Participation Requirements

Participation Requirements. An eligible Financial Institution must originate the SBEFI Loan application for an eligible business on the form attached hereto as Exhibit C; along with a cover letter (Exhibit D). The Financial Institution must provide MDA with a Servicing Agreement Letter (Exhibit A) to be accepted upon approval of the SBEFI Loan. The Financial Institution must provide, in writing, all required information for the preparation of SBEFI Loan closing documents. All closing documents must be properly executed and returned to MDA immediately. All exhibits to the closing documents must be filed and copies sent to MDA no later than thirty (30) days from the date of closing. The Financial Institution may charge the business a servicing fee, which may not exceed one percent (1%) of the SBEFI Loan amount. The fee will be a one-time charge collected when the SBEFI Loan is closed. The fee may be paid directly by the business, deducted from the SBEFI Loan proceeds, or financed as part of the Financial Institution's loan. The Financial Institution shall also be responsible for collecting and remitting to MDA, at loan closing, a servicing fee which represents one percent (1%) of the SBEFI Loan. The fee will be a one-time charge and may be paid by the agribusiness, deducted from the SBEFI Loan proceeds, or financed as a part of the Financial Institution's loan. The Financial Institution shall be responsible for servicing the SBEFI Loan, which will include all repayments to MDA. The Financial Institution will also enforce the terms and conditions of all closing documents executed for the SBEFI Loan.