Working Capital Loan
ABOUT SMALL BUSINESS LOANS
A Working Capital Loan is a loan that is designed to assist with annual working capital needs. This loan can be recurring on a year-to-year basis and is paid back within one year. Loan proceeds may be used for inventories, maintenance, repair, new or used equipment, fees, insurance and gear.
Loan applicant must be a resident of the Quinault Indian Reservation or an enrolled member of the Quinault Indian Nation.
Applicant must complete an assessment and application, have verifiable income, complete a business plan, and attend business classes as directed by their training plan (the Business Coach works with the customer to identify training needs and creates a training plan.)
Applicant must read the loan application carefully to determine other requirements.
$5,000 to $30,000.
Taala staff will assess each applicant and determine training needs prior to and after funding. A written training plan will be developed which may require certain goals to be completed prior to funding. A seasoned business person applying for funding may meet training requirements by sharing their knowledge and/or expertise with other training clients.
Discounted collateral value must be at least 50% of the loan amount. First liens are preferred; second priority liens may be acceptable by approval of the loan committee.
First-time applicants must have a business plan that includes an outline of how the business will operate and perform during the loan term and an assessment of the product and demand for the product. The plan will discuss key assumptions driving the business and will include operating projections and at least breakeven cash flows within 12 months of loan closing.
Applicants that are applying for a subsequent working capital loan do not have to submit another business plan unless requested by Taala Fund.
The borrower must have invested equity in the form of cash or other assets of at least 10% of the project cost.
LOAN FLAT FEE
Taala Fund charges a flat 9% fee for working capital loan.
The loan repayment may be between 15% and 30% of gross income until the loan is paid off. The actual repayment percentage will depend on customer’s specific situation as assessed by the loan officer and approved by the loan committee.
PAST LOAN DEFAULTS
Applicants who have defaulted on prior loans with Taala are not eligible until they have paid the defaulted loan in full, including penalties, interest and collection costs.
Taala Fund may require automatic deductions. Whenever possible, Taala Fund will seek repayment through third parties or through auto deduction from a bank or employer. Example of a third party payment is 15% payment deduction from a fishing “catch” or delivery. Payment is deducted and made from Quinault Pride Seafood via Centralized Accounting and payable to Taala Fund.
There is no closing fee due to the flat fee charged for working capital loans.
The borrower is responsible for paying the cost of legal, recording, filing, appraisal and other costs incurred by Taala in connection with loan processing
An NSF fee of $50 will be charged for each payment made by check and subsequently returned to Taala by the borrower’s bank.
Loan documentation is subject to the legal jurisdiction of the Quinault Indian Nation
A working capital loan agreement will be developed for each borrower outlining reporting and other information required during the life of the loan and it will be signed by the borrower and any guarantors at closing.