Regional Economic Development Group Since 1978. THREE LOAN PROGRAMS Revolving Loan Fund Program...
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Transcript of Regional Economic Development Group Since 1978. THREE LOAN PROGRAMS Revolving Loan Fund Program...
Regional Economic
Development Group
Since 1978
THREE LOAN PROGRAMS
Revolving Loan Fund Program (RLF)
SBA 504 Loan Fund Program (SBA 504)
Intermediary Relending Program (IRP)
PROGRAM SUMMARIES
Program # of Loans Amount
RLF 310 $ 16,293,198
SBA 504 197 $ 56,448,000
IRP 9 $ _ 425,000
TOTAL 516 $ 73,166,198As of June 30, 2006
Active 188 $ 29,594,823As of March 31, 2007
Loan Security Documentation
and
Collection
THE 5 C’s OF CREDIT
Character
Cash Flow
Collateral
Capitalization
Conditions
COLLATERAL
Security given as a pledge for the fulfillment of an obligation.
Adequate to provide reasonable assurance of repayment in the event cash flow does not permit.
Must be perfected to be effective
TYPES OF COLLATERAL
Real Estate
Personal (Chattel)Property
Other (ie. Guarantee)
REAL ESTATE
Mortgage
Spousal Rights
Homestead Exemption
3 day right of recession
Abstract Update or Basket Lien Search
PERSONAL PROPERTY
Security Agreement underlying written pledge or promise for fulfillment or repayment of a loan
UCC Financing Statement serves as public record of the pledge or promise and MUST match security agreement. Abstract or basket lien search UCC lien search
WHERE TO FILE
State where corporation is incorporated Filing
Online ( www.sos.state.ia.us ) Mail Develop standard, then cut & paste – check & recheck
Lien and Tax Search
County where collateral is located
Lien Search
GUARANTEES
Unsecured
Secured
Spousal guaranty
COLLECTIONS
Late Letter (10 days) Warning Letter Notice of Acceleration (Demand Letter) Legal Action
Notice should include:
Specific amount due or in default
Cure Period
Include Notice to Guarantor
Smaller amounts are typically better worked out, larger amounts less probable (deeper hole)
LOAN AGREEMENT PROVISIONS Authorize lender to file and maintain all
necessary financing statements Deficiency of Conditions of Lending Section Late payment and NSF Check fee.
(ie. Minimum $25) Promissory Note, Loan agreement, Security
Agreement and Financing Statements should parallel each other
INNOVATIVE STRATEGIESHIDDEN SECURITY OPPORTUNITIES Vehicles titled and not included under UCC
Home equity or other real estate held
Purchase money security interest in certain assets Disburse funds for project (equipment) Financing statement should include, at a minimum,
make, model & serial number Debtor must take possession within 20 days
Life insurance assignment - death benefit and cash surrender value
Intercreditor agreement
Subordination agreement
INNOVATIVE STRATEGIESHIDDEN SECURITY OPPORTUNITIES
BROCHURES AVAILABLE
Black Hawk Economic Development, Inc.
The Organization
Revolving Loan Fund (RLF) Program
SBA 504 Loan Program
IRP Loan Program
Credit and Finance Factors