National CAPLines Authorization Boilerplate - SBA

Option 2.2 - No Monthly Interest Payment
Principal payments are to be made upon receipt of proceeds from sale of seasonal inventory and
collection of accounts. Lender will apply each payment first to interest accrued to the date of
receipt of payment, and the balance to principal. At the conclusion of each season for which
funds are advanced, any remaining principal and interest attributable to that season will become
immediately due and payable.
Option 3 - For BUILDER’S CAPLines
Borrower must pay interest on the outstanding principal balance every[SELECT - month, two
months, three months, four months, five months, six months] beginning six months from the
month [SELECT (same as in F.1.) - this Note is dated - OR - of initial
disbursement on this Note]; interest payments must be made on the [SELECT - ______
calendar day, first calendar day, second calendar day, etc., same day as the date of this Note,
same day as the date of initial disbursement on this Note] in the months they are due.
Borrower must make additional payments as follows:
Option 3.1 - For Single BUILDER'S CAPLines — Mandatory
The project financed by this loan must have an amount of sale proceeds applied to the
outstanding loan balance sufficient to fully repay all funds drawn on this loan. Lender will
apply each payment first to interest accrued to the date of receipt of payment, and the balance
to principal.
Option 3.2 - For Multiple BUILDER'S CAPLines — Mandatory
Each project financed by this loan must have an amount of sale proceeds applied to the
outstanding loan balance sufficient to fully repay all funds drawn on this loan for that specific
project. Lender will apply each payment first to interest accrued to the date of receipt of
payment, and the balance to principal.
Option 4 - For All Working Capital CAPLines — Mandatory
Borrower must pay interest on the outstanding principal balance every month beginning one
month from the month [SELECT (same as in F.2.) this Note is dated - OR - of
initial disbursement on this Note]; monthly interest payments must be made on the [SELECT
- ______ calendar day, first calendar day, second calendar day, etc., same day as the date of
this Note, same day as the date of initial disbursement on this Note]. Borrower must make
additional payments as follows:
Principal payments to be made from cash sales and receivable collections. Lender will either
apply each payment first to interest accrued to the date of receipt of payment and the balance to
principal or first to interest as scheduled and the balance to principal.
SBA Loan Number: [Loan Number] Page 9
SBA Loan Name: [Loan Name] (CAPLines 2012)