The 4-1 Loan Program is a Systematized Process designed to bring together; Project Owners, Lenders, and Investors under one roof. Too often project owners are faced with the old situation of “Which Comes First, The Chicken Or The Egg”. Investors are always looking for projects that are profitable and at low risk. Lenders are looking to lend money to projects that are well thought out and can make their payment. For clients with a specific project to finance or have a series of projects that can be approved through a funding pool, Our Lenders 4-1 Loan Program can provide a Credit Facility of up to 4X the Client’s “Initial Deposit” Funds amount and allows all participating parties to develop a working relationship.
Here are The Requirements and Procedures
- Global projects can be submitted.
- Minimum initial funds amount is $1M USD – no maximum.
- Minimum Initial Deposit is $1M USD . This will result in a maximum Credit Facility of $4M USD.
- Interest Rate is LIBOR+2, or 3.5% (whichever is higher at the date of signing of the contracts).
- Client always keeps their “Initial Deposit” capital in “safe-keeping”, where these funds are never exposed to any risk.
- “Initial Deposit” would remain in the client’s own bank account if it is $10M USD or greater; for amounts under $10M USD the funds will be deposited with an approved Deposit Agent.
- The project is then funded per a monthly draw down schedule that is agreed to by both parties (Our Lender/Investor’s insurer) as part of the Loan Contract.
- Projects are completed as per the schedule, and the client may execute any of the 4 Repayment options as outlined, at their sole discretion.
- Applicant must have updated proof of 20/25% project funding.
- Budget Top Sheet
- Project Outline
- Project/Production Schedule
Acceptable Forms of Proof of Funds
- Bank Statement showing the required level of funds. This statement must show the name of the account holder and the banking institution.
- Investment portfolio showing the required level of funds in cash or highly liquid investments.
- If the bank statement or portfolio is held by any person other than the signatory for the borrower, a letter from that person will be required stating they will be providing the initial funds to the project for the purposes of procuring the loan.
- Letter from registered investment house or wealth management company, on the company letterhead and signed by an authorized representative, stating that project owner or investor has cash or liquid, marketable securities with a market value in excess of the initial funds amount.
- If the letter represents funds held by anyone other than the person who is the signatory for the loan, a letter from that person will be required stating they will be providing the initial funds to the project for the purposes of procuring the loan.
- A formal term sheet from an institutional or private lender stating that the client company has been approved for a loan in the amount of the required initial funds amount.
- Statement of credit lines for the borrower showing sufficient available credit on those lines to be able to provide the required initial funds amount.
Bridge Loan Partnership Program
If a Client is unable to bring their Initial Deposit of 20/25% to the process, TMI & Partners, Ltd, has been working to develop strong relationships with several entities who can provide these funds. Each group has its own ideas on projects that suit their interests and overall goals towards their platform. The 4-1 Loan Program now allows these Bridge Loan Partners to support projects as well as bring other projects that they are already involved with. As a condition of their investment, the project owner may need to offer interest payments and/or an equity position in the project to the Bridge Loan Partner.
- In the cases where there is an initial 20% of the total budgetary cost already in place, our Lenders 4x multiple will be the remaining 80% of the budget, fulfilling the entire financing requirement. If the Bridge Loan Partner provided 20% of the budget, their “Initial Deposit” would be needed to be spent into the project to complete it (as the final 20% of the funding requirement).
- In the cases where there is an initial 25% of the total budgetary cost already in place, our Lender’s 4x multiple can be the full 100% of the budget. If the Bridge Loan Partner provided 25%, their “Initial Deposit” is simply returned to them in full.
This 4-1 Loan Program puts the “Initial Deposit” in a ZERO risk position, as these funds are never exposed to any risk whatsoever. Any Bridge Loan Partner who brings the “Initial Deposit” is completely secured through Our Lenders system and to reiterate, at the end of the loan distribution to the project, the “Initial Deposit” funds are returned in full.