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4 <br />5. Applicants must be willing to contract for management and technical assistance if <br />determined to be necessary by the Loan Committee. <br />6. Applicants must have an equity contribution in a start-up business of at least 15 %. <br />7. Individuals with an ownership position of 10% or more of the outstanding shares of stock <br />of the business will be required to execute an Unconditional Guaranty Agreement for the <br />full amount of the loan. <br />8. A personal guarantee will be required of the owner(s) of the business. <br />ELIGIBLE USES OF LOAN PROCEEDS <br />1. Working capital or operational funds. <br />2. Purchase of equipment, commercial -use vehicles, or machinery. <br />3. Improvement of owner - occupied commercial property. (Owner must occupy 50% or <br />more of total space.) <br />4. Start-up funding. <br />S. Expansion of business services or products. <br />6. Acquisition of owner - occupied commercial real estate (7 -year maturation). <br />7. Tenant upfit and lease -hold improvements. <br />8. A small business loan request that is to be used in conjunction with other financing <br />vehicles will be considered on a case -by -case basis. <br />LOAN PROCEEDS SHALL NOT BE USED FOR THE FOLLOWING <br />1. Refinancing of existing bank debt or investor loans. (Refer to exception in Collateral <br />section. The loan committee may grant an exception of up to 50% of loan value.) . <br />2. Purchase of equipment or improvement of real estate which is used as personal property. <br />3. Political activities. <br />4. Owner salary and dividend payments beyond an agreed amount. <br />5. Speculative ventures (Examples; drilling for gas or oil, commodity futures) <br />2 <br />