| Sales size: |
Up to $30,000,000 in annual sales.
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| Location: |
The business must be headquartered in New York State, New Jersey or southern Connecticut
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Operating history:
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Two years or more of business operations
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Existing ownership:
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One year or more
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| Financial criteria: |
- Positive tangible net worth (including subordinated shareholder loans).
- Profitable operations for most recent fiscal year and year-to-date.
- Net income plus depreciation and amortization for past twelve months at least equal to proforma current maturities of long term debt plus additional interest expense.
- Positive trend in sales and earnings
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Other criteria:
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- No outstanding judgements.
- No past due taxes.
- No material litigation.
- Acceptable personal and corporate credit history.
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Size of loan:
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From $100,000 to $1 million.
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Maximum maturity:
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Seven years (strong preference for shorter maturity)
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Interest only period:
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Up to six months
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Pricing:
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- Interest: Prime + 4%
- Fees: 2 points payable half at commitment and half at closing
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Use of proceeds:
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Primarily to support growth and expansion. In certain circumstances may be used for management buyouts.
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Covenants:
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A leverage and debt service test may be required on loans of over $500,000, but will be consistent with bank covenants
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Collateral:
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Security interest in all corporate assets subject to priority of member bank filings
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Personal guarantee(s):
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Required
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Key person life insurance:
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Required (may be pro-rated if more than one business owner)
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Information Requirements:
A full application package will consist of the following:- NYCIC Loan Application Letter signed by borrower.
- Borrower CPA-prepared financial statements for past three years (or length of time in business if less than three years).
- Borrower's most recent tax return if financial statements are compiled.
- Most recent interim financial statement.
- Projections (including p&l, cash flow and balance sheet) for current and next fiscal year (monthly projections preferred).
- Personal financial statement of guarantor(s) on bank form.
- Most recent personal tax return of guarantor(s).
- Lien and litigation search.
- NYCIC Underwriting Proposal form completed by bank officer.
- Copy of bank credit analysis. (NYCIC will provide the bank with a non-reliance letter in the format attached.)
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How to Submit Request:
Please follow the directions below to submit a request to NYCIC:
- Call NYCIC (212 693-0870) to discuss deal.
- Collect information.
- Submit Information Requirements to NYCIC for review and approval.
- NYCIC may require an on-site visit with potential borrower.
- Normal turnaround time for approval on complete submissions should be two weeks or less. Standard closing documents will be employed for rapid closing and may involve nominal legal costs to customer.
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