Documentation Requested During a First National Due Diligence Process for Golf Course Loans

As you work through the First National due diligence process, you can anticipate being asked to provide documentation to complete the Due Diligence Package. Timely submission of this documentation can keep your approval process on track for completion according to a reasonably expected timetable. While all deals are unique, and requirements vary according to loan type, a typical loan transaction would include a review of the following:

  • Facility: You may be asked to provide the course statistics (course yardage, pars, hazards, etc), course routing plan; and details regarding structures such as a clubhouse, maintenance building and cart storage, food and beverage operations, and pro shop operations.
  • Ownership: First National will ask to review all formation documents, bylaws and amendments, as well as a list of principals and owners.
  • Financial Information: You will be asked to supply actual annual financial statements and tax returns, as well as detailed projections of revenue sources including membership fees/dues, greens fees, cart fees, food and beverage, and pro shop. On the expense side, details of turf maintenance expenses, payroll and benefits, and equipment leasing costs will be reviewed in addition to departmental expenses for food and beverage operations and the pro shop.
  • Management and Staff: Resumes for all key operating staff will be requested, including details as to their prior experience managing courses. If a management firm will be handling day to day operations, its proposal will be requested as well.
  • Permits & Approvals: First National carefully reviews culinary and irrigation water sources and uses in addition to all zoning and permit approvals; wetlands, environmental, archeological, endangered species and geotechnical investigations.
  • Contracts: To ensure that every element of a project has been adequately planned for and implemented according to industry best practices, contractual agreements and resumes for key party participants will be requested. These may include the golf course architect, clubhouse architect, irrigation designer and builder; and other consultants such as project engineers, and all prime contractors engaged for the course, clubhouse/structures, roads and parking.

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