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13 <br />8. Other available financing including, but not limited to, whether other <br />financial institutions have agreed to consider traditional debt financing <br />and under~vhat circumstances. <br />9. Any other information that the Loan Committee determines that it needs. <br />SUGGESTED LOAN GUIDELINES <br />1. Creditworthiness -Although applicants will be considered with credit <br />ratings showing a history of accounts up to 30 days past due, preference <br />will be given to borrowers with good credit ratings. Applicants with <br />bankruptcy or prior to repossessions listed on their credit report will, in <br />most cases, be considered too great a credit risk for this program. <br />2. Cash Flow Coverage -The loan program is targeted to applicants with cash <br />flow coverage, prior to loan program debt, of not less than 1.1 to 1 to <br />current maturities of long-term debt. Cash Flow is further defined as net <br />income plus depreciation. <br />3. Debt to Net Worth- The loan program is targeted to applicants whose total <br />debt does not exceed net worth by 4 to 1. <br />4.- Collateral -Loans shall be secured by appropriate forms -of collateral, with <br />recorded first lien positions as appropriate. Acceptable forms of <br />collateral will be based on commonly accepted definitions (fixed assets, <br />inventory, accounts receivable, land, building, equipm-ent, or personal <br />assets). <br />PROCEDURES <br />1. Applicants will be referred to the Orange County Economic Development <br />department (Department). Department staff will meet with applicants <br />and process applications. Applicants maybe referred to the SBTDC for <br />consultation. <br />2. Completed applications will be submitted to the Loan Committee no later <br />than two weeks prior to its next scheduled meeting. <br />9 <br />