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NECOG Development Corporation is a gap lender, and lender of last resort. Combination of a conventional (bank) loan and the applicant’s equity is expected to provide the majority of the required financing. Refinancing or restructuring of existing debt is generally not eligible; funds are targeted for job creation. Terms of NECOG-DC loans, including amortization term, interest rates, balloon payments, collateral positions, etc. are determined on a case-by-case basis by the NECOG-DC Board. Board will require adequate collateral. NECOG-DC Board generally meets once per month, and complete applications must be in the NECOG office 10 days prior to the schedule board meeting in order to be considered at that month’s board meeting. Expect a cycle of 45 days from the time the application is submitted to NECOG-DC until the funds are available, assuming a complete application and loan approval. NECOG-DC loan funds must be the last funds into the project, and the loan cannot be closed before any other funds. Following items must be included with your NECOG-DC application in order to be considered by the NECOG-DC Board. 1. Signed Release Form 2. Completed Application (4 pages) 3. Sources and Uses Form 4. Itemized List of Available Collateral 5. Financial Statement(s) of Applicant(s) 6. Statistical Data Sheet 7. Automatic Electronic Payment Authorization Form (provided at closing) 8. Business Plan, Including Financial Projections 9. Documentation of Participating Lender (letter from other lender) 10. Prior Three Years Tax Returns for Business and Individual(s) 11. Organizational Documents (on Business) 12. Evidence of Applicant’s Equity Injection (must be 10%) 13. Debt Schedule for Any and All Existing Debt 14. Check for $25 per Applicant, Payable to NECOG-DC 15. Copy of acceptable Photo ID if applicant is an individual Married applicants: If your spouse is not included on the application and is a co-owner of collateral, a separate personal financial statement will need to be submitted. If any of these items are not included, the application will be considered incomplete and will not be reviewed by the NECOG-DC Board. Questions regarding the NECOG Development Corporation loan fund or the application itself should be directed to Rich Galbraith at 605-626-2595 or email. Completed Applications: NECOG Development Corporation Attn: RLF Manager 2201 6th Avenue SE - Suite 2 Aberdeen, SD 57402-1985 |
Working Today for a Better Tomorrow !
Our goal, like yours, is to improve the quality of life in Northeast South Dakota by providing the tools to create and retain jobs and increase the services available in your community. To accomplish this goal, we offer professional development, planning and management services to local governments, and assist in the administration of local programs and projects.
Our goal, like yours, is to improve the quality of life in Northeast South Dakota by providing the tools to create and retain jobs and increase the services available in your community. To accomplish this goal, we offer professional development, planning and management services to local governments, and assist in the administration of local programs and projects.