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SBA
504 ASSISTANCE AGREEMENT
This
agreement is made this______day of___________, 20____ between the Greater
Sacramento Certified Development Corporation dba Capital Funding a California
non-profit corporation, (hereinafter referred to as "GSCDC")
and_____________________________________ (hereinafter collectively
referred to as "CLIENT")
RECITALS
A.
GSCDC is certified by the United States Small Business Administration
(SBA) to make Section 504 loans and seek SBA guarantee of
these loans. The corporation, members, officers, agents
and attorneys are hereinafter collectively referred to as
"GSCDC".
B.
CLIENT is interested in obtaining a Debenture issued by
GSCDC and guaranteed by the SBA pursuant to Section 504
of the Code of Federal Regulations.
C.
CLIENT and GSCDC desire to enter into a written agreement
to effectuate their understandings.
1.
LOAN PACKAGE
GSCDC
with the assistance and at the request of CLIENT agrees
to prepare a complete set of documents with supporting exhibits
(hereinafter referred to as "LOAN PACKAGE") for use and
benefit of CLIENT. The LOAN PACKAGE is intended for use
by CLIENT in seeking financial assistance from the SBA and/or
private lending institution.
GSCDC
agrees to assist CLIENT in applying for financing from a
private lending institution and, if successful, GSCDC will
apply for financing from the SBA.
2
DEPOSIT
CLIENT
shall pay a deposit of $1,500.00 to GSCDC promptly after
the execution of this Agreement.
If
the loan request is declined by the GSCDC or SBA, the CLIENT
will receive a full refund of the deposit.
If
the loan request is canceled by CLIENT prior to an SBA approval,
CLIENT will be obligated to pay for GSCDC's staff time for
the preparation of the LOAN PACKAGE at the rate of $75.00
per hour and any outside expenses related to the request,
which will be credited against the deposit.
If
the loan request is approved by SBA, and CLIENT cancels
or fails to satisfy the terms and conditions of the Loan
Authorization for any reason, CLIENT will be obligated to
pay GSCDC 1.0% of the SBA net debenture amount.
3.
SBA LOAN COSTS financed by SBA
Guarantee
Fee - 0.0% of the net Debenture amount. Effective October 1, 2007.
Funding
Fee - 0.25% of the net Debenture amount.
Processing
Fee - 1.5% of the net Debenture amount.
Closing
Cost - $2,500.00 fee to verify all project costs, prepare
closing documents, and for GSCDC'S legal counsel review
in order to fund the SBA debenture. There may be additional costs for Land Lease and UCC type transacions.
Underwriting
Fee - 0.5% of the aggregate of the Net Debenture amount
plus administrative fees listed above.
4.
OTHER COSTS not financed by SBA
Title
Insurance Cost
SBA
requires an ALTA title insurance policy, endorsements 100,
116, 110.1 and proper recordation. These costs can be prepaid
at the time the interim bank loan is closed and if the same
title company will be used to handle the SBA closing. An
estimate of costs can be secured through your title company.
Legal
Opinion
At
or prior to loan closing, CLIENT'S counsel shall submit
an acceptable legal opinion verifying that all CLIENT and
guarantor entities (other than natural persons) are properly
organized, in good standing, validly existing, and have
the authority to borrower or guarantee; and that the documents
executed by the CLIENT and guarantors have been authorized,
executed, and delivered by an authorized officer, and are
valid and binding obligations, enforceable in accordance
with their respective terms; and opinions as to such other
matters as SBA or GSCDC may require.
5.
NO GUARANTEE OF FINANCING
GSCDC
is relying upon CLIENT to promptly and accurately supply
information and to assist in preparing the application.
In addition, financing is dependent upon many factors that
GSCDC cannot control, including economic factors and the
decisions of the SBA and financial institutions. Accordingly,
GSCDC does not guarantee that CLIENT will obtain financing.
CLIENT
agrees that GSCDC shall not be responsible in any manner
or liable to CLIENT for any cost of liabilities incurred
by CLIENT or any other person in the event that financial
assistance is not obtained from the SBA or private lending
institution.
6.
METHOD OF LOAN REPAYMENT
To
repay the SBA loan, the Central Servicing Agency will automatically
withdraw equal monthly payments from CLIENT'S bank account
on the first day of each month. The monthly payment includes
principal, interest and servicing fees. The monthly payment
shall be made by Automatic Clearing House (ACH).
7
PREPAYMENT OF DEBENTURE
Prepayment
of the debenture will carry a premium if CLIENT chooses
to prepay during the first half of the stated term. The
premium will be a declining percentage of the debenture
applied to the outstanding balance.
8.
BUSINESS AND CREDIT INFORMATION
CLIENT
agrees that GSCDC may receive confidential personal, business,
financial and credit information about CLIENT from financial
institutions, credit reporting agencies or other sources.
GSCDC agrees that all information received will be held
in confidence and not divulged to persons or agencies, other
than prospective lenders or guarantors.
9.
ATTORNEY FEES
If
legal action by either party is brought because of breach
of this Agreement or to enforce a provision of this Agreement,
the prevailing party is entitled to reasonable attorney's
fees and court costs.
10.
PROVISIONS OUTSIDE THIS WRITTEN AGREEMENT
Both
parties agree that there are no other promises, terms or agreements
(oral or written) outside this Agreement, and that this written
Agreement controls over any such terms, promises, or agreements,
whether they are conflicting, additional or consistent.
11.
SIGNATURES
CLIENT
certifies that the person(s) signing on behalf of CLIENT are
authorized to do so by any partnership, partners, corporation
or other entities that are to be assisted under this Agreement
GSCDC: |
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CLIENT: |
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| By_________________________ |
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By_________________________ |
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