MEDC Capital Services Team

Help with financing your exports

Contents

• Capital Continuum• Collateral Support Program• Loan Participation Program• Export Program• Contact Information

2

The Capital Continuum

3

Loan Enhancement Programs

4

5

Collateral Support Program

• Intended as a gap filling mechanism, not a stand alone asset.

• Can contribute up to 49.9% of the amount of the loan.• Support value of existing assets and support

expansion of debt to finance growth. • Cash deposit in lending institution, Deposit Agreement

tied to specific account & loan. • Claim in the event of both a default and a deficiency. • Minimum claim is lesser of actual loss after liquidation

of primary collateral or 90% of eligible deposit. • Fees 1-3% at closing. 1% of eligible balance annually

+ deposit rate interest.

6

Loan Participation Program

• Intended to: – facilitate projects with a revenue gap– de-concentrate bank – reduce debt service demands for a short term period

• Program can purchase up to 49.9% of a commercial credit facility and forego the receipt of interest as well as potentially defer the receipt of principal.

• Pro-Rata and Pari Passu• Fees are 1-3% at closing. After grace period, bank rate

(pro rata) plus an annual fee of 1% of the programs outstanding balance.

Export Financing Incentive Program

• Uses a small amount of public resources to defray the incremental cost difference between domestic and foreign working capital loans.

• Reimburse up to 75% of eligible costs– Field Exams– Facility Fees– Guaranty Fees– Letter of Credit Fees

• Up to a maximum of $100,000 per company7

8

Website: www.michiganadvantage.orgbusinessloans@michigan.org

MEDC Capital Services Team300 N. Washington Sq.

Lansing, MI 48913

Contact Info