Minnesota Administrative Rules
Agency 109 - Rural Finance Authority
Chapter 1654 - ETHANOL PRODUCTION FACILITY LOAN PROGRAM
Part 1654.0030 - ASSISTANCE APPLICATIONS
Universal Citation: MN Rules 1654.0030
Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1. In general.
To apply for assistance from the authority under the program, an applicant must submit a completed application which is dated and signed by an owner, general partner, or an authorized officer of the applicant.
Subp. 2. Contents.
An application must contain at a minimum the following information:
A. a funding request
indicating the desired financial assistance from the program, collateral
offered for the financial assistance requested, capitalization of the project,
use of funds, and future financing needs;
B. project cost summary;
C. financial statements of the applicant,
including a balance sheet, an operating statement, a statement of the sources
and uses of funds, and footnotes to the statements, if available, for the
following time periods:
(1) financial
statements for the previous three financial years, or such shorter period of
time during which the applicant has conducted business. If unaudited, the
statements must be verified by an authorized financial officer of the
applicant;
(2) a balance sheet
dated as of not more than 90 days before the date the application was submitted
and if unaudited, compiled by a certified public accountant;
(3) federal tax returns filed by the
applicant for the previous three financial years, or such shorter period of
time during which the applicant has conducted business; and
(4) a proforma balance sheet and income
statement for the 60 months following the financial assistance closing that
shows the financial position of the applicant and includes the proposed
financing;
D. a complete
business plan for the applicant, complying with subpart
3;
E. signed personal financial statements dated
as of the date of the application for any person who owns 20 percent or more
interest in the applicant;
F. a
resolution of support or other comparable preliminary approval from the local
government unit with respect to the project to be financed;
G. an authorization which will allow the
authority to disseminate all or any part of the loan application package
supplied by the applicant to any outside sources which the authority deems
necessary in order to process, review, and analyze the application;
H. certification that the applicant will not
discriminate in employment in a manner contrary to applicable federal, state,
or local laws, regulations, rulings and decisions; and
I. a statement of all permits, licenses, and
other similar authorizations which must be obtained in order to construct and
operate the proposed facility and evidence that the applicant will be able to
obtain such items.
Subp. 3. Business plan.
As part of the application, the applicant shall also submit to the authority a comprehensive business plan. The business plan must include, but is not limited to, the following:
A. a management summary of the plan
including:
(1) name of the business;
(2) business location and plan
description;
(3) the management
team and its expertise and experience;
(4) summary of financial
projections;
(5) amount of
financial assistance requested;
(6)
sources and amounts of funds to capitalize the proposed project; and
(7) business goals;
B. a description of the applicant including
the following:
(1) date and state of
incorporation, date and state of formation of partnership or joint venture, or
date and state of formation of sole proprietorship;
(2) history of the applicant; and
(3) principals and the roles they played in
the evolution of the company;
C. a market analysis including:
(1) description of the current industry
status and industry trends;
(2)
effects of major social, economic, technological, or regulatory trends on the
industry;
(3) description of the
total market, principal market participants, and their performance;
and
(4) discussion of the target
market and competition;
D. a description of the marketing strategy
including:
(1) overall strategy;
(2) pricing policy;
(3) sales and channels and terms;
(4) method of selling and distributing
product;
(5) estimated sales and
market share; and
(6) advertising,
public relations, and promotion;
E. the management plan including:
(1) form of business organization;
(2) board of directors composition, if
applicable;
(3) officers
organization chart and responsibilities; and
(4) resumes of key personnel;
F. an operating plan including:
(1) schedule of upcoming work for the next
two years;
(2) facilities plan or
planned capital improvements for the next three years;
(3) manufacturing processes; and
(4) staffing plan (number of
employees);
G. a
schedule indicating the completion dates for realizing the significant aspects
of the business plan; and
H. a
discussion of the risks and problems inherent to the business plan, including
the negative factors and plans to minimize the impact of those
factors.
Statutory Authority: MS s 41B.07
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