Example 1 to paragraph (a) introductory text. A SEDO who borrows $9,000 of her $10,000 cash investment in Applicant, Inc., must have repaid, from her own funds, at least $500 of the loan's principal by the time Applicant, Inc. applies for certification.
Example 2 to paragraph (a) introductory text. A SEDO who finances $8,000 of a $10,000 investment in Applicant may apply for Applicant's certification at any time.
Example 3 to paragraph (a) introductory text. A SEDO who contributes to the Applicant equipment worth $40,000, which she purchased with $10,000 of her own money and $30,000 of seller financing may apply for Applicant's certification at any time.
Example 4 to paragraph (c). SEDO finances $40,000 of a $50,000 investment, and the firm becomes certified. When the SEDO has repaid half of the loan's principal and associated interest, the creditor forgives the remaining $20,000 debt. The SEDO's investment is now $10,000.
49 C.F.R. §26.70