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16 <br />Attachment 2 <br />6. Provide direction regarding collection (e.g. legal action, foreclosure, acceleration <br />of amortization, determination of default/charge -off, etc.) <br />7. Conduct annual review of loan documents and credit files. <br />FUNDING <br />The County has provided initial funding for the Program, with the understanding that the <br />Program will eventually develop into a self- sustaining revolving loan fund. <br />COMMITMENT PERIOD <br />The County will support the Program until demand for the Program is no longer <br />present, or until it is no longer financially feasible. <br />ELIGIBILITY <br />• Businesses must be located within Orange County in areas zoned appropriately <br />for their use. <br />• Applicant's length of residence in Orange County may be considered in <br />assessing the applicant's degree of commitment to the community. <br />Preference will be given to Orange County residents during the loan review <br />process. <br />• Applicants must be for - profit business entities whose gross revenues do not <br />exceed $3 million /year. <br />• Applicants must be willing to contract for management and technical assistance <br />if determined to be necessary by the Loan Committee. <br />• Applicants must have an equity contribution in the business of at least 10 %. <br />• All owners of the business may be required to execute an Unconditional <br />Guaranty Agreement for the full amount of the loan. Additional Guarantors may <br />be required by the Loan Committee. <br />• Applicants with any natural person owner who has pending criminal charges or <br />who has been convicted of a crime and is still serving an active prison sentence, <br />is on probation or is on parole is not eligible for an Orange County Small <br />Business 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 <br />50% or 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 up fit and lease -hold improvements. <br />8. A small business loan request that is to be used in conjunction with other <br />financing will be considered on a case -by -case basis. <br />9. Work force expansion. <br />LOAN PROCEEDS SHALL NOT BE USED FORTH E FOLLOWING <br />1. Refinancing of existing bank debt or investor loans. The Loan Committee may <br />grant an exception of up to 50% of loan value. <br />