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HomeMy WebLinkAboutAgenda - 04-15-2014 - 8aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 15, 2014 Action Agenda Item No. 8 -a SUBJECT: Report on Orange County's "Small Business Loan Program" DEPARTMENT: Economic Development PUBLIC HEARING: (Y /N) No Manager's Office ATTACHMENT(S): 1. Bylaws of Orange County Small Business Loan Program 2. Operating Policies & Procedures of Orange County Small Business Loan Program, Revised 1/13/12 3. Orange County Economic Development's New Marketing Brochure for Small Business Loan Program 4. Ad Design Proposed for Local Media 1 INFORMATION CONTACT: Clarence Grier, Assistant County Manager & CFO, (919) 245 -2453 Steve Brantley, Economic Development, (919) 245 -2326 PURPOSE: To receive a report on the "Small Business Loan Program ", including details on current balances and activity, and receive information on the Economic Development Office's new marketing efforts to increase awareness and demand for the program by potential small business borrowers in Orange County. BACKGROUND: In 2000 the Small Business Loan Program was created to provide loans for small businesses to help stimulate the creation of jobs for Orange County residents, as well as support successful business development and expansion in Orange County. The intent of this Program is to provide an alternative funding option to small, local companies that have difficulty obtaining traditional bank funding, but which meet the requirements of the Program's loan fund. Orange County's original $150,000 funding commitment to the Program was to cover the loan loss reserve of the original loan pool. After several modifications to the Program structure, the Orange County Board of County Commissioners (BOCC) unanimously approved, on March 13, 2007, the transfer of $75,000 from the Program loan loss reserve account to the Orange County Small Business Loan Company to fund this mission. The BOCC also approved the transfer of an additional $75,000 to the Company so that the full $150,000 originally committed to the Program was available for lending to small businesses in Orange County. On March 10, 2009 the Program's Board of Directors unanimously agreed to issue the first loan in the amount of $50,000. The recipient of this loan was a small start -up service firm offering I commercial janitorial and disaster restoration services. The company is based in Hillsborough, with four primary employees who were Orange County residents. The company also provided part -time employment to area residents according to work load requirements. Since its infusion of cash, the company has been able to secure several large contracts and used the funds to purchase additional equipment On September 18, 2009 the Program's Board of Directors voted to award the remaining $25,000 in funds to a toy start -up company based in Hillsborough. This entrepreneurial company makes a cloth woven indoor /outdoor flying disc and was the designer, importer and marketer of the Pocket Disc. All Pocket Discs are hand -made of 100% cotton. One of the company's goals is to support third world artisans, so the Pocket Disc is imported from Guatemala, based on fair trade practices. The applicant received additional external funding to build its inventory and secure its supply chain, hire additional sales talent, and extend and focus its marketing efforts. The company has three employees at its Orange County location. With these two loan awards, the Program began to support the small, entrepreneurial start -ups of Orange County that meet the Program's loan guidelines, but which are unable to secure more traditional, lower -cost bank financing. Due to the success of the program, the two loan awards utilized all of the County's available $75,000 in available funding. At the March 13, 2007 BOCC meeting, it was requested that the County grant the remaining $75,000 to restore the full $150,000 loan loss that was originally committed by the County. However, during 2008 -2009 budget cycle, because the Program had not yet utilized its first $75,000, the remaining $75,000 was not included as a budget request. In 2010 a total of $200,000 was redirected from the Orange County /Chapel Hill Visitors Bureau's fund balance and shifted to the Small Business Loan Program. This enabled the Program to fund new loans following a long period of inactivity. At present, the Orange County Small Business Loan Program has issued eight (8) loans to eight (8) local companies, totaling $333,000. Two applications are currently under consideration. Two other applications were submitted and processed, but those applicants later withdrew their applications. All outstanding loans are current under their repayment terms, with zero collection problems. Companies that have utili; Accidental Baker Orange County Gymnastics Isis Information Technology Mystery Brewing Company The Depot Phd Productions, LLC Santosha /ServiceMaster Skram Furniture Company :ed the Loan Program: (bakery in Hillsborough) (gymnastics gym in Hillsborough) (I.T. service) (brewery in Hillsborough) (general store and music in Hillsborough) (maker of the Pocket Disc toy) (commercial janitorial service) (custom furniture; loan was repaid) Current Status: Balance in SunTrust Checking Account $160,457.69 Article 46 Quarter Cent Sales Tax Allocation $200,000.00 Total Fund Available $ 360,457.69 t New Marketing Ads & Brochures: New marketing collateral pieces have been developed in -house at Orange County Economic Development and will soon be placed with local media (WCHL1360, Chapel Hill News, News of Orange, etc.) to promote greater awareness and demand for the loan program. Board of Director & Loan Approvers: Jim Evans, President Brad Curelop, Vice President Sherry Gray, Asst. Sec /Treasurer Tom Proctor Earl McKee Clarence Grier Steve Brantley Tom Underwood Bank Director (Harington Bank in Chapel Hill) Bank Director (BB &T Bank in Chapel Hill) Small Business (Yesterday & Today Frame Shop) Small Business (The Vacuum Cleaner Hospital) BOCC Representative Orange County Representative Orange County Representative Economic Development Advisory Board Rep. FINANCIAL IMPACT: There are no financial impacts directly associated with this report (available funds were previously allocated as shown above in "current status "). RECOMMENDATION(S): The Manager recommends that the Board receive the report. M Attachment 1 BYLAWS OF ORANGE COUNTY SMALL BUSINESS LOAN PROGRAM COMPANY ARTICLE I PURPOSE Orange County Small Business Loan Program Company is organized for the following purposes: (a) To assist Orange County, North Carolina (the "County "), in carrying out the County's governmental functions through serving as a conduit entity to make and facilitate loans to small businesses in the County, as part of a small business loan program approved and initiated by the County, all in order to promote the economic development and general welfare of the County and its citizens; (b) To enter into agreements with the County, financial institutions and other relevant parties, to fulfill its intended functions in the small business loan program; (c) To lessen the burdens of government, and provide aid and assistance to the County in carrying out its essential governmental functions; and (d) To carry out such related functions as may be necessary or convenient to serving the primary purposes described above. Notwithstanding any other provision of the Articles or these Bylaws, the purposes for which the Company is organized are exclusively charitable, scientific, literary, and educational within the meaning of Section 501(c)(3) of the Internal Revenue Code or 1986, as amended, or the corresponding provision of any future United States internal revenue law. The Company shall not carry on any activities not permitted to be carried on (1) by an organization exempt from federal income tax under such Section 501(c)(3) or future corresponding provision of law, or (2) by an organization contributions to which are deductible under Section 170(c)(2) of the Internal Revenue Code or 1986, as amended, or the corresponding provision of any future United States internal revenue law. The Company shall have all corporate power and authority necessary and convenient to carry on any lawful activity calculated, directly or indirectly, to promote the Company's interests and purposes. Attachment 1 No substantial part of the Company's activities shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the Company shall not participate in or intervene in (including the publishing and distributions of statements) any political campaign on behalf of or in opposition to any candidate for public office. No part of the Company's net earnings shall inure to the benefit of, or be distributable to, its members, Directors, officers, or other private persons, except that the Company shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the Company's purposes. ARTICLE II MEMBERS The Company shall have no members. ARTICLE III BOARD OF DIRECTORS 3.01 General Powers. The Company's business and affairs shall be managed by a Board of Directors (the "Board ") consisting of eight persons. 3.02 Composition. The composition of the Board of Directors shall be as follows: (a) One member of the Orange County Board of Commissioners, as designated by that Board from time to time; (b) One member of the advisory board to the Orange County Economic Development department, as designated by that advisory board from time to time; (c) The Director of Orange County Economic Development; (d) The Orange County Financial Services Director; [The Directors described in (a), (b), (c) and (d) above are referred to in these Bylaws as the "County Directors "] (e) Two employees of financial institutions (the "Bank Directors "); and (f) Two small business owners (the "Small Business Directors "). u Attachment 1 All persons serving as County Directors shall be deemed to be serving as Company Directors as a part of that individual's duties of office, and shall not be considered to be serving in a separate office. A person serving as a Director in such capacity shall immediately cease to be a Company Director upon such individual's cessation of service in the referenced capacity, whether or not such member's successor has been appointed and qualified for office. Each appointing authority for the Directors described in (a) and (b) above shall communicate any designation of a Director to the Secretary in any such manner as may reasonably acceptable to the Secretary. 3.03. Term of Office and Election of Bank Directors and Small Business Directors. (a) The initial Bank Directors and Small Business Directors, and their initial terms of office, shall be as follows: Name and Address Position Expiration of Term Bradley Curelop Bank Director June 30, 2009 Glynn Folk Small Business Director June 30, 2009 Ink Spot Copy Shop Carrboro Jim Evans Bank Director June 30, 2010 Harrington Bank Sherry Gray Small Business Director June 30, 2010 Yesterday and Today Frame Shop Hillsborough (b) Each subsequent Bank Director and Small Business Director shall serve for a term established by the Board but not exceeding two years, in order to provide for an orderly staggering of terms among members of the Board. In any event, however, the term of each Director shall continue until such Director's successor has been duly appointed and qualified for office. Directors may serve an unlimited number of terms (c) Each year, not earlier than May 1 and not later than June 13, beginning in the year 2009, all Directors shall meet to elect one Bank Director and one Small Business Director to take office on the following July 1. Such election may take place at any meeting of the Board, provided that either (i) notice of the meeting has indicated the election of Directors as among the purposes of the meeting, or (ii) all Directors then serving in office are in attendance at the meeting. (d) In electing Directors, the Board will endeavor to provide for geographic diversity among Bank Directors, and will endeavor to provide for at least one Small Business Director to have been in business for at least three years. The guidelines in this 7 Attachment 1 paragraph, however, are advisory only, and shall not be deemed to create rights in any Director or any other person. 3.04. Resi ng ation. Any Director may, by written notice to the Secretary, resign at any time. 3.05. Removal. (a) A County Director may be removed only by such Director's appointing authority. (b) A Bank Director or Small Business Director may be removed from office, without cause, by the vote of not less than four Directors, provided that either (i) notice of the meeting has indicated the possible removal of a Director as among the purposes of the meeting, or (ii) all Directors then serving in office are in attendance at the meeting. 3.06. Filling Vacancies. (a) Any vacancy of a County Director may be filled only by the proper appointing authority for such Director. (b) The Board may fill vacancies among the Bank Directors or Small Business Directors at any meeting of the Directors, provided that (i) notice of the meeting has indicated the possible election of a Director as among the purposes of the meeting, or (ii) all Directors then serving in office are in attendance at the meeting. Any Director so elected to fill a vacancy shall serve until the next election of Directors and until such Director's successor is elected and qualified. 3.07. Compensation._ No officer or Director of the Company shall receive any compensation for service to the Company in any capacity, except that County Directors and other County officers and employees may perform services to the Company as part of their respective positions with the County. Directors and officers may, however, receive appropriate reimbursement for expenditures made on behalf of the Company and approved by the Board, and in addition Directors and officers may receive meals and services in connection with Board or committee meetings. ARTICLE IV COMMITTEES 4.01 Loan Committee. The Board shall, from time to time as may be convenient for the Company's purposes meet as a Loan Committee of the whole for the purposes of considering applications for loans through the Small Business Loan Program for which the Company has been formed, and for related purposes. 4.02 Other Committees. The Board, upon authorization by the affirmative vote of at least five Directors (including at least two County Directors), may from time to time establish additional committees and appoint committee members, for such purposes not inconsistent with law (including N.C.G.S 55A -8 -25) as the Board may determine from Attachment 1 time to time to be in furtherance of the Company's purposes. Committees may include persons other than Directors, but each committee must include at least two Directors. 4.03. Committee Meetings and Other Procedures. The procedures for the calling of meetings and conduct of other business by committees shall be in accordance with the provisions set out in these Bylaws as applicable to the Board as a whole. ARTICLE V MEETINGS OF DIRECTORS 5.01. Regular Annual Meeting. The Board shall meet at least annually for the purpose of electing officers, passing upon reports of the previous year and transacting such other business as may come before the meeting. The County Directors, by notice provided to all Directors as provided for in Section 5.06, shall establish the date, time and place of such annual meeting. If the County Directors make no alternate provisions, the Board shall meet at 9:00 a.m. on the first Monday of May in each year, at the Company's principal office. The Secretary Treasurer shall give notice of the regular annual meeting as provided for in Section 5.06. 5.02. Special Meetings. Special meetings of the Board may be called by the President or by any two Directors, and it shall thereupon be the duty of the Secretary - Treasurer to cause notice of such meeting to be given as provided in Section 5.06. The President or the Directors calling the meeting shall fix the time and place for the holding of the meeting. 5.03 Informal Action. Action taken by the Directors without a meeting is nevertheless Board action if written approval of the action in question is signed by all of the Directors and filed with the Company's official minutes. 5.04. Quorum. Five Directors, including at least two County Directors, shall constitute a quorum; provided, however, that if less than such number of Directors is present at any duly called meeting, a majority of the Directors present may adjourn the meeting from time to time; and provided further that the Secretary- Treasurer shall notify any absent Directors of the time and place of such adjourned meeting. Any one or more Directors may participate in a meeting of the Board by means of a conference telephone or similar Communications device which allows all persons participating in the meeting to hear each other and such participation in a meeting shall be deemed present in person at such meeting. 5.05. Manner of Acting. The act of a majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board, except to the extent these Bylaws or any applicable provision of law establishes a different requirement for corporate action. 9 Attachment 1 5.06. Notice of Board Meeting. Written notice of the time and place of any regular or special Board meeting, unless waived in writing, shall be delivered to each Director not less than five days prior to the meeting date. Notice of any regular or special Board meeting may be communicated in person; by electronic means; or by mail or private carrier. Notice shall be deemed given when delivered in person, sent by electronic means the receipt of which is confirmed by telephone, facsimile transmission, or e -mail, or, if mailed, three days after the date of such notice, with postage prepaid, is deposited in the United States mail addressed to the Director at such address as appears on the Company's records. 5.07 Waiver of Notice, Presumption of Assent. Any Director may waive in writing any notice of a meeting required to be given by these Bylaws, and may make such waiver either before or after such meeting. The waiver must be in writing, signed by the Director entitled to the notice, and delivered to the Company's Secretary- Treasurer for inclusion in the minutes or filing with the corporate records. A Director's attendance at any meeting shall constitute such Director's waiver of notice of such meeting, unless the Director at the beginning of the meeting, or promptly upon arrival, objects to holding the meeting or to transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting. ARTICLE VI OFFICERS 6.01. Designation. The officers of the Company shall be a President Vice President, Secretary- Treasurer, Assistant Secretary- Treasurer and such other officers as the Board may determine from time to time to perform such duties as may be designated by the Board. 6.02. Election and Term of Office. The Board shall elect the officers annually at its regular annual meeting provided for in Section 5.01. Each officer shall hold office until the next regular annual meeting of the Board and until such officer's successor shall have been elected. Except as otherwise provided in these Bylaws, the Board shall fill any vacancy in any office for the unexpired portion of the term. The President and the Vice President shall be members of the Board, but none of the other officers need be members of the Board. No one person may serve in more than one of the offices enumerated in these Bylaws. 6.03. Removal of Officers and Agents. _ Any officer or agent elected or appointed by the Board may be removed by the Board, with or without cause, whenever in the Board's judgment the Company's best interests will be served thereby. 10 Attachment 1 6.04. The President. The President shall (a) be the Company's principal executive officer, shall in general supervise and control all of the Company's business and affairs, and unless otherwise determined by the Directors, shall preside at all Board meetings; (b) sign any deeds, mortgages, deeds of trust, notes, bonds, leases, contracts or other instruments or agreements authorized by the Board to be executed, except in cases in which the signing and execution thereof shall be expressly delegated by the Board to some other officers or agent of the Company, or shall be required by law to be otherwise signed or executed; and (c) in general perform all duties incident to the office of the President and such other duties as the Board may assign from time to time. 6.05. Vice President. In the absence of the President or upon the President's inability or refusal to act, the Vice President shall perform the duties of the President and when so acting shall have all the powers of and be subject to all the restrictions applicable to the President. The Vice President shall also perform such other duties as the Board may assign from, time to time. 6.06 Secretary- Treasurer. The Secretary- Treasurer shall (a) keep the minutes of the meetings of the Board and any committees in one or more books provided for that purpose; (b) see that all notices are duly given in accordance with these Bylaws or as required bylaw; (c) be custodian of the Company's corporate records and of the Company's seal, and affix the Company's seal to documents, the execution of which on behalf of the Company under its seal is duly authorized in accordance with the provisions of these Bylaws; (d) keep a register of the names and post office addresses of all Directors; (e) have general charge of the Company's books and records; (f) keep on file at all times a complete copy of the Company's Articles of Incorporation and Bylaws containing all amendments thereto (which copy shall always be open to the inspection of any Director), and at the Company's expense, forward a copy of the Bylaws and of all amendments thereto to each Director; (g) unless otherwise provided by the Board, have charge and custody of and be responsible for all funds and securities of the Company; 11 Attachment 1 (h) unless otherwise provided by the Board, be responsible for the receipt of and issuance of receipts for all moneys due and payable to the Company and for the deposit of all such moneys. In the name of the Company in such bank or banks, trust companies or other depositories, as shall be selected in accordance with the provisions of these Bylaws; and (i) in general, perform all the duties incident to the offices of Secretary and Treasurer, and such other duties as the Board may assign from time to time. 6.07. Assistant Secretary- Treasurer. In the absence of the Secretary- Treasurer or upon such officer's inability or refusal to act, the Assistant Secretary- Treasurer shall perform the duties of the Secretary - Treasurer and when so acting, shall have all the powers of and be subject to all the restrictions applicable to the Secretary- Treasurer. 6.08. Bonds of Officers. The Board in its discretion may require any officer, agent or employee of the Company to give bond in such amount and with such surety as the Board shall determine. ARTICLE VII FINANCIAL TRANSACTIONS 7.01. Authorization. Except as otherwise provided in these Bylaws, the Board may authorize any officer or officers, agent or agents, in addition to the officers so authorized by these Bylaws, to enter into any contract or execute and deliver any instrument in the name and on behalf of the Company, and such authority may be general or confirmed to specific instances. 7.02. Checks, Drafts, Etc. All checks, drafts or other orders for payment of money, and all notes, bonds or other evidences of indebtedness issued in the name of the Company shall be signed by such officer or officers, agent or agents, employee or employees of the Company and in such manner as shall from time to time be determined by resolution of the Board. In the absence of such determination by the Board, such instruments shall be signed by the Secretary Treasurer and countersigned by the Company's President or Vice President. 7.03. Deposits. All Company funds shall be deposited from time to time to the Company's credit in such bank or banks or other depositories as the Board may select. 7.04. Gifts. The Board may accept on behalf of the Company any contribution, gift, bequest or devise for the general purposes or any special purpose of the Company. 12 Attachment 1 ARTICLE VIII INDEMNITY OF DIRECTORS AND OFFICERS The private property of the Directors and officers shall be exempt from execution or other liability for any debts of the Company, and no Director or officer shall be personally liable or responsible for any debts or liabilities of the Company. The provisions of N.C.G.S. Chapter 55A, Article 8, Part S, or any successor provision, shall fully apply without restriction or limitation as to indemnification of and advancing litigation expenses to Directors, officers, employees or agents of the Company. All officers and Directors shall be deemed to have relied on this provision. To the extent provided in N.C.G.S. Section 55A -8 -60, except as limited by N.C.G.S. Section 55A -2 -02, no Director, officer, employee or agent of the corporation shall be personally liable for money damages as a result of any action for breach of such person's duty as a Director, officer, employee or agent of the corporation, whether by or in the right of the corporation or otherwise. No amendment or repeal of this article, nor the adoption of any other amendment to these Articles or these Bylaws inconsistent with this provision, shall eliminate or reduce the protection granted herein with respect to any matter that occurred prior to such amendment, repeal or adoption. ARTICLE IX AMENDMENTS TO BYLAWS 9.01. In General. These Bylaws may be altered, amended or repealed and new Bylaws may be adopted by the affirmative vote of two - thirds of the Directors present at any regular or special meeting, provided a quorum, as provided in these Bylaws, be present and provided the notice of such meeting shall have contained a copy of the proposed alteration, amendment or repeal, or such requirement shall have been duly waived by all Directors. 9.02. County Consent Required. Notwithstanding the provisions of Section 9.01, no provision of these Bylaws shall be changed in any way, and no new provisions shall be added to these Bylaws, except with the unanimous approval of all County Directors. 13 Attachment 1 ARTICLE X OFFICES 10.01. Principal Office. The Company's principal office shall be located at such place as the Board may fix from time to time. The street address of the corporation's initial principal office shall be Orange County Economic Development Department, 131 West Margaret Lane, Hillsborough, North Carolina 27278. The Company's mailing address is Orange County Small Business Loan Program Company, c/o Orange County Economic Development Department, Post Office Box 8181, Hillsborough, North Carolina 27278 10.02. Registered Office. The registered office of the Company required by law to be maintained in the State of North Carolina may be, but need not be, identical with the principal office. The street address of the corporation's initial registered office shall be Post Office Drawer 1529, Hillsborough, NC 27278. 10.03. Other Offices. The Company may have offices at such other places within the State of North Carolina as the Board may designate from time to time. ARTICLE XI MISCELLANEOUS 11.01 Rules and Regulations. The Board shall have power to make and adopt such rules and regulations not inconsistent with law, the Articles of Incorporation, or these Bylaws, as it may deem advisable for the management of the Company's business and affairs. 11.02. Seal. The Board shall provide a corporate seal, which shall be in the form of a circle and shall have inscribed thereon the name of the Company and the word "SEAL" or "CORPORATE SEAL ". 11.03. Fiscal Year. The Company's fiscal year shall be each period ending June 30. 11.04. Books and Records. The Company shall keep correct and complete books and records of account and minutes of the proceedings of its Board and committees, and shall keep at its registered or principal office a record giving the names and addresses of the Directors. 14 Attachment 2 ORANGE COUNTY SMALL BUSINESS LOAN PROGRAM Operating Policies and Procedures Revised July 1998 Revised March 21, 2000 Revised May 25, 2011 Revised January 13, 2012 15 Attachment 2 ORANGE COUNTY SMALL BUSINESS LOAN PROGRAM PURPOSE The purpose of the Orange County Small Business Loan Program (Program) is to stimulate the creation of good jobs for Orange County citizens as well as to stimulate successful business development and expansion in Orange County (County). The program will attempt to assist businesses that have limited access to financing through conventional means or other government guaranteed sponsored programs. Businesses receiving funding through this program are strongly encouraged to be good corporate citizens as defined in Orange County's Economic Development Strategic Plan. Businesses are also encouraged to employ Orange County citizens. LOAN PROGRAM ADMINISTRATION The Orange County Small Business Loan Program Company (Company) and Orange County (County) staff may be utilized to underwrite and service these loans, to include billing, generating administrative reports, and collection of delinquent accounts. PROPOSED STRUCTURE The Company is a non - profit corporation formed to make and facilitate loans to small businesses under the program described here. The Program is governed by an eight member Board of Directors, acting under the Company's Bylaws. This Program is fully funded by Orange County at the discretion of the Orange County Board of County Commissioners. This proposed structure may be modified from time to time based upon the review and advice of counsel. LOAN COMMITTEE The Board of Directors of the Company will serve as a committee of the whole and as such will serve as the Loan Committee. The Loan Committee Chair shall generally monitor the duties of the Loan Program administration; make sure loan proposal packages are properly prepared prior to their presentations at Loan Committee meetings; and oversee the preparation of commitment letters to approved borrowers. Such commitment letters will be signed by the Chair. The Loan Committee will have the following responsibilities: 1. Find creative ways to utilize loanable funds to stimulate successful small business development and job creation. 2. Meet monthly to review loan applications and determine which requests will be approved and under what terms and conditions. 3. Periodically review status of existing loans and recommend appropriate corrective action or special monitoring where needed. 4. Approve modifications to loan agreements. 5. Evaluate underwriting requirements and make appropriate adjustments as needed to accomplish the objectives of the program. 16 Attachment 2 6. Provide direction regarding collection (e.g. legal action, foreclosure, acceleration of amortization, determination of default/charge -off, etc.) 7. Conduct annual review of loan documents and credit files. FUNDING The County has provided initial funding for the Program, with the understanding that the Program will eventually develop into a self- sustaining revolving loan fund. COMMITMENT PERIOD The County will support the Program until demand for the Program is no longer present, or until it is no longer financially feasible. ELIGIBILITY • Businesses must be located within Orange County in areas zoned appropriately for their use. • Applicant's length of residence in Orange County may be considered in assessing the applicant's degree of commitment to the community. Preference will be given to Orange County residents during the loan review process. • Applicants must be for - profit business entities whose gross revenues do not exceed $3 million /year. • Applicants must be willing to contract for management and technical assistance if determined to be necessary by the Loan Committee. • Applicants must have an equity contribution in the business of at least 10 %. • All owners of the business may be required to execute an Unconditional Guaranty Agreement for the full amount of the loan. Additional Guarantors may be required by the Loan Committee. • Applicants with any natural person owner who has pending criminal charges or who has been convicted of a crime and is still serving an active prison sentence, is on probation or is on parole is not eligible for an Orange County Small Business Loan. ELIGIBLE USES OF LOAN PROCEEDS 1. Working capital or operational funds. 2. Purchase of equipment, commercial -use vehicles, or machinery. 3. Improvement of owner - occupied commercial property. (Owner must occupy 50% or more of total space.) 4. Start -up funding. 5. Expansion of business services or products. 6. Acquisition of owner - occupied commercial real estate (7- year maturation). 7. Tenant up fit and lease -hold improvements. 8. A small business loan request that is to be used in conjunction with other financing will be considered on a case -by -case basis. 9. Work force expansion. LOAN PROCEEDS SHALL NOT BE USED FORTH E FOLLOWING 1. Refinancing of existing bank debt or investor loans. The Loan Committee may grant an exception of up to 50% of loan value. 17 Attachment 2 2. Purchase of equipment or improvement of real estate which are used or to be used for personal use. 3. Political activities. 4. Owner salary and dividend payments beyond an agreed amount. 5. Speculative ventures (Examples: drilling for gas or oil, commodity futures). 6. Lending or investment. 7. Real property held for sale or investment. 8. Pyramid sales - distribution plan businesses. 9. Floor plan financing (defined as a revolving line of credit that allows the borrower to obtain financing for retail goods. These loans are made against a specific piece of collateral (i.e. an auto, RV, manufactured home, etc.)). 10. Foreign controlled businesses. 11. Non - profit institutions. 12. Private membership clubs. COMPLIANCE WITH APPLICABLE REGULATIONS In all cases, loans made from this program must be consistent and in accordance with the following: 1. All state and local regulations governing the applicant's business. 2. Policies established by the Loan Committee for each particular applicant. 3. Policies established by the Board of County Commissioners dealing with this loan program. AMOUNT OF LOANS Maximum: $50,000. Minimum: $5,000. Should market conditions change, or in the event of an applicant with extraordinary conditions, a loan in amount outside of the maximum or minimum may be considered by the Loan Committee. All loans are subject to availability of loan funds. LOAN TERM Maximum Term - 5 years (except 7 years for the purchase or improvement of real estate used or to be used wholly for the business purpose of the applicant.) Should market conditions change, or in the event of an applicant with extraordinary conditions, a loan term in excess of the maximum term may be considered by the Loan Committee. INTEREST RATE All loans will be charged finance charges based on a variable interest rate. The variable interest rate (the "interest rate ") will be determined by and be based on the length of the maturity of the loan and an increment over the highest Prime Rate ( "Prime ") as published on the first business day of the month in the Money Rate Table in the Eastern Edition of the Wall Street Journal generally as follows: In Attachment 2 Loan Term Interest Rate 0 up to 2 years Prime plus 2 00% 2 up to 3 years Prime plus 2.25% 3 up to 4 years Prime plus 2.50% 4 up to 7 years Prime plus 3.00% The finance charges on the loan will be calculated by multiplying a daily periodic rate (the interest rate/ 365) by the unpaid principal amount of the loan on the last day of the billing cycle times the number of days in the month. The daily periodic rate may vary from month to month due to changes in the interest rate and will be determined in the same manner as the interest rate is determined with the loan maturity date unchanged from that used to calculate the interest rate when the loan is made. The Loan Committee will assign an interest rate using the rate guidelines provided above, to each loan commitment. FEES AND EXPENSES An origination fee, which may be paid from the loan proceeds, will be charged, payable at closing, ranging from 1 % to 1 '/2% but, in no case to exceed limits set by North Carolina Statutes. The minimum origination fee will be $100. The applicant will be responsible for all other expenses related to closing the loan, including, but not limited to, recording fees and legal fees. The applicant will also be responsible for any fees related to any appraisals or reports required by the Loan Committee. LOAN REPAYMENT Loan repayment schedules will be finalized upon loan commitment. All payments shall be due as stipulated in the repayment schedule. A late payment will be assessed at 2% of the payment amount after the loan becomes 15 days overdue. Loans may be prepaid, in whole or in part, at any time without penalty. In the event the loan payment becomes 30 days overdue, procedures for the Collection of Delinquent Loans shall be followed. COLLECTION OF DELINQUENT LOANS If a payment becomes 30 days overdue, the borrower will be contacted. If extenuating circumstances warrant, the loan may be restructured to encourage payment. The Loan Committee will evaluate the loan as a whole, and determine if a restructuring is beneficial to Program. Once a payment is 60 days overdue, a plan to collect the outstanding balances will be developed in conjunction with Orange County's legal department. Individual Collection Plans will be tailored to the outstanding account, but may include one or more of the following activities: When a borrower is 60 days past due, a reminder letter is sent advising of the outstanding loan and of the late payment charged as detailed in the `Loan Repayment' section above; A collection letter is sent when the account is 90 days past due, and may contain additional penalties; Accounts that are 120 days past due may be turned over to a professional 19 Attachment 2 collection agency. LOAN ANALYSIS The Loan Committee shall review and consider a number of items in determining whether a loan should be made. Those items shall include at least the following: 1. Business plan. 2. Current and projected employment (including future need for employees; skill levels and education required; employee compensation, health insurance, and other benefits). 3. Business financial statements. (Past two years plus interim) 4. Tax returns. (Past two years - personal and business) 5. Pro formas (financial statement projections that may include monthly cash flow, profit and loss, and additional statements as required by the Loan Committee) to determine that there will be sufficient cash flow to meet obligations for 2 years. 6. Personal financial statements. 7. Information regarding collateral and a current personal credit report. 8. Other available financing including, but not limited to, whether other financial institutions have agreed to consider traditional debt financing and under what circumstances. 9. Any other information that the Loan Committee determines that it needs. SUGGESTED LOAN GUIDELINES 1. Creditworthiness - Although applicants will be considered with credit ratings showing a history of accounts up to 30 days past due, preference will be given to borrowers with good credit ratings. Applicants with bankruptcy or prior to repossessions listed on their credit report will, in most cases, be considered too great a credit risk for this program. 2. Cash Flow Coverage -The loan program is targeted to applicants with cash flow coverage, prior to loan program debt, of not less than 1.1 to 1 to current maturities of long -term debt. Cash Flow is further defined as net income plus depreciation. 3. Debt to Net Worth- The loan program is targeted to applicants whose total debt does not exceed net worth by 4 to 1. 4. Collateral - Loans shall be secured by appropriate forms of collateral, with recorded first lien positions as appropriate. Acceptable forms of collateral will be based on commonly accepted definitions (fixed assets, inventory, accounts receivable, land, building, equipment, or personal assets). PROCEDURES 1. Applicants will be referred to the Orange County Economic Development department (Department). Department staff will meet with applicants and process applications. Applicants may be referred to the SBTDC for consultation. 2. Completed applications will be submitted to the Loan Committee no later than two weeks prior to its next scheduled meeting. 20 Attachment 2 3. At the scheduled meeting, the Loan Committee will discuss the strengths and weaknesses of complete loan application(s) and decide whether or not to take action on the request, based on the information provided. The Loan Committee may invite the applicant(s) to a meeting in order to provide additional information. 4. The applicant will be informed in writing of the Loan Committee's decision to deny, grant, grant with condition, or seek more information. Should the Loan Committee deny the applicant's application, the Loan Committee will not thereafter consider any applications from that applicant for at least six months. 5. At its discretion, the Loan Committee may impose any additional terms and conditions necessary to improve the loan or to secure the loan. The Loan Committee may require an itemized budget detailing the proposed use of loan funds. 6. Should the applicant think that the application has been improperly denied, then the applicant may notify, in writing, the Loan Committee. The notice to the Loan Committee shall state why the applicant thinks the loan should be approved. Denial of the application shall then be given further consideration by the Loan Committee. The Loan Committee's decision on the loan is the final decision. 7. The Loan Committee shall provide regular reports to the Board of County Commissioners of loans that it has approved. Any event of default or loan loss shall be reported to the Board of County Commissioners in writing and presented to the Board of County Commissioners at its next regular meeting following the event of default or loan loss. 8. Loan terms and amounts, and documents, including but not limited to financial statements, business plans, customer and supplier lists, description of inventory or assets, contractual obligations and existing liabilities, submitted during the application process shall be treated as confidential information. PORTFOLIO MANAGEMENT GUIDELINES 1. Loans to start -up businesses shall not exceed 25% of the loan pool. 2. The total of loan principal past due 30 days or more shall not for any month exceed 10% of outstanding loan commitments. 3. Funds accumulated from the repayment of approved and issued loans, may be used as a source of funding for new loans. Any exception to the above will result in a moratorium on future loan requests and a review of these loan guidelines by the Loan Committee. j, Attachment 3 . . . . . . . . . . . Small use e Loan Pnogram T h F 1 (0, 85, C A 30 .0 (30U, nMy SrnaH 13usiness Loan Program May b@ Ed'Me to halp I-110ve your business to the next �GvGl with Yuhding for equipmeni, buRdInig renova- tions, working ceDpKad or to sjE-np y hjp yo, turn your idea into a business. .......... -nail BLIsiness Loan Program is administered N Thn Si bV Orange County Economic Development 22 Heed ca p) to grow your b ' s The Orange County Small Business Loan Program is a revolving loan fund de- signed to foster successful local business development and expansion. The pro- gram is targeted toward businesses that may have limited access to conventional financing and was developed by Orange County to promote the economic devel- opment within the county. Process Applicant Eligibility Application packages can be obtained from the ® Applicants must be for - profit business Economic Development office in Hillsborough. entities whose gross revenues do not Completed applications will be submitted to this exceed $3 million /year office as well. Applicants may be referred to the ® All businesses must be located within Small Business and Technology Development Orange County in areas zoned appro- Center (SBTDC) for assistance in preparing a priately for their use (owner's length of residence in Orange County may be competitive submission. Applications are then re- considered in assessment). viewed by a Loan Committee, comprised of com- ♦ Applicants must have an equity contri- munity volunteers including bankers, small busi- bution of at least 10% in the business. ness owners, and county staff. The Loan Commit- ® All owners of the business may be re- tee will make the final decision on all loans and quired to execute an Unconditional terms. Guaranty for the full amount of the loan. See Policies and Procedures for additional information o Applicants with pending criminal charges or who have been convicted of a crime and still serving an active Eligible use of Proceeds prison sentence, are on probation or parole are not eligible for an Orange ® Working capital or operational funds County Small Business Loan. ® Purchase of equipment or commercial -use vehi- cles ® Improvement of owner- occupied commercial Terms andCondition's* property (owner must occupy 50% or more of total space) ;Maximum loan Up to $50,000. -., ; __ o Start -up funding iMaximum term 5!years Expansion of business services or products 7.:years (Purchase /improvement of o Acquisition of owner - occupied commercial real real estate) estate o Tenant up fit and lease -hold improvements Tees Ongmation fee ofi'1% to` .1 5% Ad d tional!fees may be applicable Workforce expansion o A small business loan request that is to be used Interest Typically prime rate plus 2% t6_3% in conjunction with other financing will be con- sidered on a case -by -case basis. *Final loan, rates "and terms are set by, the;Loarr Committee on a case by =case basrs proceeds Loan M v 0 0 0 0 0 0 0 0 r•. Refinancing of existing bank debt or investor loans Purchase of equipment or improvement of real estate whicn are usea or to be used for personal use Political activities Owner salary and dividend payments beyond an agreed amount Speculative ventures (drilling-for gas or oil, commodity futures) Lending or investment Real property held for sale or investment Pyramid sales - distribution plan business Floor plan financing (defined as a revolving line of credit that allows the borrower to obtain financing for retail goods. These loans are made against a specific piece of collateral (i.e. an auto, RV, manufac- tured home, etc.). Foreign Controlled businesses Non- profit institutions Private membership clubs 0 All forms are available online: 0 http: / /growinorangenc.com /growing- business /small- business -loan -fund/ "Recipients: M`sTEKY* i Orange Gymnastics NSC simple -Fah 2nYwhett ram Ser*ftsterby Santosba furniture company 24 www.Growl nOrange. NC The Orange County Small Business Loan Program (Program) is a revolving loan fund program designed to stimulate the creation of good jobs for Orange County citi- zens, as well as to stimulate successful business develop- ment and expansion. The program will attempt to assist businesses that have limited access to financing through conventional means or other government guaranteed sponsored programs. Businesses receiving funding through this program are strongly encouraged to be good corporate citizens and to employ Orange County citizens. The Orange County Small Business Loan Program Com- pany was incorporated in September 1999 to make and facilitate loans to small businesses in Orange County. The loan program has been approved and initiated by the County, in order to promote the economic development and general welfare of the county and its citizens. Additional information and applications are available from the Orange County Economic Development Department (contact information located at the bottom of this docu- ment). All applications will be reviewed for eligibility and completeness. Completed applications will be submitted to the Board of Directors for the Orange County Small Business Loan Program Company (who acts as the Loan Committee). Applicants will be informed in writing of the Loan Committee's decision. Eligibility Applicants must be for - profit business entities whose gross revenues do not exceed $3 million per year. All businesses must be located within Orange County in areas zoned appropriately for their use. Owner's length of residence in Orange County may be considered in assess- ment. Applicants must have an equity contribution of at least 10% Owners with an ownership position of 10% or more of the business will be required to execute an Personal Guaranty Agreement for the full amount of the loan. Additional guar- antors may be required. Applicants must be willing to contract for management and technical assistance if determined to be necessary by the Loan Committee. Applicants with pending criminal charges or who have been convicted of a crime and still serving an active prison sentence, are on probation or on parole are not eligible for an Orange County Small Business Loan. Eligible Uses of Loan Proceeds • Working capital or operational funds. • Purchase of equipment, commercial -use vehicles, or ma- chinery. • Improvement of owner - occupied commercial property. (Owner must occupy 50% or more of total space.) • Start -up funding. • Expansion of business services or products. • Acquisition of owner - occupied commercial real estate (7- year maturation). • Tenant up fit and lease -hold improvements. • A small business loan request that is to be used in con- junction with other financing will be considered on a case - by -case basis. • Work force expansion. Loan Proceeds Shall Not Be Used For the Following • Refinancing of existing bank debt or investor loans. The Loan Committee may grant an exception of up to 50% of the loan value. • Purchase of equipment or improvement of real estate which are used or to be used for personal use. • Political activities. • Owner salary and dividend payments beyond an agreed amount. • Speculative ventures (Examples: drilling for gas, or oil, commodity futures). • Lending or investment. • Real property held for sale or investment. • Pyramid sales - distribution plan businesses. • Floor plan financing. • Foreign controlled businesses. • Non - profit institutions. • Private membership clubs. Compliance With Applicable Reaulations In all cases, loans made from this program must be consistent and in accordance with the following: • All state and local regulations governing the applicant's business. • Policies established by the Loan Committee for each par- ticular applicant. Orange County Small Business Loan Program PO Box 1177 Hillsborough, NC 27278 919 - 245 -2325 yscarlett @orangecountync.gov Amount of Loans Maximum: $50,000 Minimum: $5,000 Should market conditions change, or in the event of an appli- cant with extraordinary conditions, a loan in amount outside of the maximum or minimum may be considered. All loans are subject to availability of loan funds. Loan Terra Maximum term -5 years (except 7 years for the purchase or improvement of real estate used or to be used wholly for the business purpose of the applicant.) Interest Rates All loans will be charged finance charges based on a vari- able interest rate. The interest rate will be based on the length of the loan term, as follows: Up to 2 years Prime plus 2.00% 2 up to 3 years Prime plus 2.25% 3 up to 4 years Prime plus 2.50% 4 up to 7 years Prime plus 3.00% The periodic rate may vary from month to month due to changes in the interest rate. The Loan Committee will assign an interest rate using the rate guidelines provided above. Fees and Expenses An origination fee, payable at closing from loan proceeds, will be charged at a rate of 1% to 1% %. The minimum origination fee will be $100. Applicant will be responsible for all other expenses related to closing the loan. The applicant will also be responsible for any fees related to any appraisals or reports required by the Program's Loan Committee. Loan Repayment Loan repayment schedules will be finalized upon loan commitment. A late payment will be assessed at 2% of the payment amount after 15 days overdue. Loans may be prepaid, in whole or in part, at any time without penalty. In the event the loan payment becomes 30 days overdue, collection procedures will begin. Repayment terms may be modified by the Loan Committee. Application Procedures Requests for application to the OCSBLP using the contact information at the bottom of this document may be initiat- ed by the principals of a company or by the company's professional advisors (attorney, bankers, and accountant). Orange County Economic Development staff will meet with the applicants to ensure completeness of the applica- tion and process applications. Applicants may be referred to the SBTDC for consultation. 26 Completed applications will be submitted to Loan Commit- tee no later than two weeks prior to its next scheduled meeting. At the meeting, the Loan Committee will decide whether or not to take action on the request, based on the infor- mation provided. The applicant will be informed in writing of the Loan Committee's decision to deny, grant, grant with condition, or seek more information. Should the Loan Committee deny the applicant's application, the Loan Committee will not consider any applications from that applicant for at least six months. At its discretion, the Loan Committee may impose any additional terms and conditions necessary to improve the loan or to secure the loan. The Loan Committee may re- quire an itemized budget detailing the proposed use of loan funds. Should the applicant think that the application has been improperly denied, then the applicant may notify, in writ- ing, the Loan Committee. The notice to the Loan Commit- tee shall state why they applicant thinks the loan should be approved. Denial of the application shall then be given further consideration by the Loan Committee. The Loan Committee decision on the loan is the final decision. The Loan Committee shall provide regular reports to the Board of County Commissioners of loans that have been approved. Any event of default or loan loss shall be re- ported to the Board of County Commissioners in writing and presented to the Board of County Commissioners at its next regular meeting following the event of default or loan loss. NOTE: Loan terms and amounts, and documents, includ- ing but not limited to financial statements, business plans, customer and supplier lists, description of inventory or assets, contractual obligations and existing liabilities, ,submitted during the application process shall be treated as confidential information. Orange County Small Business Loan Program PO Box 1177 Hillsborough, NC 27278 919 - 245 -2325 yscarlett @orangecountync.gov 27 Cnnfidential orange County Small Business Loan Application Loan Request Amount of Loan Requested What will you use the loan for (include cost breakdown)? $ What collateral do you have available to secure this loan? Business Information Legal Name of Business DBA Name (if different from Legal Name) Street Address (physical address, not a PO) City /County State Zip Mailing Address (if different from Street address) City /County State Zip Annual Sales Federal Tax ID Number Business Phone Number Date Established Current Owner Since Number of Employees Business is: Terms of Lease Business Location ❑ Owned Years ❑ Mall ❑ Shopping Strip ❑ Office Building ❑ Commercial ❑ Leased Months ❑ Home ❑ Other (identify) Type of Organization Industry Category ❑ Sole Proprietorship ❑ C Corporation ❑ S Corporation ❑ Manufacturing ❑ Retail ❑ Agricultural ❑ General Partnership ❑ LLC ❑ Other ❑ Wholesale ❑ Service ❑ Other Briefly describe the product sold or service offered by our business: Who are your major customers (at least two names): Page 1 of 4 W Confidential Principal/Owner/Guarantor Information Please complete for each principal/owner/guarantor with more than 10% ownership (Attach a separate sheet if necessary) *Alimony, child support or separate maintenance income need not be revealed if you do not wish it considered as a basis for repaying this obligation Name(s): ❑ Mr. ❑ Ms. ❑Joint Home Address % of Ownership in Business: Gross Income: *$ Monthly Housing Payments: $ Personal Net Worth Excluding Business Value: $ Name(s): ❑ Mr. ❑ Ms. ❑Joint Home Address % of Ownership in Business: Gross Income: *$ Monthly Housing Payments: $ Personal Net Worth Excluding Business Value: $ Name(s): ❑ Mr. ❑ Ms. ❑Joint Home Address % of Ownership in Business: Gross Income: *$ Monthly Housing Payments: $ Personal Net Worth Excluding Business Value: $ Page 2 of 4 29 Confidential Business Financial Information Who is your primary bank? Insurance Provider? Accounting firm? Attorney? Approximate balance in your business checking account? Payment Frequency Interest Rate Maturity Date Approximate balance in other checking accounts Approximate balance in your savings account Please list all business debt and corresponding payment information: Creditor Account Balance Payment Amount Payment Frequency Interest Rate Maturity Date I Collateral Is the business or any principal /owner an endorser, guarantor, or co -maker for obligation(s) not listed above? Is the business or any principal /owner a party to any threatened or pending claim or lawsuit? Are there any delinquent FICA or sales taxes? Has the business or any principal /owner ever declared bankruptcy? :1 Yes ❑ No Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No Please attach ex lanation for any questions answered "Yes" The signer(s) certifies that he /she is authorized to execute the application for the business named above, and that the information in this application and any other documents submitted in connection with the application is complete, true, and correct. The signer(s) authorizes the Orange County Small Business Loan Pool to verify the information and to obtain personal, consumer and /or business credit reports. The signer(s) further agrees to provide additional information upon request and to notify the OCSBLP promptly of any material change in the information provided in tlus application Business Name Date Additional Guarantor Signature Date Page 3 of 4 By Title Additional Guarantor Signature 30 Confidential Date In addition to the completed application, please submit the following information: If your company has been in business for at .least'18 months, please submit: • Personal Financial Statement for any person owning 10% or more of the business. • Business and Personal Tax Returns for the past two years. • Business Financial Statements, including monthly cash flow, current year's profit and loss, current balance sheet, and profit and loss projection for the next two years (monthly for the next year and quarterly for the following year). • Business Plan, including employment data (projected need for employees, skill requirements, compensation and benefits). • Current personal credit report, including credit score. If your company has been in existence less than 18 months, please submit: • Personal Financial Statement for any person owning 10% or more of the business. • Personal Tax Returns for the past two years (business tax return if available). • Business Financial Statements. If currently operating, please submit financial statements, including monthly cash flow, profit and loss, and recent balance sheet for the operational period. If your company is not yet in operation, see financial submittals required in Business Plan, below. • Business Plan, including employment data (projected need for employees, skill requirements, compensation and benefits. If your company has yet to begin operations, or has been operating for less than a year, your business plan must include the employment data (projected need for employees, skill requirements, compensation and benefits), management resumes, sources of start -up capital, and projected financial statements for at least two years. • Current personal credit report, including credit score. if your company has yet to begin operations (or less than one year), please submit: • Personal Financial Statement for any person owning 10% or more of the business. • Personal Tax Returns for the past two years. • Business Plan, including employment data (projected need for employees, skill requirements, compensation and benefits. If your company has yet to begin operations, or has been operating for less than a year, your business plan must include the employment data (projected need for employees, skill requirements, compensation and benefits), management resumes, sources of start -up capital, and projected financial statements for at least two years. • Current personal credit report including credit score. NOTE Loan terms and amounts, and documents, including but not limited to financial statements, business plans, customer and supplier lists, description of inventory or assets, contractual obligations and existing liabilities, submitted during the application process, shall be treated as confidential information. Additional information may be requested by the Loan Committee. Please mail or email completed application to: Orange County Small Business Loan Program P.O. Box 1177 Hillsborough, NC 27278 or yscarlett@orangecountync.gov Page 4 of 4 31 Confidential Personal Financial Statement Orange County Small Business Loan Program As of , 20 Complete this form for: (1) each proprietor, or (2) each limited partner who owns 10% or more interest and each general partner, or (3) each stockholder owning 10% or more of voting stock, or 4 any person or entity providing a guaranty on the loan. Name Business Phone Residence Address Residence Phone City, State, & Zip Code Business Name of Applicant /Borrower ASSETS (Omit Cents) LIABILITIES (Omit Cents) Cash on hand and checking Account $ Accounts Payable $ Savings Accounts $ Notes Payable to Banks and Others $ Certificates of Deposit $ (Describe in Section 2) Retirement Funds (eg. IRAs, 401K) Accounts & Notes Receivable Life Insurance- Cash Surrender Value (Complete Section 8) Securities — Stocks /Bonds /Mutual Funds (Describe in Section 3) Real Estate (Describe in Section 4) Automobile- Present Value $ $ $ $ $ $ $ $ Installment Account (Auto) Mo. Payments $ Installment Account (Other) Mo. Payments $ Loan on Life Insurance Mortgages on Real Estate (Describe in Section 4) Unpaid Taxes (Describe in Section 6) Other Liabilities $ $ $ $ $ Other Personal Property (Describe in Section 5) Other Assets (Describe in Section 5) $ $ (Describe in Section 7) Total Liabilities Net Worth $ $ $ Total Assets $ Total $ Section 1. Source of Income Contin ent Liabilities Salary $ As Endorser or Co -Maker $ Net Investment Income $ Legal Claims & Judge $ Real Estate Income $ Provision for Federal Income Tax $ Other Income (Describe below)* $ Other Special Debt $ Description of Other Income in Section 1. *Alimony or child support payments need not be disclosed in "Other Income" unless it is desired to have such payments counted toward total income. Section 2. Notes Payable (Use attachments if necessary. Each attachment must be identified as a part of this statement and signed). Name and Address of Noteholder(s) Original Current Payment Frequency How Secured or Endorsed Balance Balance Amount (month) etc. 32 Confidential Section 3. Stock and Bonds Number of Shares Name of Securities Cost Market Value Quotation/Exchange Date of Quotation/Exchange Total Value Section 4. Real Estate (List each parcel separately. Use attachment if necessary. Each attachment must be identified as a part of this statement and signed. Property A Property B Property C Type of Property Address Date Purchased Original Cost Present Market Value Name 8� Address of Mortgage Holder Mortgage Account Number Mortgage Balance Amount of Payment per Month/Year Status of Mortgage Section S. Other Personal Property (Describe, and if any is pledged as security, state name and address of lien holder, amount of lien, terms of payment and if delinquent, describe delinquency). Section 6. Unpaid Taxes Describe in detail, as to.type, to whom payable, when due, amount, and to what property, if any, a tax lien attaches). Section 7. Other Liabilities Describe in detail. Section S. Life Insurance field Give face amount and cash surrender value of policies — name of insurance company and beneficiaries. I authorize OCSBLP /Lender to make inquiries as necessary to verify the accuracy of the statements made and to determine my creditworthiness. I certify the above and the statements contained in the attachments are true and accurate as of the statement date(s). These statements are made for the purpose of either obtaining a loan or guaranteeing a loan. I understand FALSE statements may result in forfeiture of benefits and possible prosecution by the U.S. Attorney General (Reference 18 U.S.C. 1001). Signature: Date: Social Security Number: Signature: Date: Social Security Number: Attachment 4 33 Orange County N O R T H _. „_ -R O L 1.-_N A Need capital to start or grow your business? pMgjM The Orange County Small Business Loan Program t.14 may be able to help move your business to the next level funding for with equipment, building renovation, working capital or to simply help you �! _­ ,_ I -- �,; turn your Idea into a business. Applicant Eligibility ♦ Applicants must be for -profit business entities (gross revenues less than $3 million /year) ♦ All businesses must be located within Orange County (zoned appropriately for their use) ♦ Applicants must have an equity contribution of at least 10% in the business. ♦ All owners of the business may be required to execute an Unconditional Guaranty for the full amount of the loan. Please visit our website for additional information: http: / /growinorangenc.com /growing - business /small- business -loan -fund/ Orange County Economic Development 131 W. Margaret Lane, Hillsborough, NC 27278 1 919- 245 -2325 1 www.GrowlnOrange C com I'