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7 <br /> SUGGESTED LOAN GUIDELINE <br /> 1. Creditworthiness - Although applicants will be considered with credit ratings showing a <br /> history of accounts up to 30 days past due, preference will be given to borrowers with <br /> good credit ratings. Applicants with bankruptcy or repossessions listed on their credit <br /> report will, in 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 a cash flow <br /> coverage, prior to new debt, (as hereafter defined)of not less than 1.1 to 1 to current <br /> maturities of long-term debt. Cash Flow is further defined as net income plus <br /> depreciation. <br /> 3. Debt To Worth - The loan program is targeted to applicants whose total debt does not <br /> exceed net worth by 3 to 1. <br /> LOAN PROGRAM ADMINISTRATION <br /> Administration of this loan program shall initially be performed by the Orange County <br /> Economic Development Commission. An outside vendor acceptable to the financial institutions <br /> and the County will be utilized to service these loans, to include billing and generating <br /> administrative reports. <br /> PROCEDURES' <br /> 1. Applicants will be referred to the Orange County Economic Development Commission <br /> who will meet with them and process applications. This process will utilize the services <br /> of the NC Small Business& Technology Development Center(SBTDC)or other small <br /> business consulting resources that might be available. <br /> 2. The County will submit completed applications to the Loan Committee no later than two <br /> weeks prior to its next scheduled meeting. The Loan Committee will normally meet <br /> once monthly. <br /> 3. At the monthly meeting, the Loan Committee will decide whether or not to take action <br /> on the request, based on the information provided. The County will inform the applicant <br /> in writing of the Loan Committee's decision. Should the Loan Committee deny the <br /> applicant's application, the Loan Committee will not consider any applications from that <br /> applicant for at least six month. <br /> 4. At its discretion, the Loan Committee may impose any additional terms and conditions <br /> necessary to improve the loan or to secure the applicant's loan. <br /> 5. Should the applicant feel that his/her application has been improperly denied, then he/she <br />