What is the basic criteria for qualification under the State Loan Guaranty Program?
• Has no probability that the loan would be granted by a financial company under reasonable terms and conditions, and the borrower has demonstrated a reasonable prospect of repayment. • Will use the loan proceeds exclusively for business activities in this state. • Qualifies as a small business loan or an employment incentive loan. • Has a minimum equity interest, average 30%. • And as a result of the loan, the jobs generated or retained conform to the employment criteria. 2. What if the borrower has no collateral to support their loan request? A lack of collateral should not preclude a small business from obtaining a guaranty. If worthwhile collateral is available, however, SBFDC will attempt to secure the loan with that collateral. A refusal on the part of the Borrower constitutes a basis for decline. 3. When are financial projections required? They are required if a company has not shown three consecutive years of historical profits and growth. The company may be in start-up or reco
