Wednesday, January 07, 2009
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Items Needed for a Typical Loan Request

If you are going after a business loan, there are a few things that all banks will want to see. This list is not exhaustive, but it is a great starting point. You can click many of the items listed to access valuable tools provided for your assistance. Your bank (or VC) should be very impressed if you prepare your loan package using our tools. We have been using these tools for many years with much success!
    PERSONAL FINANCIAL STATEMENT (PFS):
    The PFS will be required for every major shareholder of the business venture. You will basically list all your personal assets and liabilities. Banks usually accept your personal estimate for the value of real estate and large assets, as long as your assessment is reasonable and your calculations are documented. Our PFS includes ideas and procedures for appraising a business using rule-of-thumb valuation methods They sometimes ask for an appraisal. If the bank does request a professional valuation, you may be able to get them to pay for it.

    A DETAILED BUSINESS PLAN NARRATIVE
    If you are looking for $500,000 or more, you will be asked to include a detailed business plan with your projected financial statements. VCs (also Investment bankers, angel investors, etc.) almost always ask for a detailed business plan.

    This is designed to be integrated with the Financial Modeling tool below.

    If you are not asked for a detailed narrative, you should not include it (in my opinion). However; every new business should go thru the steps of preparing a detailed business plan. You will learn things about your business, your industry and yourself that you would never have learned otherwise. Preparing the detailed plan will help you eliminate many variables to failure, improving your chances of success!

    PROJECTED FINANCIAL STATEMENTS:
    In most cases, the bank would like to see 3 years of historical financial statements, and 1 to 3 years of projections. You should include an explanation of how you came up with the numbers used in the projection. This financial modeling tool provides all that and more! It's designed to stand alone as Projection / Budgeting tool. It works very well as financial backup for small business loans. Integrated it with the Business Planning Narrative above for larger loan requests or presentations to Venture Capitalists, Angel Investors, etc.

    PREVIOUS YEAR's TAX RETURNS:
    Lenders will likely require the company's returns for the previous 3 years, and the major shareholders' returns for the previous 1 to 3 years.
I wish you all success as you endeavor to create or expand your business. Go make it happen!








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Vote for the other guy!
It may be time to fire your congressman.

(The house and senate) pulled a political stunt of the worst kind with the passage of the emergency bail-out bill. Instead of passing a clean bill that addressed the problems in the mortgage lending sector; congress loaded this bill with pork, unfunded mandates, earmarks, and pet projects. Whether or not you believe government is the answer to the current financial crisis, you must agree that these add-ons are fowl. This bill illustrates why congress' approval rating is so low.

Here are some of the provisions added to the final version of the bill – H.R. 1424: Unfunded Mandates:

Insurance Companies will be forced to cover mental health and substance abuse programs.

FDIC Insurance increased from $100,000 to $250,000.

There are other provisions (and extensions of existing provisions) for Wind Energy, Hydro-electric dams, further restrictions on “carbon-emitting” manufacturing companies, Biomass facilities, Mine safety equipment, railroads, etc. Frankly; it would take weeks of research to understand the final version of the 451 page bill. Please feel free to download a copy of the bill and you’ll see what I mean - http://banking.senate.gov/public/_files/latestversionAYO08C32_xml.pdf

The final vote for the house and senate are listed below for your reference.

If you are tired of bloated government that no longer represents the people, please vote against every senator who voted for this bill.

If you don’t know who your representatives are, use this link to find out. www.whoismyrepresentative.com

Send a clear message to Washington. Send these politicians home.

Anthony C. Gruber, CPA

Mr. Gruber is the principal of Gruber and Company, which has been operating in Central Ohio since 1990. You can contact him by visiting his websites:

www.ProjectedFinancialStatements.com

www.401ktest.com

The House Voting Results

263 members of the House voted for the bailout bill, representing a vote for politics as usual:

171 House members had the integrity to vote ‘No’ for this bill:

The Senate Voting Results

74 Senators voted “Yes for this bill, representing a vote for politics as usual.

25 Senators had the integrity to vote ‘No’ for this bill:

1 Senator did not vote:
Kennedy (D-MA)

Send a clear message to Washington.
If your congressman voted for this bailout bill with all the pork added to it, send her/him home.