Hanford Area Economic Investment Fund (HAEIF)

The Hanford Area Economic Investment Fund awards loans to for-profit corporations when there is compelling evidence that such loans will create jobs, enchance the local economy and further economic diversification. Private Business Loans provide money for working capital, research and development, purchase of land, new building construction, acquisiton and renovation of existing buildings, purchase of machinery and costs such as architectural, legal, engineering services and appraisals.

Program Overview

1. Interest Rate:  Prime, as published in The Wall Street Journal, plus a spread above prime; fixed at time of loan approval
2. Loan fee:  1.50%; deducted from loan proceeds at closing
3. Servicing fee:  .50%; added to the interest rate
4. Terms:
   • Equipment and Fixtures: 7 to 10 years; determined by cash flow projections
   • Working Capital: 3 years
   • Real Estate: 15 year amortization with 10 year calls
5. Collateral is required, with value sufficient to secure the amount of the loan.  As a normal course of business, any or all of the following may be required as collateral:
   • Furniture, fixtures and equipment
   • Real Estate
   • Personal Guarantees of principals with a 20% or more interest in the business
   • Deed of Trust on personal residence, of principals with a 20% or more interest in the business
   • Assignment of Key Person life insurance policy
   • Lien holder position on vehicle or vessel titles

Minimum Criteria

• The project must diversify or expand the area’s economic base and create jobs in Benton and Franklin Counties.
• Applicant must be a for-profit business located or headquartered in Benton or Franklin County.
• Applicant must demonstrate the need and the ability to repay and administer loan funds.
• Applicant must have been denied for a loan by a traditional lending institution.
• Loans may be required to be personally guaranteed, secured with collateral or leveraged with funding from other sources.
• Loans will not be made for less that $150,000 or for a term of more than 15 years.

Application Procedure

Depending on the amount and details of your loan request, additional information may be required to complete the application process.

Phase I

• Initial interview with HAEIF contractor, Benton-Franklin Council of Governments
• Completed, written business plan.
• A 36-month cash flow; by month: projecting income, expenses and cash available for business use.  In some cases extended cash flow projections may be required.
• Personal Financial Statement (PFS) of principals of the business and others with a more than 20% ownership in the business.
• Resumes of principal business owners and key management personnel.

Phase II

• Completed application
• $100.00 non-refundable application fee.
• Financing turn down letter from bank
• Last 3 years of personal tax returns

In addition to above Phase 1 (above), for an existing business with a past financial history, the following is required:

• Current (not more than 30 days old) and historical (past 3 years) profit and loss statement (income and expense).
• Current (not more than 30 days old) and historical (past 3 years) balance sheet of business.
• Past three years’ Income tax forms, including Schedule C, or Form 1120.  If in business less than 3 years include personal tax returns to total 3 years returns.
• Past 3 month’s bank statements.
• If incorporated, copies of By-laws; Articles of Incorporation; Certificate of Incorporation; Corporate minutes or Borrowing Resolution, to support election of corporate officers and permitting Corporation to incur debt.
• If Partnership or LLC, copies of Partnership/Operating Agreement, and Authority to Borrow

Public Loans are awarded to fund development necessary for a business or industry to expand or locate in Benton or Franklin County.  Acceptable industry categories include, but are not limited to, tourism, manufacturing, processing, research and development, assembly, warehousing, and distribution. 

Minimum Criteria

• The project must diversify or expand the area’s economic base and create jobs.
• Applicant must be a municipal corporation with economic development authority in Benton or Franklin County.
• Applicant must demonstrate need and the ability to repay and administer loan funds.
• Loans may be required to be secured with collateral or leveraged with funds from other sources.
• Funds must be used for a public facility or infrastructure development to enhance and diversify the local economy or be necessary for a business or industry to locate or expand.
• Loans will not be made for less that $150,000 or for a term of more than 15 years
• See the Public Loan Application Information / Procedure for more detailed requirements.

The Hanford Area Economic Investment Fund has a grant program for public agencies to serve as a catalyst for private capital investment and new job creation.  Eligible projects are those that focus on creating primary jobs and that encourage new development and business expansion that diversify the economy in Benton and Franklin Counties.

Grant applications may be accepted up to twice per year from the following entities in Benton and Franklin Counties. 

• Counties
• Cities
• Towns
• Port Districts
• Special Purpose Districts (e.g., public utility districts)
• Municipal corporation and quasi-municipal corporations with economic development purposes.