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Terms
- Maximum guarantee is lesser of 75% or $750,000 for fixed assets, permanent working capital, and
inventory.
- Maximum guarantee is lesser of 75% or $200,000 for revolving working capital.
Examples:
| Principal Amount |
Maximum Guarantee |
Guarantee Amount |
|
$1,000,000
|
75%
|
$750,000
|
|
$1,500,000
|
50%
|
$750,000
|
|
$2,000,000
|
37.5%
|
$750,000
|
- Maximum term of the guarantee is 5 years for fixed assets, inventory
and permanent working capital, and 2 years for revolving working capital.
- Amortization may exceed the term of the guarantee but cannot exceed
the useful life of the security.
- Interest rate is set by the lender and is subject to WHEDA® approval.
A variable rate loan may not exceed Prime + 2.75%.
- Loan must be secured by the assets being financed. Personal guarantees may be required.
Fees
- Closing fee equal to 2.5% of guaranteed amount*
- Servicing fee of 0.25% on the outstanding guarantee amount due annually
*May be financed and included in the loan request, but these fees will not be guaranteed.
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