Idaho Angel Fund Promissory Note Term Sheet

• Category: Small Business - Investment or Funding
• State: Multi-State
• Control #: US-ENTREP-004-2
• Format: Word; Rich Text

Description

"An angel investor or angel (also known as a business angel or informal investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. New start-up companies often turn to the private equity market for seed money because the formal equity market is reluctant to fund risky undertakings. In addition to their willingness to invest in a start-up, angel investors may bring other assets to the partnership. They are often a source of encouragement; they may be mentors in how best to guide a new business through the start-up phase and they are often willing to do this while staying out of the day-to-day management of the business. Term sheet is a non-binding agreement setting forth the basic terms and conditions under which an investment will be made." The Idaho Angel Fund Promissory Note Term Sheet is a comprehensive document that outlines the terms and conditions of a loan provided by the Idaho Angel Fund to a recipient. This term sheet serves as a precursor to the final loan agreement and provides an overview of the essential details and parameters of the financial arrangement. The Idaho Angel Fund Promissory Note Term Sheet typically includes several key sections that cover various aspects of the loan. These sections often consist of: 1. Loan Amount: This section specifies the principal amount of the loan that will be disbursed to the borrower. It outlines the exact sum of money that the borrower will receive from the Idaho Angel Fund. 2. Interest Rate: The term sheet outlines the interest rate that will be applied to the loan. This rate represents the cost of borrowing and is typically expressed as an annual percentage of the outstanding balance. 3. Repayment Terms: This section elaborates on the repayment schedule and includes details such as the term of the loan, the payment frequency, and the first payment date. It also outlines any grace period or balloon payment arrangements, if applicable. 4. Collateral and Guarantees: The term sheet may include provisions relating to collateral or guarantees required for securing the loan. This ensures that the Idaho Angel Fund has sufficient protection in case of default. 5. Prepayment: If there is an option for the borrower to prepay the loan before the maturity date, this section would outline any prepayment penalties or terms associated with such actions. 6. Events of Default: This section entails a list of circumstances that, if triggered, can be considered as a default on the loan. It specifies the consequences of default, which may include acceleration of the loan or legal action. 7. Governing Law: The term sheet may include a clause that designates the applicable jurisdiction and governing law for any disputes arising from the loan or term sheet. It is worth noting that while the above sections are commonly found in an Idaho Angel Fund Promissory Note Term Sheet, variations and additional provisions can exist depending on the specific terms or preferences of the Idaho Angel Fund. Thus, it is important to carefully review the term sheet for specific details that may be applicable to different types of loans within the Idaho Angel Fund.

The Idaho Angel Fund Promissory Note Term Sheet is a comprehensive document that outlines the terms and conditions of a loan provided by the Idaho Angel Fund to a recipient. This term sheet serves as a precursor to the final loan agreement and provides an overview of the essential details and parameters of the financial arrangement. The Idaho Angel Fund Promissory Note Term Sheet typically includes several key sections that cover various aspects of the loan. These sections often consist of: 1. Loan Amount: This section specifies the principal amount of the loan that will be disbursed to the borrower. It outlines the exact sum of money that the borrower will receive from the Idaho Angel Fund. 2. Interest Rate: The term sheet outlines the interest rate that will be applied to the loan. This rate represents the cost of borrowing and is typically expressed as an annual percentage of the outstanding balance. 3. Repayment Terms: This section elaborates on the repayment schedule and includes details such as the term of the loan, the payment frequency, and the first payment date. It also outlines any grace period or balloon payment arrangements, if applicable. 4. Collateral and Guarantees: The term sheet may include provisions relating to collateral or guarantees required for securing the loan. This ensures that the Idaho Angel Fund has sufficient protection in case of default. 5. Prepayment: If there is an option for the borrower to prepay the loan before the maturity date, this section would outline any prepayment penalties or terms associated with such actions. 6. Events of Default: This section entails a list of circumstances that, if triggered, can be considered as a default on the loan. It specifies the consequences of default, which may include acceleration of the loan or legal action. 7. Governing Law: The term sheet may include a clause that designates the applicable jurisdiction and governing law for any disputes arising from the loan or term sheet. It is worth noting that while the above sections are commonly found in an Idaho Angel Fund Promissory Note Term Sheet, variations and additional provisions can exist depending on the specific terms or preferences of the Idaho Angel Fund. Thus, it is important to carefully review the term sheet for specific details that may be applicable to different types of loans within the Idaho Angel Fund.