The purpose of this policy is to provide clarity on:
- authorities for loan approvals at CF FFG
- the right of applicants to appeals on loan decisions
- a process for loan applicants who have reason to believe they have grounds to appeal the decision on their loan, at any of the identified levels. The appeal must be of sufficient substance to warrant a review of a final decision.
Loan Approval Authorities
The Board of Directors for Community Futures Development Corporation of Fraser Fort George (CF FFG) delegates authority to:
- the General Manager of CF FFG to review and approve loan applications up to $10,000, and
- the Finance and Lending Committee to review and approve loan applications between $10,000 and $150,000.
Businesses seeking loans over $150,000 will have their application reviewed by the Finance and Lending Committee who will:
- approve financing up to $150,000 from CF FFG and recommend that the remaining amount of financing be secured through loan syndication with fellow Community Futures; or
- approve financing up to $150,000 from CF FFG and recommend that the remaining amount of the financing be leveraged through a traditional financial institution or alternative financing arrangements; or
- Make a recommendation to the Board of Directors to finance the full amount of the loan application beyond $150,000
The Board will only review loans over $150,000 that are recommended to them by the Finance and Lending Committee.
Appeals and Redress
Any applicant who has had his or her loan request refused by the relevant CF FFG authority for that loan value may appeal that refusal. Individuals resubmitting their loan request with revisions may not appeal the original decision.
All requests for redress on a loan decision must be put in writing and submitted to the appropriate review body, with supporting documents, within five working days of the applicant being made aware of the decision. The grounds for appeal are limited to:
- The request for a loan was unfairly adjudicated because the requirements for a loan by CF FFG were clearly met by the applicant in his or her submission:
- Will be operating in the Fraser Fort George Regional District boundaries, and;
- Is a viable business opportunity as determined by usual CF FFG standards, and;
- Will create or maintain employment within the Fraser Fort George region.
- One or more of the decision-makers was in an undisclosed conflict of interest position;
- One or more of the decision-makers holds a known prejudice or biased opinions of an identified group and this directly affected the final decision; and
- CF FFG staff or Board members misrepresented the business plan to the Committee or the Board.
Syndicated loans are not governed under this policy.
Appeal process for loans $10,000 and under
Redress request of refused loan applications for $10,000 or less will be reviewed by the Finance and Lending Committee at a regularly convened meeting. It is the full responsibility of the individual seeking redress to complete the process as outlined.
The process required:
- The redress application is to be marked Confidential – Loan Redress and addressed to the Chair - Finance and Lending Committee.
- The Chair, with the assistance of the CF Administrative Assistant shall provide the information to the Finance and Lending Committee members 7 days in advance of the meeting scheduled to review the redress application.
- The Committee will meet in-camera (the General Manager and Business Analyst will be asked to leave the meeting) to review and discuss the redress application and will make a final decision on whether the loan applicant has been adjudicated unfairly based on the grounds identified above and whether the loan is granted approval or the denial of the loan is upheld.
- If it is deemed that the loan has been adjudicated unfairly, the Finance and Lending Committee may approve funding for the applicant, or may require additional information be provided prior to a full review and decision.
- The applicant will be informed of the decision within two working days of the final decision on the redress being made.
- Should there be follow-up required with an employee of CF FFG the Finance and Lending Committee will refer that portion of the matter to the Operations Committee.
Appeal process for loans $10,000 - $150,000
Redress requests of refused loan applications between $10,000 and $150,000 will be reviewed by the CF FFG Board of Directors. If time is of the essence a Special Meeting may be called, otherwise the loan redress will take place at a regularly convened Board of Directors meeting. It is the full responsibility of the individual seeking redress to complete the process as outlined.
The process required:
- The redress application is to be marked Confidential – Loan Redress and addressed to the Chair of the Board.
- The Chair, with the assistance of the General Manager shall arrange for a Special Meeting of the Board or shall choose to include the loan redress in the next regularly convened Board Meeting package.
- The Board will be required to review the specific grounds for the redress request as outlined above, and will vote on whether the decision of the Finance and Lending Committee was adjudicated fairly.
- If majority of the Board votes that it was adjudicated unfairly they will review the loan application to determine whether to approve the financing for the Business or whether additional information is required prior to a decision being made. The General Manager is to provide the Finance and Lending Committee and the client with rationale for the Board’s decision.
- If majority of the Board votes that the loan application was adjudicated fairly the Chair of the Board and the General Manager shall provide a written response to the client and offer to meet with the client to discuss the reasons for this decision.
- The decision of the Board is final.
- The applicant will be informed of the decision within two working days of the final decision on the redress being made.
Appeal process for loans over $150,000
An independent Redress Review Committee, consisting of five past Board of Directors or Finance and Lending Committee members or relevant representatives of the community at large, shall review appeals for loans over $150,000. Members of the Redress Review Committee will be identified annually by the CF FFG Board of Directors and asked to be available for a two year period on an as-need basis. Members will be informed annually as to the RRC membership, and provided with a copy of this policy. The Board may approve the advisory services of a specialist in the field of the loan request, in special circumstances; the specialist would provide information and advice to the Redress Review Committee.
It is the full responsibility of the individual seeking redress to complete the process as outlined.
The process shall be:
- The redress application is to be marked Confidential – Loan Redress and addressed to the “Redress Review Committee”
- The General Manager will call a meeting of the independent Redress Review Committee; committee members shall receive a copy of the redress application a minimum of 7 days prior to the set date of the meetings.
- The Redress Committee will meet at the agreed date and time to review the redress application:
- The members of the Redress Review Committee will select a Chair for the meeting from the members
- The members of the RRC will review the material provided, and determine if they require additional information prior to making a decision
- If, by the vote of the majority, the Committee deems the adjudication unfair based on the grounds identified in this policy, they will provide their rationale in writing to the Board Chair who will take the decision rendered back to the Board.
- The Board of Directors may choose to request additional information, provide financing over $150,000, or direct the Finance and Lending Committee to seek funding partners, or take the lead on a loan syndication with fellow Community Futures.
- If, by the vote of the majority, the Committee deems the adjudication process was fair, they will provide their written rationale to the Board Chair who will take the decision back to the Board and with the assistance of the General Manager arrange to meet with the applicant to discuss the outcome along with providing written documentation of the decision to the person.
- The decision of the Redress Committee is final.
- The decision of the Redress Review Committee will be communicated to the applicant by the Board Chair and General Manager within five working days of the final decision being made.