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necessary to determine the applicant's credit standing. Telephone <br />contact should be made with credit references where appropriate. <br />Credit Requirement <br />The small business concern must meet certain practical credit <br />requirements including the following: <br />1) The applicant must be in good character as determined by <br />the private lender and the Oakdale EDA. <br />2) There must be evidence that management has the ability to <br />operate the business successfully. <br />3) The small business concern must have enough capital in the <br />business so that with the assistance through the Oakdale <br />EDA and Seed Fund it will be possible for the business to <br />operate on a sound financial basis. <br />4) While the questions of security and collateral are important <br />in determining whether financial assistance will be <br />extended, they are not the only factors upon which the <br />approval or rejection of an application is determined. The <br />Oakdale EDA attaches great importance to management, <br />the inherent soundness of the small business concern, the <br />small business concern's earnings records and prospects, <br />the small business concern's long-range possibilities for <br />successful operation and whether the granting of financial <br />assistance will increase employment or have other <br />favorable effects on the economy of the City of Oakdale. <br />Financial Statement Requirements <br />The loan officer of the private lender must evaluate the <br />reliability of the financial statement submitted. All <br />statements must be signed and dated by the proprietor, a <br />partner, or unauthorized office of the applicant unless they <br />are accompanied by an independent accountant's report. <br />Statements submitted on a compilation basis must be <br />signed by the small business concern owner or designated <br />officer. <br />Business Financial Statements <br />61 <br />