Finance Resources
APPRO Development provides access to valuable information that your company can use while planning and projecting the cost of your new commercial building project. We have pulled together a few resources that you may find helpful when creating a business plan for your new project, preparing to meet with a lender or beginning the financial planning process.
Business Operations
Does your company have an established Business Plan? Many bank lenders and investors will require an established business plan to move ahead with development. If you need help creating a business plan, check out a great business plan template created by the SBA (Small Business Administration). There are many great resources available while creating a business plan, we like the Small Business Administration Website, it is full of great resources and tips to help you cover your bases and get started.
Lender Meeting
There are a few items that you will want to be sure you bring with you when meeting with a Lender. First, you will want to be sure that you have completed your business plan. Secondly you will want to be sure that you have prepared all necessary background information on your company (history, products, website information, etc).
You will also want to bring your company's financial information. For new businesses, Lenders typically require estimated start-up costs, projected balance and income sheets and cash flow statements. For existing businesses, you may need up to three years of balance sheets and income statements as well as a 12 month history of cash flow.
You will also want to be sure that you have gathered all preliminary information before you meet with a lender, as it is helpful to have everything together for easy reference during your meeting. Are you curious about financing? Check out our mortgage calculator.
To help make this process easier for you, we have created a checklist of items that you will need to gather to ensure that you will be prepared.
PROJECT FINANCING CHECKLIST
(1) Type of Financing
• Bank/Lender Contact information
- Address
- Contact Name
- Telephone Number/Fax Number
- Contact E-mail
• SBA Contact Information (if applicable):
- Address
- Contact Name
- Telephone Number/Fax Number
- Contact E-mail
• Owner Financed (D & B information needed):
- Address
- Contact Name
- Telephone Number/Fax Number
- Contact E-mail
(2) Your Business Plan
(3) Title Company Information
- Address
- Contact Name
- Telephone Number/Fax Number
- Contact E-mail
- Is your Title Company planning to pay subs directly?
(4) Important Questions To Answer
1). What is your anticipated date of closing on construction financing?
2). If required by bank, is your appraisal ordered/completed?
3). Are the Environmental Reports/Phase I required/complete?
4). Does your bank need a copy of the Purchase Agreement (if applicable)?
5). Is approval required of our draw forms from bank & Title Company?
6). Do your bank and/or Title Company and/or appraiser need a set of construction documents
and specifications?
7). Does your bank require a copy of the signed AIA Contract?
8). Is a sworn construction statement required by bank and/or Title Company?
9). Is an ALTA Survey required? If so, certified to who (ask Title Company to fax certification
language)?
10). Is early start approval needed?
11). Is a title inspection required?
12). Who will put Business Risk Insurance coverage in place - APPRO Development or Owner?
13). Does your bank require a Certificate for APPRO Development's insurance coverage - General
Liability & Workers Compensation?
14). Are city & utility letters needed for closing of construction financing?
15). Have you obtained a checklist from bank and/or title company for items needed for closing?
16). Has your bank faxed the Contractors Assignment of Contract for our review (if document will
be required)
17). Who should APPRO Development send the monthly pay requests to?
18). Will your funds be wired to APPRO Development? If yes, please advise and we'lll send wiring
instructions
19). Do you have subcontractors you intend to contract with yourself or that you would like us
to invite to bid?
(a) We require Subcontractor to be an LLC or a Corporation and they must comply with our
insurance requirements for your protection
(b) If they are an individual/sole proprietor - you may contract with them directly and pay
them direct. We do recommend that they carry adequate insurance to reduce your
potential exposure and liability. The Minnesota 2% construction contractor withholding
requirement may apply as well.