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48 <br />5. Evaluate underwriting requirements and make appropriate <br />adjustments as needed to accomplish the objectives of the <br />program. <br />6. Provide direction regarding collection (e.g. legal action, <br />foreclosure, acceleration of amortization, determination of <br />default/charge-off, etc.) <br />7. Conduct annual review of loan documents and credit files. <br />PORTFOLIO MANAGEMENT GUIDELINES <br />1. Loans to start-up businesses shall not exceed 25~ of the <br />loan pool. <br />2. The natal of loan principal past .due 30 days or more shall <br />,not for any month exceed 10% of outstanding loan <br />commitments. <br />Any exception to the above will result in a moratorium on future <br />loan requests and a review of these loan guidelines by the Loan <br />Committee: <br />SPREAD ALLOCATION <br />During the first three years of operation, ' <br />rwL~}••~'~~~ banks will fund commitments at the Prime rate in <br />order to provide sufficient spread to substantially defray <br />administrative and servicing costs, plus provide a source to <br />gradually replace the loan loss reserve established by the <br />County. Annually, this entire issue will be reviewed and <br />adjustments made as necessary. <br />mydocuments/smallbusdraft.doc <br />11 <br />