Resolution No. 32-2017 - Amended Industrial Revolving Fund Plan

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Mixed loan and equity financing for start-ups for final product development, product testing and certification, and market confirmation/development Types of terms provided for its loans, including non-traditional financing methods: 0 Working capital loans will generally mature within 3 years. 0 Equipment loans will generally mature within 10 years 0 Real estate loans will generally mature within 20 years Interest rates will generally be fixed and below market, however, in the case of some start-ups the interest rate may be much higher to account for increased risk Loans will be typically secured by the assets being financed along with personal guarantees. The IRF will leverage private funds of $2 for every $1 of loans that it makes. This will be the average across the IRF's portfolio and may vary from loan to loan. While not only helping to reduce overall unemployment, the IRF loans will also provide better than average wages. As noted previously, most IRF loans will be to manufacturing companies or high tech firms where average wages are much higher than in service and retail jobs. D. FINANCING POLICIES 1. Eligible Lending Area The City of South Bend. Other eligible lending areas may be added in the future with EDA's prior written approval. Loan agreements with IRF borrowers will provide for the IRF's ability to call the loan if the company should leave the then current location requirements of the IRF. 2. Allowable Borrowers Allowable borrowers will be for profit businesses or not -for —profit organizations. Loans will be made for start-ups, business retention, or business expansion. Industrial projects include those engaged in the production of a product. Commercial projects will include retail and wholesale trade business. Service projects will not include businesses involved in public administration. 12