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44 <br />Araaram debt, ~-- '------~~~~~ '--F~~°''-~ of not less than 7:.1 <br />to 1 to current maturities of long-term debt. Cash Flow is <br />further defined as net income plus depreciation. <br />3. Debt to Net Worth - The loan program is targeted to <br />applicants whose total debt does not exceed net worth by 3 <br />to 1. <br />4. Collateral -- Loans shall be secured by appropriate forms of <br />collateral, with recorded first lien positions as <br />appropriate. Acceptable forms of collateral will be based <br />on commonly accepted definitions (fixed assets, inventory, <br />accounts receivable, land, building, equipment, or personal <br />assets) . Ad~-r~rc~~a~t~ Loran amount should be limited to the <br />following percentages of value of collateral: Inventory - <br />50%; accounts receivable - 70% e~ (limited to accounts <br />receivable less than 90 days in age); unimproved real <br />estate - 50% commercial real estate - owner-occupied <br />maximum 80~ ~7'tT, or a-5~ TT"_'~__r Vic- ~o =a= non-busime5s <br />related real estate maximum 85`x; new equipment -~ 80~-~ a~ <br />used equipment - 60°s. <br />LOAN PROGRAM ADMINISTRATION <br />Administration of this loan program shall initially be performed <br />by the Orange County Economic Development Commission and the <br />Loan Committee. An outside vendor acceptable to the ~~ ~..~..ti'~ <br />___~t-"-~~'_____ banks the Oran a Count Small Business Loan. <br />Pro ram Com an and the County ~a-i~ ~ be utilized to <br />underwrite and service these loans, to include billing and <br />generating administrative reports. <br />PROCEDURES <br />1. Applicants will be referred to the Orange County Economic <br />Development Commission. Commission staff ate will meet with <br />~ a licants and process applications. ?'~'ee~ee~~~ <br />De~~~ap~teat Ee~r~~A licants ma be referred to the SBTDC <br />for consultation. <br />2. Completed applications will <br />Committee no latex+ than two <br />scheduled meeting. The Loan <br />once monthly. <br />be submitted to <br />weeks prior to <br />Committee will <br />the .Loan <br />its next <br />normally meet <br />7 <br />