The RLF shall exercise flexibility in negotiating terms with applicants and the participating financial institutions. The following conditions, however, are set as minimum guidelines:
(A) The RLF reserves the right to sell their interest in a loan package where the Revolving Loan Fund Board deems advisable.
(B) The RLF would accept convertible subordinated debt, with or without deferral provisions for either principal or interest.
(C) Where appropriate in debt position, liens will be taken covering all assets. A subordinated position will not be accepted where an inordinate amount of risk is evident.
(D) Personal guarantees may be required of owners who control at least 20% of the company.
(E) The RLF will impose the following maximum term requirements and restrictions on loans:
(1) Building: 10 - 20 years.
(2) Machinery and equipment: 5 - 7 years or the usable life of the equipment.
(3) Working capital: 2 - 4 years.
(F) Rates will be negotiated by the RLF Board, but in no case shall it be less than 4%.
(G) In negotiating terms for potential borrowers, terms will not be made that cannot be feasibly met. A thorough credit analysis will be undertaken prior to negotiating loan terms.
(H) Where the applicant is a government agency requesting a combination loan/grant in accordance with § 39.26(F), the RLF Board shall not consider such applications where the grant-to-loan amount requested is higher than 1:1. In other words, the loan amount in a combination loan/grant application must be 50% or more of the total amount requested.
(Ord. 87-27, passed 6-29-87; Am. Ord. 03-21, passed 9-29-03; Am. Ord. 07-10, passed 11-19-07)