APPLESEED TRUST LOAN POLICY GUIDELINES

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• Appleseed Trust is not primarily a credit program. While microcredit is a part of Appleseed's set of tools for businesses, we believe that education in the sound fundamentals of business practice is the most important service that we offer. Microcredit may not be appropriate for some of the businesses and individuals that we serve. In some cases, the credit portion of our program may be appropriate many months, or even longer, after graduation from the training program.
• While general business lending processes are covered in our Basic Business Skills Training Course, graduation from the program is no guarantee of receipt of a loan from Appleseed. However, graduation from the program is a prerequisite for consideration of a loan application.
• Credit decisions are made by a Board of Directors Loan Committee, which is composed of individuals with appropriate business experience.
• Credit decisions are communicated in writing. In the case of loan rejections, the primary reasons for the decision will be outlined in the written communication. Any subsequent discussion of the Committee decision will be with the Appleseed Program Manager.
• Appleseed will make every effort to make credit decisions in a timely fashion. However, as a not-for-profit organization depending primarily on volunteers, Appleseed cannot guarantee a specific turnaround time for loan applications.
• Once a loan application has been rejected, Appleseed reserves the right not to consider further applications from the same applicant for a period of one year. In certain cases, at Appleseed's sole discretion, the agency reserves the right to consider re-submissions of rejected applications if all of the issues communicated to the applicant have been addressed. Any discussion of re-submissions will be held with the Program Manager, at his or her discretion.
• If a loan is paid as agreed, Appleseed is willing to provide a credit reference for the borrower. "Paid as agreed" is defined as all payments having been made according to the terms of the contract, with a maximum ten-day grace period allowed for any individual payment.
• Appleseed requires that loan applications be filled out in full. Should loan applications be submitted in incomplete form, the Program Manager is instructed to return the loan application to the applicant. The omissions must be dealt with before any consideration can be given to the application.
• Appleseed maintains the right to request collateral on any loan, at its sole discretion. The decision regarding collateral is one element of individual credit decisions.
• Initial loan amounts to Appleseed clients will be a maximum $3,500 per business (not per business owner, in the case of multiple owners). Subsequent loans, up to a maximum of $5,000, may be given consideration. No more than one outstanding loan from Appleseed to any particular borrower will be allowed at any given time. Successful repayment of an initial loan does not guarantee receipt of additional loans.
• Maximum term of an initial loan will be 24 months; maximum term of any additional loans will be 60 months. Shorter terms may be required, at the full discretion of the Loan Committee.
• While Appleseed discourages loan requests for the purpose of refinancing its own loans, it may consider such requests, at its sole discretion. Appleseed will not consider loan applications for the refinancing of debt with other lenders.
• Submission of a business plan is required for consideration of the provision of credit by Appleseed Trust.
• Appleseed may obtain a credit report as part of its credit decision process. The decision as to whether to obtain a credit report will be made by the Loan Committee, at its sole discretion.
• A loan applicant must agree in writing to meet at least quarterly with a SCORE volunteer mentor who will be assigned to provide ongoing assistance to the business during the term of the loan, should the application be approved. The signed agreement to this stipulation will be obtained at the time of application, and presented to the Loan Committee as part of the application package. Failure to adhere to this policy may result in Appleseed having the right, at its sole discretion, to accelerate the terms of the loan.
• If a loan is granted, Appleseed requires that loan receipts be in the form of two-party checks made out to the borrower and individual vendors. Exceptions to this policy will be rare, and require the approval of the Chair of the Loan Committee.
• The loan provision process of Appleseed Trust is itself part of the business education process. Appleseed believes that it does a potential borrower a disservice by granting a loan when the business has not provided evidence that it is ready to handle the responsibilities of business credit.

The following is a list of criteria that Appleseed may consider in deciding whether to grant credit to an applicant - this is not meant to be a complete list, and individual circumstances may dictate consideration of other criteria:

• Sufficient capitalization of the business.
• Evaluation of management preparation and experience.
• Credibility and clarity of the business plan.
• Credit history of the business principal(s). The Loan Committee may overlook certain aspects of an applicant's credit history, at its sole discretion.
• Projected debt service coverage by free cash flow of the business. At its sole discretion, the Loan Committee may consider additional verifiable income from sources other than the business to cover debt service.
• Inconsistencies in the application, business plan, or any attachments must be reasonably explained to the satisfaction of the Loan committee.
• The Loan Committee will pay particular attention to the depth of market research and analysis that has been performed by a business applying for credit.
• Additional debt, either outstanding or being sought, will be considered as part of the credit-granting process.
• Attention will be given to the status of necessary permits, licenses, leases, etc.

Once you have read the policy guidelines and decide you are ready to apply for a loan, you can fill out a loan application. Click on the link below, print and complete the application, then send it to the address on the top of the form.

Appleseed Trust Loan Application