Requirements for Covid 19 relief loans for businesses

This might be useful for BFS clients.  The terms are good and rate is 3.3% floating interest only. These are essentially unsecured as well.

Questions for all COVID-19 Relief Loans:

  1. What activity level do you anticipate to operate at over the next six months (i.e. full shut down or reduced capacity)?
  2. What are the main impacts on your activities?
  3. Complete or partial closure of your premises?
  4. Specialized staff / employees required?
  5. Access to premises: common workspace (number of employees) or remote work possible?
  6. What are the key carrying costs for the next 6 months? (Examples : rent, insurance, electricity, salaries, financial fees, etc.)
  7. With a working capital loan and/or postponement (and support from other lenders) does this cover your cash needs for the next six months?

Some things to consider:

  • Cash and availability on your current bank line of credit?
  • Do you have other sources of funding available?
  • What are your agreements with key suppliers (and customers) on payment terms / support for the next six months?

Examples:

  • Have you undertaken discussions / negotiations with third parties?
  • Do you have line-of-sight to required raw materials for the next six months?
  • Availability or access to raw material?

Supporting Items:

  • ID plus Equifax and bank statements
  • Operating Lender Credit Facilities Agreements
  • Org. Chart Showing Beneficial Ownership
  • Org. Chart Showing Management
  • Most-recent three years of year-end financial statements
  • Most-recent interim Y-o-Y comparable financial statements (if Year-end accountant-prepared statements are more than 3 months old)
  • Aged receivables and payables listings at year-end and interim period (if applicable)
  • Projections and forecasts:
  • 6-month detailed cash flow
  • 6 to 18 months additional forecasts

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