Guarantee Percentage

Guarantee Percentage. The percentage of the loan guarantee will be determined by the type of loan, and the risk profile of the loan. To determine the percentage of guarantee approved for each loan, the guarantee application will be reviewed by the MDA’s Small Business Loan Guarantee Review Committee. The committee will consider credit history, experience and history of the borrower, collateral coverage, and job creation in its evaluation and will set the guarantee percentage based on these factors. Loans for working capital, lines of credit, and accounts receivable will be eligible for a loan guarantee of sixty percent (60%). Loans to finance fixed assets, such as equipment and real estate, will be eligible for a loan guarantee of up to eighty percent (80%).