8.0. EDSR 03-08-1993 - Laserfiche WebLink

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INTEREST RATE 3. Funding fee of 3/8 percent to cover 13. Illegal activities. cost of public issuance of securities. • The interest rate is based on the current 14. Applicant onprobation,parole or market rate for five-and 10-year U.S. 4. Reserve deposit of 1/2 percent. pp pending criminal charges. Treasury issues,plus a spread over the Treasury rate based on the current 5. Underwriting fee of 5/8 percent of INELIGIBLE PURPOSES market conditions. total debenture amount. COLLATERAL ELIGIBLE BUSINESSES 1. Working capital-inventory. Collateral may include a mortgage on 2. Debt consolidation or repayment. An eligible business must be a for-profit the land and the building being financed; corporation,partnership or proprietor- 3. Refinancing. liens on machinery,equipment.,and ship;net worth of business must not 3. Refinancing. fixtures;and lease assignments. exceed$6 million;and average net profit 4. Financing a plant not located in the after tax must not exceed$2 million for U.S.or its possessions. The private sector lender is secured by a the last two years. first lien on the project and SBA by a DEVELOPMENT COMPANY second lien. INELIGIBLE BUSINESSES RESPONSIBILITIES PERSONAL GUARANTEES 1. Businesses involved in speculation. 1. Inject 10 percent of the funds Personal guarantees from all company 2. Not-for-profit corporations. necessary to complete each project. owners of 20 percent or more will be 2. Maintain a place of business open to required. 3. Newspapers,magazines,radio and the public during business hours and TV systems,book publishers,theaters listed under a separate phone number. TYPICAL 504 LOAN STRUCTURE and similar enterprises. 3. Submit an annual report containing • 1. A first mortgage (50 percent) from a 4. "Vanity"publishers,producers, financial statements,management private sector lender(non-federal funds). importers,exporters or distributors of information,a full activity report and an communications such as newspapers, analysis of its assistance to small busi- 2. A second mortgage(40 percent)from magazines,books,greeting cards,sheet nesses. CDC(100 percent SBA-guaranteed music,pictures,posters,film,tape live debenture). broadcasts or other performances and 4. Ensure that the debentures are recordings of musical programs. correctlyclosed and secured. 3. The development company or the small business concern being assisted 5. Specialty stores engaged in selling must provide at least 10 percent of the 5. Assist at least two small business products that promote or advocate ideas, concernsrear. project's cost. including political,ideological or Y REPAYMENT philosophical viewpoints. ADDITIONAL INFORMATION 6. Specialized delivery,distribution or For additional information contact your Repayment is made in monthly,level- transportation concerns which distribute local SBA office. Check your local debt installments. ineligible material. telephone directory for Small Business Administration,under the U.S.Govern- FEES 7. Schools teaching academics or ment section. ideology. 1. Development company fee not to exceed 1-1/2 percent processing fee on 8. Gambling facilities. SBA's debenture and a 1/2 percent service fee on unpaid debenture balance 9. Lending or investment companies. (paid monthly). 10. Real estate investment companies. 2. Development company legal fees 41)related to loan closing not to exceed 11. Monopolies. Issued by: $2,500 without SBA prior approval. Office of Public Communications 12. Pyramid sales plans. June 1989 U.S GOVERNMENT PRONG OFRCE:1989 0-941-485