IMMDF’s mission is to promote economic development and rehabilitation in Iraq by supporting commercially viable enterprises. The application process is designed to ensure that the applicant will contribute to Iraq’s development and pay back the loan with interest. All information shared with IMMDF is held in the strictest confidence.
The application form shares basic information about the applicant including the names of company shareholders, references, capital structure, and the uses for the loan.
The business plan is a detailed explanation of how the loan funds will be used to generate income for the Iraqi enterprise. The business plan should explain in detail why the project is a wise investment. It should emphasize facts about the business rather than sales and negotiating tactics. Click here to view a guide to business plan writing.
Historical Financial Information
IMMDF needs to understand the businesses it lends to and the best way to do that is by looking at past performance. IMMDF asks applicants to send a balance sheet, income statement, and cash flow statement for each of the last three years. Click here for details.
Personal Net Worth
For new businesses with no financial history, IMMDF requires applicants to summarize their personal net worth.
CVs for all the company’s owners and key managers should show employment histories and educational background. IMMDF must be confident in the individuals who are running the company. The CV is a way for applicants present facts explaining what makes the applicant’s management team qualified to succeed.
Background and Reference Check
The absence of credit reporting or independent auditors in Iraq require IMMDF to rely on the reputations of their applicants. IMMDF staff will speak with references provided by the applicant, suppliers, customers, and any other Iraqi’s who have personal or business contact with the applicant.
Letter of Intent
This document, signed by both IMMDF and the applicant, describes the obligations of both parties before IMMDF moves into a more thorough due diligence process. A non-refundable fee of $2,500 is required from the applicant at this time. The fee is to cover defer the costs IMMDF occurs during the application process. If the loan application is accepted, the fee counts against the loan closing fee.
The due diligence process is different for every applicant but in general it involves fact checking the information already provided us by the Iraqi enterprise. Prices, costs, supplier relationships, customer relationships, and other important pieces of information all must be checked by IMMDF before a loan can be approved. The applicant is expected to cooperate whenever needed and to be as transparent as possible with IMMDF at all times.
Labor and Environmental Checks
IMMDF must ensure that the loan funds will not be used in a way that is socially destructive or irresponsible. The applicant’s only role here is to answer questions about their corporate citizenship.
Approval and Loan Agreement
If a loan is approved, IMMDF will write a legal contract to govern how the loan will used and on what terms the loan will be paid back. The document also includes conditions that must be met before the loan funds can be disbursed.
The borrower must show that they have complied with all conditions in the loan agreement before receiving funds. IMMDF prefers to pay vendors directly for equipment and other items to reduce the risk that funds will be misused. However, IMMDF’s first priority is ensuring that our borrowers are successful so we are flexible about this rule as long as the borrower documents their purchases and is open to site inspection by IMMDF staff.