If you apply for a credit card account, a car loan, a home mortgage, or a business loan, all prospective lenders will need to obtain important information about you before loaning you any money.  The same thing holds true for people and businesses who are applying for a grant or a loan through Hearne’s 4A & 4B Sales Tax Boards.  Since these boards are funded by local sales tax proceeds, each and every proposed project must be carefully evaluated in order to fully protect taxpayer funds. 

In order to document your application and evaluate you or your company’s worthiness to receive tax-supported economic development assistance, the Hearne 4A & 4B Sales Tax Boards may ask you for several different types of information (depending upon the type and amount of assistance requested).  The higher the amount requested, the more likely it is that you will be asked to produce greater numbers of the items listed below.  Requested information may include the following: 

• A formal business plan identifying proposed activities, roll-out dates, number & types of employees, labor pool, local economic benefits, & confirmed sources of funding to finance all aspects of your proposed business;
• A resume detailing your educational background, employment history, and professional experiences.  This resume must demonstrate a solid track record and a proven ability to manage a project of the type and scope that you are proposing;
• Personal (friends & relatives), professional (bosses & work colleagues), and financial (bank, investment, & mortgage) references;
• Your personal tax returns for the past several years;
• Your business tax returns for the past several years;
• A personal credit report identifying your previous residence addresses and how you have handled your personal financial obligations in the past;
• A business credit report identifying your company’s previous business addresses and how your company has handled its financial obligations in the past;
• A personal financial statement identifying all of your personal income, assets, and liabilities;
• A business financial statement identifying all of your company’s income, assets, and liabilities;
• Loan approval or pre-qualification documentation for government and bank loans;
• Identification and description of money you and other investors have already invested in this project (e.g., sources of funding and expenditures to date for architectural, legal, accounting, administrative, and other expenses);
• Identification and description of money you and other investors will be investing out-of-pocket in this project;
• Identification and description of collateral (money, investments, & property) that you currently own and will pledge as collateral for a possible 4A or 4B loan;
• Identification of committed investors (including dollar amounts) and the collateral these investors currently own and will pledge as collateral for a possible 4A or 4B loan;

State law identifies the permissible ways in which 4A and 4B funds may be used to promote local economic development.  Local 4A & 4B Sales Tax Boards are NOT required to fund every project which falls within state guidelines.  Rather, these local boards are charged with the responsibility of carefully evaluating each and every proposed project by making certain expenditures fall within permissible state purposes; making sure expenditures are in the best interests of the local community; protecting the need to have economic development funds available for a variety of different projects; reviewing educational, employment, and professional experience information to determine whether an applicant is a viable economic development prospect with a proven track record demonstrating he or she is capable of handling a project of the type and scope proposed.