BUSINESS LOAN
PROGRAM
The Palo Verde Valley Community Improvement Fund (“CIF”) provides loans to existing business owners and entrepreneurs within the City of Blythe and surrounding communities throughout the Palo Verde Valley area which are encompassed by the Palo Verde Irrigation District service area. Ideally, the CIF prefers to provide what is known as “gap financing”, wherein we partner with other lending sources to provide the remaining needed funds to complete a project. However, the CIF also considers loan requests for business use and public benefit purposes when all other potential means of commercial financing have been exhausted. Potential CIF applicants should be prepared to demonstrate that they have sought and could not obtain financing from traditional, private, or other lending sources and are, therefore, turning to the CIF for assistance.
All loan requests must fall within the CIF Loan Guidelines and meet certain CIF Operating Policy eligibility requirements.
To be eligible for CIF loan financing:
- The loan proceeds are to be used for business purposes such as business expansion, buying an existing business, buying or refinancing a commercial building that is occupied by the business owner, on-site tenant improvements, purchasing equipment, furniture, fixtures and inventory, and working capital. [The CIF does not make loans for consumer (non-business) purposes.]
- The loan proceeds may also be used for public benefit programs such as education and vocational training to the residents throughout the Palo Verde Valley to help them obtain new jobs.
- The loan proceeds must be used for projects that are located within the Palo Verde Irrigation District boundaries.
- The borrower will need to demonstrate how the loan will be of public benefit. Will it create new jobs? Retain existing jobs? Provide vocational training or education to assist local residents to obtain jobs? Will it draw consumer spending from outlying areas to Blythe, thereby increasing tax revenue for the City?
- The borrower will need to demonstrate the ability to repay the loan by providing a complete financial package of the existing business or business to be acquired, including a Business Plan as appropriate. Entrepreneurs will need to provide a thorough Business Plan that includes at least two (2) years of income and expense projections, including the underlying assumptions for how the projections were computed.
- All parties with 20% or more ownership in the business will need to provide a complete personal financial package and fully guarantee the loan.
- All loans over $50,000 must have sufficient commercial collateral.
The Application Process is designed to streamline the loan request and obtain a decision (approval or decline) as quickly and as smoothly as possible. Regardless of the amount being requested, all loan applications will go through the same process:
- Submit a Loan Application form, either on-line, by mail, or in person describing the amount requested and the purpose for the loan.
- This simple application form is intended to initiate the process and begin dialogue between you and the CIF. Your request will be screened by CIF staff to determine eligibility for the CIF Loan Program. If it is, staff will then contact you to discuss loan pricing, structure, and loan terms and provide you with a full Loan Application Package either electronically, by mail, or in person depending on your preference. The Application Package will include a checklist of all the information needed for underwriting as well as a Summary of Estimated Loan Fees applicable to your specific transaction.
- Complete and submit the full Application Package and application fee for CIF staff review. If your request is recommended by staff to proceed, your application package will be sent to the Loan and Grant Committee for their evaluation. The Committee will either decline to endorse the Project, or they will endorse the Project and offer the applicant the opportunity to go forward, recognizing that additional costs may be incurred. If the Loan Applicant decides to move forward, due-diligence will be performed by staff and the Underwriter regarding credit history, property valuation, title, escrow instructions, etc. as applicable to each unique loan request. Even if the Loan Application is denied by the Loan and Grant Committee, the item will go to the full CIF Board for review of the project. Ultimately the Board will recommend confirmation of the denial, or offer the applicant a chance to re-engage the CIF loan process.
- Once the Loan Applicant agrees with the estimated costs incurred to fund the loan, the CIF Loan Underwriter is engaged to analyze the cash flow of the loan details. Once that analysis is complete, the Grant and Loan Committee will review for a second time the Loan Underwriter’s Report and then make a recommendation to take it to the full CIF Board for final action.
- If approved by the Loan and Grant Committee, the request will then be scheduled for the next CIF Board of Directors meeting for their ultimate and final approval.
- If approved by the Board of Directors, staff will then coordinate any further due-diligence needed, the execution of loan documents, loan closing and loan funding.
To start the process of the Initial Staff Review and apply on-line, click here:
For questions or further information before applying, please feel free to Contact Us:
CIF, Blythe, CA
For your convenience, we have included a link to a loan calculator below:
