INSTRUCTIONS
LOAN FUND DISPERSAL STATEMENT

USES OF FINANCING - The potential lender will require a statement of how the money you intend to borrow will be used.  It will be necessary for you to tell:
	
1. How you intend to utilize the loan funds.		
	2. Back up your statement with supporting data.
Note:  No. 2 will show the lender that  you  have done your homework properly.
			
	The following are two examples that will help to clarify your understanding of the above.
EXAMPLE 1:
	How Money Will Be Used: Funds for advertising
Back-up Statement: Refer to the advertising section of your plan. That section must contain a breakdown of how you intend to do your advertising. Rate sheets should be included in the Supporting Documents.
EXAMPLE 2:
How Money Will Be Used: Funds for expansion.  Include a concise statement explaining how you intend to expand.
Back-up Statement: Include the following information
       a.	Projected costs of carrying out plans.
       b.	Projections as to how that expansion will ultimately result in increased profits for  your business and thereby enable you to repay your loan.
       c.	References to other sections of your business plan that relate to projected expansion.