Orange County NC Website
Browse       Search
20 <br />Attachment 2 <br />3. At the scheduled meeting, the Loan Committee will discuss the strengths and <br />weaknesses of complete loan application(s) and decide whether or not to take <br />action on the request, based on the information provided. The Loan Committee <br />may invite the applicant(s) to a meeting in order to provide additional <br />information. <br />4. The applicant will be informed in writing of the Loan Committee's decision to <br />deny, grant, grant with condition, or seek more information. Should the Loan <br />Committee deny the applicant's application, the Loan Committee will not <br />thereafter consider any applications from that applicant for at least six months. <br />5. At its discretion, the Loan Committee may impose any additional terms and <br />conditions necessary to improve the loan or to secure the loan. The Loan <br />Committee may require an itemized budget detailing the proposed use of loan <br />funds. <br />6. Should the applicant think that the application has been improperly denied, then <br />the applicant may notify, in writing, the Loan Committee. The notice to the Loan <br />Committee shall state why the applicant thinks the loan should be approved. <br />Denial of the application shall then be given further consideration by the Loan <br />Committee. The Loan Committee's decision on the loan is the final decision. <br />7. The Loan Committee shall provide regular reports to the Board of County <br />Commissioners of loans that it has approved. Any event of default or loan loss <br />shall be reported to the Board of County Commissioners in writing and <br />presented to the Board of County Commissioners at its next regular meeting <br />following the event of default or loan loss. <br />8. Loan terms and amounts, and documents, including but not limited to financial <br />statements, business plans, customer and supplier lists, description of inventory <br />or assets, contractual obligations and existing liabilities, submitted during the <br />application process shall be treated as confidential information. <br />PORTFOLIO MANAGEMENT GUIDELINES <br />1. Loans to start -up businesses shall not exceed 25% of the loan pool. <br />2. The total of loan principal past due 30 days or more shall not for any month <br />exceed 10% of outstanding loan commitments. <br />3. Funds accumulated from the repayment of approved and issued loans, may <br />be used as a source of funding for new loans. <br />Any exception to the above will result in a moratorium on future loan requests and a <br />review of these loan guidelines by the Loan Committee. <br />