Maximum Loan Amount: $15,000, subject to the availability of funds
Term: 0-10 years, negotiable (Initial loan payments may be deferred for up to 6 months)
Interest: Prime rate
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.)
All applicable municipal, state, and federal permits must be obtained prior to the loan closing.
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.
The Loan Committee may impose terms and conditions consistent with the goals of the MBLF.
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:
Books open to Montpelier Business Loan Fund Committee, the Director of Planning and Community Development, and their designees
Copies of receipts verifying the use of loan funds as approved by the committee
Employment records, as required by the Loan Committee
Periodic business inspections
Providing monthly financial statements
The submission of yearly cash flow projections
Prior to closing, Planning and Development staff shall execute a letter of commitment which shall detail closing requirements and other terms and conditions.