Local Vision Investing, LLC
Criteria for Making Loans
A. Mission Related Criteria: The goal of the Local Vision Investing, LLC is to strengthen Spokane’s local economy by making small loans to locally owned and operated businesses to help them thrive. We will favor businesses that:
- Include ecological and social performance, as well as profit, a triple bottom line.
- Source their inputs primarily from Eastern Washington or otherwise promote the economic viability of the Spokane region.
- Advance sustainable practices, and
- seek to innovate.
We are currently focused on local farms and food related businesses. We will look favorably on applications from farm and food businesses that address larger social issues of hunger and public health.
B. What We Fund: We will generally make loans of $5,000 or less at 5-10% annual interest rate for terms of up to three years, although we will consider other requests. We are most interested in making loans for equipment or special projects that will help a farm or food business operate more efficiently and/or support growth. We expect that each applicant will clearly show how the equipment or project funded by loan proceeds will affect the borrower’s business and whether the project will be successfully completed using the loan by itself or in conjunction with other funding. We will consider working capital loans, especially those that lower costs. We will generally not fund start-up businesses.
C. Financial Strength of the Candidate: We are looking for applicants with good business practices and sufficient cash flows to support the loan. Strong applicants will provide the following:
1. A business plan, narrative, or financial information including:
- Profit and loss statements for the previous year and projections for the current or upcoming year.
- Evidence that the business has sufficient cash flow to pay back the loan under the terms we negotiate;
- Evidence that the business is growing, has the potential to grow, or is on a path towards profitability; and
- Information about the market and competition.
2. Credit references
3. Trade references (suppliers or customers)
4. Tax returns for prior year
5. Current and past debt history
D. About Us: We are a group of individuals using our own resources to fund loans. We live in Spokane, and want to see a vibrant, healthy Spokane economy. In addition to doing our due diligence in reviewing loan applications, we may seek input from other local organizations.
E. About our Loan Program: Please see our website (www.localspokane.com/local-vision-investing/) for loan applications. Applicants will hear from us within 2 weeks of submitting an application whether it is something we will consider. For further information, please contact LocalVisionInvesting@localspokane.com.
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