Loan Terms:

1. Maximum Loan Amount: $15,000.00, subject to the availability of funds
2. Term: 0-10 years, negotiable. Initial loan payments may be deferred for up to 6 months.
3. Interest: prime rate
4. Collateral/Credit Requirements:
   • The MBLF requires collateral as is deemed necessary to secure the loan. Such security may include real or personal property, income, or other items of value.
   • The MBLF requires instruments of security as it deems necessary. Such security instruments include mortgages, promissory notes, UCC-1 Statements, etc.
      

Loan Procedures:

• The Loan Committee may impose terms and conditions consistent with the goals of the MBLF.
• Prior to closing, Planning and Development Staff shall execute a letter of commitment which shall detail closing requirements and other terms and conditions.
• All applicable municipal, state, and federal permits must be obtained prior to the loan closing.
• Loan funds will not be disbursed until the borrower has met all conditions of the commitment letter, delivered security instruments, and executed all documents required. Typical loan conditions may include:
  • Providing monthly financial statements.
  • Books open to Montpelier Business Loan Fund Committee, the Director of Planning and Community Development, and their designees.
  • The submission of yearly cash flow projections.
  • Periodic business inspections.
  • Copies of receipts verifying the use of loan funds as approved by the Committee.
  • Employment records, as required by the Loan Committee.
• Insurance must be maintained on all collateralized assets. If the business is located in a federal flood zone, the business must have and provide proof of flood insurance. The City of Montpelier must be named as loss payee on all insurance policies.