General.

CFR · 2024-01-01 · US · Title 7

(a) RUS encourages borrowers to maintain a current long-range financial forecast. The forecast should be used by the board of directors and the manager to guide the system towards its financial goals. (b) A borrower must prepare, for RUS review and approval, a long-range financial forecast in support of its loan application. The forecast must demonstrate that the borrower's system is economically viable and that the proposed loan is financially feasible. Loan feasibility will be assessed based on the criteria set forth in § 1710.112. (c) The financial forecast and related projections submitted in support of a loan application shall include: (1) The projected results of future actions planned by the borrower's board of directors; (2) The financial goals established for margins, TIER, DSC, equity, and levels of general funds to be invested in plant; (3) A pro forma balance sheet, statement of operations, and general funds summary projected for each year during the forecast period; (4) A full explanation of the assumptions, supporting data, and analysis used in the forecast, including the methodology used to project loads, rates, revenue, power costs, operating expenses, plant additions, and other factors having a material effect on the balance sheet and on financial ratios such as equity, TIER, and DSC; (5) Current and projected cash flows; (6) Projections of future borrowings and the associated interest and principal expenses required to meet the projected investment requireme

official document · source cfr-2024 · id 7:§ 1710.300