Agenda - 3-2-15 Reg. Meeting - Laserfiche WebLink

Home Browse Search

G. Any individual or entity owning more than 10% of the applicant company must be willing to sign a personal guaranty. Spousal guaranty will also be required. The potential guarantors must provide a completed financial statement dated within 60 days of the application date and Federal tax returns from the past two years prior to the application date. H. Provide proof of insurance with the RLF as the loss payee for that which is collateral. I. All guarantors must provide a personal financial statement annually. J. Applicant must provide financial statements (balance sheet and profit and loss statement) on an annual basis. K. Other factors as the Loan Committee may deem appropriate. Section 6 — Security for Loans: All loans will be secured by a note and deed of trust on the real property with the County listed as lienholder. The deed of trust shall not be subordinated to any other lien except for the primary loan on the project. In addition, if the loan is for capital equipment, a security agreement and UCC statement shall also be properly filed. If applicable, the County will be furnished with a proper title opinion, as well as ALTA, builder's all risk, flood insurance (if needed) and hazard insurance certificates in favor of the County as lienholder. The applicant shall be responsible for all costs related to these requirements. Section 7 — Maximum Loans: The maximum amount that may be loaned from the RLF program is $100,000. Section 8 — Terms: Due to the nature of this program, flexible loan terms are permitted to the degree needed by the project. Quarterly or monthly payments of principal and interest on the unpaid balance shall be considered the norm. Any deviation from the norm shall be justified by the applicant through the project pro -forma and other supporting documentation. In order to have an adequate turn around on loan funds, the following minimum criteria shall be followed: A. Principal or interest payments shall not be deferred for a period greater than two (2) years. B. Maximum term for loans shall be 5 years, including any deferment periods. An optional two -year extension may be requested. 5