A detailed process of due diligence provides objective and reliable information to support informed decision-making by the Department of Economic and Community Development (DECD). The type and scope of financial reviews and due diligence an applicant undergoes are as varied as the types of projects funded.
Financial Due Diligence
Due diligence assists in uncovering crucial facts to minimize risks and assures that DECD can make knowledgeable and timely decisions based on carefully reviewed data.
The most critical stage in the application process for business assistance, economic, community and housing development activities, financial due diligence spans the entire transaction timeline. It is the analysis and validation of all the financial, commercial, operational and strategic assumptions being made.
Financial reviews may include some or all of the following:
- Background investigations of the company, its officers and directors, and affiliated organizations.
- Review of legal and functional organization structure.
- Review of financial statements (applicant and guarantors), business/development plans, projections and related assumptions.
- EIA – DECD conducts economic impact analyses (EIA) utilizing econometric models and economic multiplier systems to: quantify the impact of a proposed project on a city, a region and the state; determine the economic development need of a project and its return on investment; and ultimately, justify public funding.
- State statutes and regulations.
For more information, contact Stephen Pons at (860) 500-2409 or firstname.lastname@example.org.