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.
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
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
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
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
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)
