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Business Investment Page 3 of 5 <br /> other foundations,local units of government,regional utility <br /> companies,and corporate and individual donors. <br /> • If you have any questions,please contact Allan Beilke,Business <br /> Finance Specialist. <br /> The Business Investment Loan Program application is several pages <br /> long and is not available for online downloading. To request a <br /> business loan application,please contact the Initiative Foundation <br /> directly. <br /> Top ofpage. <br /> Loan Guarantees <br /> The Initiative Foundation has established a Loan Guarantee Program <br /> available to lenders acting on behalf of their commercial borrowers. <br /> Lenders provide standard commercial financing with this program <br /> guaranteeing a portion of the loan against deficiency.The Loan <br /> Guarantee Program is intended to increase the availability of credit <br /> otherwise not available based on normal lender underwriting criteria <br /> due to the newness of the business,lack of equity,collateral valuation <br /> or other problems.The program is not intended to absorb the risks <br /> associated with a weak or poorly managed business. <br /> Program Structure <br /> A.Guarantee Amount—The program guarantees up to 80%of the <br /> original loan balance with a$50,000 maximum exposure or <br /> 80%of the loan deficiency plus expenses,whichever is less. <br /> B.Guarantee Fees—There are no guarantee or loan administration <br /> fees for this program. <br /> C.Record Keeping—At the end of each calendar quarter the <br /> lender will submit to the Initiative Foundation basic <br /> information on each loan in the guarantee portfolio. <br /> Geographic Area of Program <br /> The Loan Guarantee Program is available for business development <br /> projects located within the 14 counties served by the Initiative <br /> Foundation. <br /> Eligible Businesses <br /> In order to be eligible for assistance the business must contribute to <br /> the economic prosperity of Central Minnesota. <br /> Financing Policies <br /> A.Allowable Use of Proceeds <br /> 1.Fixed assets,including land and building purchases,building <br /> construction,leasehold improvements,and 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 refinance existing debt;and/or <br /> • <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 be <br /> adjusted monthly,quarterly, semi-annually or any other period <br /> http://www.ifound.org/html/businvt.htm 8/10/01 <br />