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CF Loan Application Checklist Document or Form Board Resolution ...

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(Guide 5) RD Instruction 1942-A<br />

I General.<br />

FINANCIAL FEASIBILITY REPORT<br />

The following may be used as a guide f<strong>or</strong> the preparation of financial<br />

feasibility rep<strong>or</strong>ts as required f<strong>or</strong> Rural Development financed facilities.<br />

The guide contains minimal requirements and the rep<strong>or</strong>t writer is expected to<br />

fully disclose and analyze all significant fact<strong>or</strong>s which will likely have a<br />

fav<strong>or</strong>able <strong>or</strong> adverse effect on the financial success of the proposed<br />

facility.<br />

A Need f<strong>or</strong> the facility.<br />

B Existing facilities.<br />

Explain current capacities, rates <strong>or</strong> usage, activities, suitability f<strong>or</strong><br />

continued use, alternate usage, deficiencies in services, staffing, physical<br />

conditions, and any other pertinent inf<strong>or</strong>mation.<br />

C Proposed facility.<br />

1 Description of construction and renovation by component parts including<br />

capacity of each component part and physical limiting fact<strong>or</strong>s.<br />

2 Explain and document the need f<strong>or</strong> the facility. Include comments<br />

regarding the following:<br />

a Service area<br />

b Population trends<br />

c Similar facilities and services in the area<br />

d Usage trends<br />

e Community supp<strong>or</strong>t<br />

f Regulat<strong>or</strong>y agency approval<br />

g Economy in the service area<br />

h Analysis of staff and consultants<br />

D Financial inf<strong>or</strong>mation.<br />

1 Explain all assumptions underlying the expected demand, use, and<br />

projections of financial data, such as:

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