For a business plan to demonstrate the economic viability of the PFCU, it must be supported by the following key information:
- Survey results showing FOM support;
- Evidence of funding for start-up costs, indicating financial and in-kind support; and
- Identification of officials and management, indicating management support.
The business plan has three main objectives:
- Clearly document support for the PFCU via the survey results, along with commitment letters reflecting sponsor support, evidence of donations, and other commitments.
- Detail the PFCU’s goals and objectives and clearly state how and when the credit union will meet them.
- Clearly demonstrate that the goals are realistic and achievable based on the assumptions provided, and the goals agree with the financial projections. The financial projections and assumptions must show the credit union can generate sufficient income and has adequate financial resources to cover the start-up and ongoing cost of operations while maintaining an adequate level of net worth.
When developing your business plan, be sure to organize it in the same sequence as outlined in Phase 2 of this Guide. All information from Phase 2 Activities 1–4 should be compiled in one document, except the pro forma financial projections and resumes. Provide the pro forma financial projections separately in a spreadsheet format, and provide resumes separate from the business plan (ideally with all resumes in one document).
Documentation Required for Business Plan
- Submit by email to the NCUA a detailed business plan incorporating the minimum requirements outlined in the following sections.