New Hampshire 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 New Hampshire Angel Fund Promissory Note Term Sheet is a comprehensive document that outlines the key terms and conditions of a loan agreement between the New Hampshire Angel Fund and a borrower. This term sheet serves as a preliminary agreement before both parties proceed to drafting a formal promissory note. The New Hampshire Angel Fund Promissory Note Term Sheet covers various essential elements of the loan agreement, providing a detailed description of each aspect. Here are some relevant keywords associated with this term sheet: 1. Loan Amount: This term sheet specifies the amount of money that the borrower can expect to receive from the New Hampshire Angel Fund. The loan amount is determined based on the borrower's needs and the evaluation made by the fund. 2. Interest Rate: The interest rate indicates the cost of borrowing the funds and is a crucial component of the term sheet. It outlines the percentage that the borrower needs to pay on top of the borrowed amount. 3. Repayment Terms: This section highlights the repayment structure agreed upon by both parties. It includes the duration of the loan, payment frequency (monthly, quarterly, etc.), and any special provisions related to repayment. 4. Collateral: If required, the term sheet may specify the collateral that the borrower needs to provide as security for the loan. Collateral can be any valuable asset that can be seized by the fund in the event of loan default. 5. Guarantor: In some cases, a guarantor may be necessary to secure the loan. A guarantor agrees to take responsibility for the borrower's debt if they fail to repay it. 6. Prepayment: This clause allows the borrower to repay the loan before the agreed-upon term ends. It outlines whether any penalties or fees will be associated with prepayment. 7. Governing Law: The New Hampshire Angel Fund Promissory Note Term Sheet will state that the loan agreement will be governed by the laws of New Hampshire. This ensures legal compliance and serves as a jurisdiction reference if any conflicts arise. Different types of New Hampshire Angel Fund Promissory Note Term Sheets may exist depending on the specific purpose or conditions of the loan. For example: — Start-up Funding Term Sheet: Tailored for start-up businesses seeking financial support from the New Hampshire Angel Fund to launch or expand their ventures. — Growth Capital Term Sheet: Intended for established enterprises aiming to secure funding for scaling up their operations or entering new markets. — Bridge Loan Term Sheet: Designed for borrowers who require short-term financing to bridge a financing gap until they secure additional funding from other sources. In conclusion, the New Hampshire Angel Fund Promissory Note Term Sheet is a crucial document that outlines the terms, conditions, and key provisions of a loan agreement between the fund and a borrower.