LOAN GUARANTY PROGRAM

This program provides guarantees to private lenders on loans made to small businesses.  Loan proceeds may be used for all project costs including fixed assets, working capital, start-up costs, rental payments, interest expense during construction, and professional fees.  The maximum guarantee is 75% of the total loan, or $375,000, whichever is less.  The loan is restricted to a maximum term of twenty years with an interest rate limited to the current legal rate.  The borrower must have equity in the business, no matter how small, and pay a guaranty fee of 2% of the guaranteed portion of the loan.  The lender will require the necessary collateral to secure the loan.  Loans cannot exceed 90% of the fair market value of this collateral.