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Business Investment Page 3 of 5 <br /> <br />other foundations, local units of government, regional utility <br />companies, and corporate and individual donors. <br /> <br />If you have any questions, please contact Allan Beilke, Business <br />Finance Specialist. <br /> <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 /> <br />Loan Guarautees <br /> <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 /> <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 /> <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 /> <br />Eligible Businesses <br />In order to be eligible for assistance the business must contribute to <br />the economic prosperity of Central Minnesota. <br /> <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 /> 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 /> <br />http ://www.ifound.org/html/businvt.htm 8/10/01 <br /> <br /> <br />