Sec. 23.12. Terms for working capital loans for corporate restructuring or corporate turnaround plans

(a) The project loan may not exceed $400,000 or 50 percent of project cost, whichever amount is less. The 50 percent of the working capital requirement not provided by UDC must come from outside sources.

(b) The loan term shall not exceed three years.

(c) The UDC shall charge interest rates based on needs of the particular project as it determines.

(d) Preference shall be given to loans secured by fixed assets; however, security interests may be subordinate to the security interests of any other private or public financial assistance provided to the firm.

(e) The UDC may also defer payment of interest and/or principal on a loan based on a demonstration that deferral is necessary for the success of a working capital loan to improve productivity and competitiveness, and that the firm will be able to handle the level of repayment when loan payments are resumed.

(f) Relocation out-of-state by the firm while the loan is outstanding shall require immediate repayment of the full amount of the loan.