Oregon 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 Oregon Angel Fund Promissory Note Term Sheet is a legally binding document that outlines the terms and conditions of a loan agreement between the Oregon Angel Fund (OAF) and the borrowing party. This term sheet serves as an important reference for both parties involved in facilitating a smooth lending process. The OAF is an equity investment fund based in Oregon that provides funding to early-stage companies with high growth potential. The Promissory Note Term Sheet serves as a precursor to the actual loan agreement and covers essential aspects such as loan amount, interest rate, repayment terms, and any specific provisions relevant to the agreement. The term sheet typically includes information regarding the loan amount, stating the specific sum of money being borrowed by the recipient from the OAF. It also outlines the interest rate, which is the percentage to be charged on the outstanding loan balance over the repayment period. Additionally, the term sheet defines the repayment terms, such as the duration of the loan and the frequency of repayments. Furthermore, the Promissory Note Term Sheet may include details about any collateral required for the loan, which serves as security for the OAF's investment. Collateral can be in the form of assets, property, or guarantees offered by the borrowing party to mitigate any potential risk. While the basic structure remains consistent, there may be different types of Promissory Note Term Sheets offered by the Oregon Angel Fund, tailored to specific loan programs or industry sectors. For example, the OAF may have specialized term sheets for technology startups, healthcare ventures, or clean energy projects. These specialized term sheets can address unique financing needs and industry-specific risks and opportunities. Overall, the Oregon Angel Fund Promissory Note Term Sheet plays a crucial role in establishing clarity and understanding between the OAF and the borrower. It serves as a reference point during the loan negotiation process and ensures transparency in the lending relationship.