Agenda - 04-15-2014 - 8a - Laserfiche WebLink

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Amount of Loans Maximum: $50,000 Minimum: $5,000 Should market conditions change, or in the event of an appli- cant with extraordinary conditions, a loan in amount outside of the maximum or minimum may be considered. All loans are subject to availability of loan funds. Loan Terra Maximum term -5 years (except 7 years for the purchase or improvement of real estate used or to be used wholly for the business purpose of the applicant.) Interest Rates All loans will be charged finance charges based on a vari- able interest rate. The interest rate will be based on the length of the loan term, as follows: Up to 2 years Prime plus 2.00% 2 up to 3 years Prime plus 2.25% 3 up to 4 years Prime plus 2.50% 4 up to 7 years Prime plus 3.00% The periodic rate may vary from month to month due to changes in the interest rate. The Loan Committee will assign an interest rate using the rate guidelines provided above. Fees and Expenses An origination fee, payable at closing from loan proceeds, will be charged at a rate of 1% to 1% %. The minimum origination fee will be $100. Applicant will be responsible for all other expenses related to closing the loan. The applicant will also be responsible for any fees related to any appraisals or reports required by the Program's Loan Committee. Loan Repayment Loan repayment schedules will be finalized upon loan commitment. A late payment will be assessed at 2% of the payment amount after 15 days overdue. Loans may be prepaid, in whole or in part, at any time without penalty. In the event the loan payment becomes 30 days overdue, collection procedures will begin. Repayment terms may be modified by the Loan Committee. Application Procedures Requests for application to the OCSBLP using the contact information at the bottom of this document may be initiat- ed by the principals of a company or by the company's professional advisors (attorney, bankers, and accountant). Orange County Economic Development staff will meet with the applicants to ensure completeness of the applica- tion and process applications. Applicants may be referred to the SBTDC for consultation. 26 Completed applications will be submitted to Loan Commit- tee no later than two weeks prior to its next scheduled meeting. At the meeting, the Loan Committee will decide whether or not to take action on the request, based on the infor- mation provided. The applicant will be informed in writing of the Loan Committee's decision to deny, grant, grant with condition, or seek more information. Should the Loan Committee deny the applicant's application, the Loan Committee will not consider any applications from that applicant for at least six months. At its discretion, the Loan Committee may impose any additional terms and conditions necessary to improve the loan or to secure the loan. The Loan Committee may re- quire an itemized budget detailing the proposed use of loan funds. Should the applicant think that the application has been improperly denied, then the applicant may notify, in writ- ing, the Loan Committee. The notice to the Loan Commit- tee shall state why they applicant thinks the loan should be approved. Denial of the application shall then be given further consideration by the Loan Committee. The Loan Committee decision on the loan is the final decision. The Loan Committee shall provide regular reports to the Board of County Commissioners of loans that have been approved. Any event of default or loan loss shall be re- ported to the Board of County Commissioners in writing and presented to the Board of County Commissioners at its next regular meeting following the event of default or loan loss. NOTE: Loan terms and amounts, and documents, includ- ing but not limited to financial statements, business plans, customer and supplier lists, description of inventory or assets, contractual obligations and existing liabilities, ,submitted during the application process shall be treated as confidential information. Orange County Small Business Loan Program PO Box 1177 Hillsborough, NC 27278 919 - 245 -2325 yscarlett @orangecountync.gov