5.0. EDSR 07-08-2002 - Laserfiche WebLink

Home Browse Search

MCCF LOAN CRITERIA 1111 FINANCING POLICIES Loan Amounts: • $50,000 minimum • $2,500,000 maximum Eligible Projects: • Funded project must be within a member's area of operations. • Borrower may be a for-profit business entity, non-profit entity, cooperative, or local unit of government. • A financial institution must be a participant in the project financing. Allowable Use of Proceeds: • MCCF financing assistance may include, but is not limited to: fixed assets, including land and building purchase, building construction, leasehold improvements and renovations; acquisition, renovation or moving machinery and equipment; and working capital loans secured by fixed assets with fixed repayment schedules (not lines of credit). • Loans may not be used to refinance existing debt. Ineligible Use of Proceeds: • Speculative real estate developments. • Purchase of equity positions in business enterprises. Interest Rates: • Adjustable and fixed rate loans are available, with rates determined by the MCCF member originating the loan. Loan Term Length: • The term of each loan will be determined on a case-by-case basis, with the primary factor being the collateral offered. Loans secured by real estate will generally not exceed 20 years, and loans secured by machinery and equipment will generally support a loan term of up to 10 years, not to exceed the depreciated life of the asset being financed. When possible, the MCCF loan will coincide with the term of the participating bank loan, including any balloon maturity provisions. Fees and Charges: i • A 1.75% loan origination fee will be charged to all MCCF borrowers. This fee will be assessed only for approved loans, but must be paid at or prior to loan closing. • Borrowers are responsible for paying all legal and other loan closing costs incurred by MCCF.