Unit 1, Lesson 9: Completing a Loan Application 1

Colorado Agriscience Curriculum

Section: Advanced Agribusiness

Unit: Agricultural Business Records

Lesson Title: Completing a Loan Application

AGB11/12.03 - The student will be able to formulate Colorado Ag and analyze financial records and use the Education information for evaluation and planning. Standards and Complete a loan application. Competencies Math Standard 3: Students use data collections and analysis, statistics, and Colorado Model probability in problem-solving situations and communicate the reasoning used in Content solving these problems. Standard(s): Math Standard 6: Students link concepts and procedures as they develop and use computational techniques, including estimation, mental arithmetic, paper- and-pencil, calculators, and computers, in problem-solving situations and communicate the reasoning used in solving these problems.

English Standard 1: Students read and understand a variety of materials.

English Standard 4: Students apply thinking skills to their reading, writing, speaking, listening, and viewing

English Standard 5: Students read to locate, select, and make use of relevant information from a variety of media, reference, and technological sources.

Student Learning Upon completion of this lesson the student will be able to: Objectives: 1. Student will be able to complete a balance sheet to be used as part of a loan application. 2. Student will be able to accurately develop a cash flow statement. 3. Student will be able to fill out a loan application.

Time: 50 Minutes

Farm Credit website. www.ifeedtheworld.com Resource(s): Handouts provided for this lesson are courtesy of Mountain Plains Farm Credit, students will not need to use their website for this lesson; however, additional information can be sought there.

A guest speaker is strongly recommended.

Unit 1, Lesson 9: Completing a loan application 1 Italicized words are instructions to the teacher. Normal style text is suggested Instructions, Tools, Script. Equipment, and Pencil/Pen for each student Poster or drawing paper, one per student Supplies: Projector and Whiteboard One copy, per student, worksheet 1 and 2

, 2, 3, 4 Interest Approach: Idea #1 Have the cut outs of all of the farm assets on the board this can be found on the PowerPoint provided. Make sure when you cut out the animals, keep the numbers attached to the given animal. This will be used to illustrate whether the item is an asset or liability. Draw a T chart on the board one side, which reads “assets” and one side labeled “liabilities.” Have students review what an asset and a liability are and ask them to place the animals into the t-chart in the appropriate place.

Idea #2 Invite a loan officer from your local area to bring a loan application in and have your students fill it out as a class. The balance sheet is one portion of what will be needed to complete the application. If you cannot bring in a guest speaker you may want to find an application online and fill it out with your students.

Student will be able to complete a balance sheet to be used as part of a Objective 1: loan application.

Give each student an envelope with all of the cutouts in it. (You may also do this in groups) Give each student (group) a blank balance sheet. This can be printed off of the PowerPoint or you may use your record books. Ask each group to find this agribusiness person’s net worth.

Student will be able to accurately develop a cash flow statement. Objective 2: Give each student an envelope with all of the cutouts in it. (You may also do this in groups) Give each student (group) a blank cash flow statement. This can be printed off of the power point or you may use your record books. Ask each group to find this agribusiness person’s income and expenses for the year.

Student will be able to fill out a loan application. Objective 3: Best case scenario – have a loan officer come into your room and fill it out with them. Handout a loan application or let them access one online. Complete the application as a class pointing out the pitfalls for example grammar, sloppiness, and incomplete applications of not filling it out correctly.

Review/Summary:  Use the Crayon E-moment. Have each student draw a picture that defines the new words they have seen throughout the lesson. You may prompt them by having the words on the board. i.e. net worth, assets, liabilities, etc.

Application-- Extended  Have students update these pages in their record books. Classroom Activity:

Application--FFA  Encourage students to fill out proficiency awards. Activity:

Unit 1, Lesson 9: Completing a loan application 2 Application--SAE  Have students fill out a GATES Loan application to expand their SAE. Activity: Use the following questions as a verbal review. Evaluation: 1. Record books or group project handouts may be used. Key for the cash flow and balance sheet group project may be found on the Evaluation Answer power point presentation. Key:

Unit 1, Lesson 9: Completing a loan application 3