Guaranteed Loan

Guaranteed loans means applying for community facilities to guarantee the loan rather than having them financed directly. Once a guaranteed loan is obtained from community facilities, the process can continue. Having an understanding of community facilities before continuing is a wise decision. A community facility must provide some sort of service to the community such as utilities or other major infrastructure proceedings. This does not include private or commercial businesses. They also must have a good amount of community usage, and they need to be in a rural community and be involved in some type of public improvement.

Guaranteed loans mean that community facilities will service the loan as well as provide financing. They must be able to collect the amount owed in the event of a default by the borrower. Generally they must establish an ownership interest in the property on which the financing is based through the terms of the financing agreement. However, responsibilities of this agreement will still fall on the lending institution. It is best to know how the terms are processed before deciding to continue getting a guaranteed loan for business or personal expenses. Be aware of the interest rate, the length of the term and that the repayment amount is on a term that can be accommodated. Monthly repayments are most practical, but an annual payment may better fit in some situations. The community facilities that deal with the process must meet certain criteria before continuing on in the process.

The types of organizations that can qualify for these special agreements are town, cities, or counties that have a specific purpose. Non-profit organizations can also qualify for guaranteed loans if they are a service to the community and are making no money. These funds are supposed to be directed to a specific project and therefore should not be applied for personally. A guaranteed loan will take 45 days to process. There is no maximum number that can be applied for; it is simply up to the discretion of those funding the project.

Before considering guaranteed loans, make sure that the company applying is involved with the community. Do not let dissension discourage community cooperation. It is important to build each other up in prayer and for effectiveness of the guaranteed loan. "Look not every man on his own things, but every man also on the things of others" (Philippians 2:4). Once established in a community, make sure that each one looks out for the other's interests. Make sure the community is working together to make the project effective for the good of all.

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