Loan Appeal Process

Community Futures West Yellowhead takes pride in its long history of working with small business clients in the region. We encourage applicants to have a strong business plan and to revisit this business plan after a rejection to make suggested changes. Many applicants have been very successful with their loan requests at Community Futures West Yellowhead in our 30-year history.

All declined loans are immediately discussed by the Business Analyst with the client by phone and followed up in writing by the General Manager with information on how to appeal a loan decision.

At any point following the loan rejection and/or during the appeal process, applicants have the option to re-apply for financing with a new and improved application package. This will be considered a new application.

All appeals must be made in writing to the General Manager and/or the Chair of the Board of Directors.

General Manager Rejected Loans (Loans Under $20,000)

If a client’s loan application for under $10,000 is rejected by the General Manager, the applicant shall have the option of appealing the decision to the Investment Review Committee.

Clients have three (3) business days to appeal a general manager rejected loan. The client’s appeal must be in writing or by email. The appeal goes to the Investment Review Committee.

Investment Review Committee Rejected Loans (Loans Over $20,000)

If the Investment Review Committee declines a loan application, clear rationale must be provided to the staff in order to provide feedback to the client.

The client must submit an appeal request to the General Manager and/or Board Chair in writing or by email. Clients have seven (7) business days to appeal an Investment Review Committee rejected loan.

The loan appeal is presented by the Business Analyst and/or the General Manager to the Board of Directors at the next regularly scheduled board meeting.

The Board of Directors will create an Appeal Sub-committee consisting of the Five (5) Directors who did not sit on the Investment Review Committee to discuss the specific loan under appeal.

This Appeal Sub-committee will meet within ten (10) business days of the appointment of the committee.

If the client’s loan application appeal is rejected by the Appeals Sub-committee, the applicant can then follow the CFNA approved external appeals process stated below.

The External Appeals Process will only be used once an individual Community Futures office has exhausted all their own Appeals Processes.

1. File is turned over to the CFNA
2. The CFNA finds a third-party office outside of the submitting CF's region, to review the Policies and Procedures of the office submitting the Appeal.
3. The third-party CF office reviews the loan file to ensure all Policies and Procedures have been followed correctly while adjudicating the application.
4. Third-party CF office reports their finding back to the CFNA with a recommendation as to whether the decision on the loan should be upheld or if there was a breach of Policy and Procedures. 
5. The CFNA shares the decision of the third-party review with the submitting CF Board. At no time shall the CFNA speak or interact directly with the appealing client. 

Note: The CFNA, nor the Third-party office have the authority to require the submitting office to change their decision even if it is found that Policy or Procedure have been breached.

Reviewed and Approved by the CFNA Board of Directors October 27, 2022