pf_02729 - Laserfiche WebLink

Home

. WAN AMOUNTS: Of the total amount of funds necessary for the specific business activity listed in the application, no more than % shall be obtained from RLF proceeds. The balance of the funds necessmy for the business activity shall either be made up of the loan proceeds funded from the private lending institution or raised from sources other than the RLF. Loans from the RLF shall be made in the amount of $ per pennanent full-time job (or equivalent part-time jobs) to be created or retained. The minimum RLF loan amount to any one business shall be $ and the maximum amount shall be $ CO] J A TERAL: The real property or capital equipment purchased with the loan proceeds shall be pledged as collateral for repayment. The applicant may also be required to provide a personal note or guarantee as additional collateral. A secondary lien position is permissible for the portion of the loan proceeds originating fTom the RLF~ such a secondary position is not permissible to a private note trom the business owner or other equity participant. When RLF loans are made in .. ~junction with Small Business Administration (SBA) loans, the RLF loan may be placed in a junior li~ position to the SBA loan. TERMS: Tenns of the loan shall be rouctured to provide no more subsidy to the business than is necessmy to meet the pro fonna business plan. Lengtb~ The term shall be established in accordance with generally accepted lending principles and shall not exceed the useful or depreciated life of capital equipment or lease-hold improvements financed. The loan shall be called if the business relocates outside of the boundaries of the City of Roseville or if the required .job creation does not occur within 2 years of the loan closing Equal or balloon principal payments: Equal principal paymen5 shall be the preferred schedule. Balloon payments may be used when necessary to accommodate cash flow prqjections in accordance with the pro forma business plan. In no case shall a balloon payment schedule be established wherein the useful or depreciated life of the financed equipment results in an undercollatera1ized loan. Interest rate~ Not less than the rate necessary to create a "blended" rate of % beneath New York prime for the total combined private lending institution and RLF loans necessary for the specific business activity listed in the application. A variable private lending institution rate may be offset by a variable RLF rate floating in the opposite direction. Origination fees: None for the RLF portion of the loan. 3