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Business Investment Page 4 of 5 <br /> renovations;and/or <br /> 2.Acquisition,renovation or moving machinery and <br /> • equipment;and/or <br /> 3.Working Capital. <br /> B.Non-allowable Use of Proceeds <br /> 1. Generally not to refmance existing debt;and/or <br /> 2.Alcohol related businesses,pornography, speculative <br /> ventures or gambling operations. <br /> C.Interest Rate—Interest rate may be fixed or variable and can <br /> be adjusted monthly,quarterly,semi-annually or any other <br /> period agreed upon by the borrower and lender. <br /> D.Term of Loan Guarantee—The term of the guarantee shall not <br /> exceed five years,however,the loan can be amortized up to 15 <br /> years. <br /> E.Collateral—Collateral securing the guaranteed loan may <br /> consist of land,buildings,machinery,equipment,furniture, <br /> fixtures,vehicles,inventory,accounts receivable,mortgages <br /> on fixed assets held personally,assignment of the interest in a <br /> Contract for Deed and assignment of life insurance. <br /> F. Other Financing Policies <br /> 1.The recipient of a loan guarantee must be a for-profit <br /> business entity organized in any manner permitted by the laws <br /> of the State of Minnesota. <br /> 2.All loans must be adequately secured and personally <br /> guaranteed to the satisfaction of the program staff. <br /> 3.All loan guarantees shall be subject to whatever agreements <br /> and documents are reasonably necessary to protect the interest <br /> of the program sponsors and to ensure that the purpose and <br /> intent of this program are met. <br /> 4. Loan applicants must demonstrate that they are credit <br /> worthy and have the ability to perform under any agreement <br /> entered into with the lender. <br /> 5.All applicants receiving financing assistance must <br /> demonstrate an acceptable level of job creation or retention. <br /> 6.This program is not intended for restructuring or refinancing <br /> of existing debt with the lender. <br /> Application Process <br /> 1.Lending official and applicant discuss project eligibility with <br /> Initiative Foundation program staff. <br /> 2.Lending official completes application forms and submits <br /> application and exhibits to the Initiative Foundation. <br /> 3.Program staff reviews application.Application is presented to <br /> the President for final approval or denial. <br /> 4.Lender executes Loan Guarantee Agreement and loan is closed <br /> in accordance with the Guarantee Agreement. <br /> Note:At any point in the review process, the application may be <br /> denied or sent back for further information. <br /> Download a PDF version of the Loan Guarantee Application <br /> (64K) <br /> ( & , View and print with Adobe®Acrobat®Reader Software. <br /> • Top of page. <br /> Seed Investments <br /> http://www.ifound.org/html/businvt.htm 9/5/02 <br />