The CDC analyzes each application in a commercially reasonable, prudent manner acceptable to SLPC, relying on business cash flow and declining where repayment is not reasonably assured, and identifies strengths, weaknesses and mitigants. Its credit memorandum focuses on the highest level of financial statements available (audited, reviewed, compiled, then tax returns, with the tax return reviewed for eligibility), states how the TPL's analysis reaches SBA on larger projects, includes a pro forma balance sheet with a complete debt schedule and discussion of post-closing credit facilities and balance sheet anomalies, and covers 2 or 3 years of statements and returns according to the size standard used, plus statements within 120 days with receivable and payable agings. It computes historical debt service coverage of at least 1.15 from EBITDA over combined post-transaction debt service (interest-only on fully drawn lines) using the last year or a two-year average, with a justified global cash flow and adjustments; where history falls short it analyzes at least 2 years of projections with justified assumptions against industry trends, shows liquidity to cover a year-one shortfall, and explains how interest and operations are paid during construction. Outside income and project property rental income may enter global cash flow only, never repayment ability.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.