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Frequently Asked Questions for Lenders: Underwriting
Other Lender QuestionsEligible Businesses
What is the Agribusiness Eligibility
Form and its purpose? Since eligibility is sometimes hard to determine, the Eligibility Form is sent to us before a complete application package is submitted. Include a summary of the business and the project explaining how the business will enhance its efficiency, or how it will create or expand production of a product that will increase the use of a raw commodity. Once we notify you that the project is eligible you may begin the application process. Is there a maximum total project
cost? No, however, the maximum guarantee is the lesser of 80% of the loan or 600,000.* *$100,000 if the business commercially harvests whitefish from Lake Superior .What are WHEDA's underwriting
guidelines? WHEDA reviews nine criteria when underwriting an application. These criteria make the underwriting process more objective and predictable for both WHEDA and lenders. Your borrower does not need to meet each criteria's minimum guideline to be approved for a guarantee. If your borrower does not meet established guidelines for some of the criteria, but those weaknesses can be offset or mitigated to reduce the loan's risk, the request may still be approved. Each situation is unique. Refer to WHEDA's Underwriting Guidelines when preparing an Agribusiness Guarantee application. Does WHEDA require
personal guarantees? In most cases we require guarantees of anyone having an ownership interest of 20% or greater in the business. What financing options can we
use in combination with the Agribusiness Guarantee? We encourage you to combine as many resources as possible when completing a financing package for your customer. Other sources that have been combined with the Agribusiness Guarantee include the U. S. Small Business Administration (SBA), Wisconsin Department of Commerce and county or local revolving loan fund financing. Combining sources helps reduce the risk of each party involved. How long does it take to get a decision
from WHEDA? You will receive a decision within 3–10 business days from our receipt of a complete application package.
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