For a B&I project to be eligible for a loan guarantee under this part, it must meet the criteria specified in § 5001.102 , be for a borrower eligible to submit an application for the project in accordance with § 5001.126 , and the uses of loan funds include, but are not limited to, the following:
Table 1 to § 5001.105(d) -Capital Equity Requirements Summary
Borrower | Borrower must meet one of the following at the time of the closing of the guaranteed loan: | ||
Percent balance sheet equity: | Borrower investment as percent of total eligible project cost: | Balance sheet equity includes owner contributed capital as percentage of total fixed assets: | |
Existing Business | [GREATER THAN EQUAL TO]10 | [GREATER THAN EQUAL TO]10 | [GREATER THAN EQUAL TO]10 |
Borrowers that are new businesses with sales contract(s) adequate to meet debt service and the term of the sales contract(s) are at least equal to the term of the guaranteed loan. | [GREATER THAN EQUAL TO]10 | [GREATER THAN EQUAL TO]10 | N/A |
Borrowers that are new businesses for a project involving construction and the lender will request the loan note guarantee prior to completion of construction. | [GREATER THAN EQUAL TO]25 | [GREATER THAN EQUAL TO]25 | N/A |
All other borrowers that are new businesses | [GREATER THAN EQUAL TO]20 | [GREATER THAN EQUAL TO]25 | N/A |
7 C.F.R. §5001.105