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General Underwriting Guidelines
General Underwriting Guidelines
 
Requests for a commercial "unbundled loan" package  for the purpose of take out financing of residential loans is constructed of aggregate underlying individual loans.  The request size is not as consequential as is the consistency and quality of underwriting for each individual loan that makes up the package.   For the small energy loan program to underwrite a take out loan request for a local government or a commercial project ODOE will review the request considering the following areas to ensure a consistent residential program is in place and that risks for the manager are reasonable.
 
 
For question about the EEAST program, contact Dan Elliott, 503.373.2123.
 
 

Residential Loan Applications
 
Application Process:
 
Application should  be complete and include:
financial statement
income verification (tax returns or pay stubs/employment verification)
project technical information, and
collateral support, collateral value and marketability, total debt ratio and housing debt ratio, estimated energy savings, consumer credit report

Commercial Loan Applications
 
Borrowing Entities:
Sole Proprietorship Partnerships (general and limited)
Corporations (sub chapter C & S)
LLC (taxable as corporation or partnership)
Application Process:  Process can be similar to the residential application for a small family business but it usually involves separate business financial information that can range from simple to quite complex. Applicant should supply the following:
Complete application
Financial statement from borrowing entity and any cosigners or guarantors
Two years tax returns from the above entities
Project technical info and any energy evaluation
Project budget and planned development schedule
Information on collateral, liens, on-bill payment, PACE,  etc.
Articles of organization, Authority to Enter into a Contract
Financial Evaluation:
Personal vs. business financial information (when to use which)
Balance Sheet and Income Statement
Cash Flow Statement
Sources and Uses of Funds
Credit Report
Ratio analysis: debt to worth and current ratios
Industry analysis
Guarantors
Risk Assessment:
Industry analysis and market factors
Necessity of project and facility
Company leverage
Collateral value and marketability

Public Sector Loan Applications
 
Borrowing Entities:
Municipalities (Cities and Counties)
State Agencies
School Districts
Special Districts
Application Process:  Process will be somewhat different than the residential and commercial applicants.  Although we still will review two years audited financial statements, a heavier weight will be given to the estimated energy savings and project technical criteria.
 
Financial Evaluation:  The financial review should focus on the Borrowers budget, revenue stability and consistency and their ability to control expenses.  We should check to see if they have established a bond rating and how much bond debt is outstanding.
 

Non-Profit Loan Applications
 
Application Process:  Process will be similar to the Public Sector loans.  We require two to three years audited financial statements that include balance sheets and income statements. Also review the current year budget.
 
Financial Evaluation:
Stability of revenues and their ability to control expenses
Sources of revenue (operations, gifts, grants, government funds)
Budget vs. actual revenue and expenses
Collateral value (specialty nature, will state foreclose)