Financial Assistance.
Section 10
SEC. 10. Financial Assistance. - The financial assistance under this Act shall be awarded to deserving projects in a total amount not exceeding eighty-five percent (85%) of the value of the real physical assets of the project. The project sponsors must invest as equity at least fifteen percent (15%) of the real assets of the project, supplemented by financial assistance from the CIF in the following maximum proportions to real physical assets of the project: ten percent (10%) - grants (maximum) for pre-operating expenses, technical assistance, feasibility studies, post-production marketing assistance, training and institution-building. twenty percent (20%) - investment in equity by the CIF in the enterprise. This shall be subject to a stock purchase agreement within a ten-year period at book value, in which the project owners will be the priority buyers. fifty-five percent (55%) - soft or concessional loans with: loan terms allowing for reasonable grace periods; interest rate of not more than eleven percent (11%), or seven percent (7%) above the CIF's or the National Government's true borrowing rate from bilateral or multilateral lenders, whichever is lower; and collateral requirement not to exceed the total assets of the project per se, inclusive of the real estate where the factory or industry is located.