Terms of loans to ILP Intermediaries.

§ 109.310 Terms of loans to ILP Intermediaries. (a) Disbursement. An ILP Intermediary must be in compliance with ILP Program Requirements in order to draw down its ILP Loan funds. SBA may place restrictions on disbursement, including the amount disbursed to an ILP Intermediary at one time or conditions on subsequent disbursements. (b) Term. An ILP Loan must be repaid within 20 years from the date of the ILP Note. (c) Interest rate. The interest rate for an ILP Loan to an ILP Intermediary is fixed at one percent per annum. (d) Repayment. Payments of principal and interest must be made on a quarterly basis, except SBA will defer the first payment on an ILP Loan for two years from the date of the first disbursement. Interest will accrue on all disbursed funds during the deferment period. Accrued interest will be added to the outstanding principal balance at the end of the deferment period and amortized over the remaining life of the loan. An ILP Intermediary may prepay an ILP Loan at any time without penalty. (e) Collateral. SBA does not require the ILP Intermediary to provide any collateral for an ILP Loan. (f) Fees. SBA does not charge an ILP Intermediary any fees for an ILP Loan.