

Reconciliation of Net Worth

Changes in Cash Position

Tax Returns (3 Years)

Profroma (10 Years)

Included

In Process

In Process

In Process

In Process

In Process

In Process

In Process

In Process

In Process

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