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D. Maximum Loan is 25% of Portfolio Assets, or less <br />E. Standard Loan Term <br />1. Maximum equipment terin is 10 years <br />2. Maximum real estate term is 20 years <br />3. Maximum working capital is 3 years; or <br />4. No longer than term of supporting sales contract except for high tech <br />start-ups <br />F Interest Rate <br />—1. Minimum interest rate <br />a. 4% below WSJ prime, but <br />b. Not less than 4% per annurn. <br />2. Higher interest rate based on <br />a. Start-up risk <br />b. Conventional financing at later date <br />c. Ability to afford higher rate <br />G. Principal and/or Interest Deferral <br />1. Not to exceed 2 years and only if cash flow is seen to be temporarily too <br />low <br />,H. Equity and Collateral Requirements <br />1. Project includes at least 10% equity <br />2. Collateral <br />a. Secured only with assets financed, or <br />b. Secured with additional assets <br />3. Personal guarantees <br />a. Required, or <br />b. Waived due to first security position on assets with an estimated <br />liquidation value equal to loan or waived for high tech start-up <br />companies <br />4. Landlord's lien waiver <br />5. Key -person life insurance (if necessary) <br />Verification IRF is Not Substituting for Private Capital <br />-1. Bank turndown letter, or <br />-2. List of banks contacted, funds requested and banks' responses as verified <br />by IRF loan officer, or <br />-3. IRF analysis showing borrower's creditworthiness to be insufficient for <br />bank financing, or <br />4. Any evidence showing credit is not otherwise available <br />46 <br />