6.1. HANDOUT EDA 05-19-2014 - Laserfiche WebLink

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FINANCING TERMS Subject to the above criteria, the financial institution recommends the appropriate split between the institution and Initiative Foundation's participation in the project. The institution establishes its own terms and conditions for the loan with respect to interest rate, term, amortization, reporting and insurance, loan covenants and other matters. The Initiative Foundation's participation normally mirrors those same terms and conditions, with the exception of the interest rate,which ranges from five percent to seven percent. FINANCIAL INSTITUTION RESPONSIBILITIES The lender is responsible for preparing a brief application for review and consideration by Initiative Foundation staff, and closing the transaction with the borrower. • Lender Application: The lender prepares a brief application that is submitted to the Initiative Foundation. This application is accompanied by additional supporting information including a credit presentation,most recent annual review of the borrower, and a letter addressed to the Initiative Foundation specifying the proposed terms and conditions of the loan. • Loan Closing: The lender arranges a closing date for the transaction,and notifies the Initiative Foundation. The Initiative Foundation will prepare its own documents,and coordinate its closing along with the lender,if possible. BORROWER RESPONSIBILITIES The borrower must cooperate with the lender and Initiative Foundation as follows: • Information Sharing: Authorize the financial institution to provide financial and other information on the borrower to the Initiative Foundation from which the Foundation can make a credit determination. • Employment Reports: Agree to complete an employment report at the inception of the loan and annual employment surveys effective December 31,for each year the participation loan is open. INITIATIVE FOUNDATION RESPONSIBILITIES The Initiative Foundation reviews complete requests within three to five business days. Once approved, the Foundation provides a formal loan approval letter addressed to the institution. The Initiative Foundation works closely with partner institution to close the financing transaction within a timely manner. The Initiative Foundation always welcomes inquiries. Please contact Dan Bullert, Business Finance Manager at 320-632-9555 or dbullertRifoun d.org for further information.