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• 4 <br /> 7. Individuals with an ownership position of 20% 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 /> 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 /> 5. 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 <br /> Collateral section. The loan committee may grant an exception of up to 50% of loan <br /> value.) <br /> 2. Purchase of equipment or improvement of real estate which is used as personal <br /> 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 /> 6. Lending or investment. <br /> 2 <br />