Section 1-6 - Terms, Conditions, and Repayment a. In making seed capital loans, the Council shall: - (ii) Submit all complete applications to review professionals for recommendation of funding.
- (iii) Limit the maximum seed loan to any one business to $50,000 (fifty thousand and 00/100 dollars);
- (iv) Reserve the right to require guarantees by the applicant;
- (v) Reserve the right to terminate the loan if the enterprise ceases to operate or move out of state;
- (vi) Require all statutory requirements regarding the loan be met.
b. In applying for seed capital loans, the applicant shall: - (i) Demonstrate a cash match of 3-1 to be invested in the business on or before the loan is closed (at least 2-1 cash needs to be invested prior to the application, this may be in the form of owners capital, friends and family, SBIR or other grants). Loan funds will not qualify as match, the additional match must be in the form of cash capital at closing;
- (ii) Provide sufficient and adequate tangible assets to secure the loan;
- (iii) Agree to repay the seed capital loan anytime within five years on a schedule as follows, if paid in:
year 1, then 120% of the loan
year 2, then 140% of the loan
year 3, then 160% of the loan
year 4, then 180% of the loan
year 5, then 200% (2 times the loan amount);
- (iv) Provide written permission agreeing to allow the Department of Audit and/or an auditor designated by the Board of Directors to examine its books and records, upon request.