What is the maximum loan amount that First National will finance?
First National has historically lent on a basis of value, as determined by the appraisal, and that has generally been up to 65% Loan to Value (LTV).

Where does First National lend?
First National primarily lends to golf properties located throughout the Continental U.S. On limited occasion we will look at golf and golf-related properties located outside the normal footprint of our lending area on a case by case basis.

What costs are involved in obtaining financing?
The borrower is responsible for the direct costs associated with the closing of the loan. Among those may include the cost of obtaining an appraisal report from an unrelated third party, the borrower's and First National's legal costs associated with the actual closing of the loan, and the direct expenses related to the First National site inspection.

Does First National finance golf carts and turf maintenance equipment?
First National does not finance equipment such as carts or maintenance machinery. Our loan programs cover the course operations and property and at times First National also financial membership initiation fees.

How long is the loan closing process going to take?
The timing for closing is dependant upon how quickly and completely First National receives all of the necessary due diligence materials. Since we need to assess every piece of information we receive, we tell potential borrowers to expect at least a 30 time line from our receipt of the last piece of due diligence information to the anticipated closing date.

While no two loan requests are identical, typical timing from acceptance of the Letter of Intent to loan closing is generally 30-45 days for a refinance involving an operating golf course with no construction component, and typically 45-75 days for any loan request involving construction financing.

What kinds of information does first national require?
Because each loan request is unique, we need to understand every aspect of the course's operations, ownership structure and strategic business plan. There are many environmental, financial, legal, operating, management and other issues to comprehend in financing a golf property. It is only by performing a thorough review of all areas of operation that we can make intelligent business decisions.

Can't I provide certain information after we close?
We require the information during the loan process because the items we have detailed are critical to our evaluation of the loan request and must be assessed by our staff to determine the maximum loan available to you under your circumstances.

How are the First National Reserves utilized?
While loan reserves ultimately remain the property of the borrower and will be refunded either upon the maturity of the loan or the achievement of a pre-determined measurement standard (for example, the attainment of a certain debt service coverage ratio), they are established to provide additional security in the event of a loan default.