Business Loan Pre Approval Letter by xtl12556


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									Insurance-Linked Capitalization Arbitrage Program (iCAP)

                                       iCAP Ventures, LLC
                                       8001 Irvine Center Drive
                                       Suite 400
                                       Irvine, CA 92618
                                       (949) 754-4260
             Structured Finance Notes & Bonds
 Information in this presentation is subject to change without notice
 All calculations and timeframes are approximations.
 Ratings are by Standard & Poor and/or Moody’s and/or A.M. Best
 The information herein shall not constitute an offer to sell or the
  solicitation of an offer to buy, nor shall there be any sale of
  securities in any state in which such offer, solicitation or sale is not
  authorized. An offering is made solely by the prospectus to
  accredited investors. The reader of this information is advised to
  consult an attorney and perform adequate due diligence before
  making any decisions.
 Minimum Loan Amount $5M – Max Loan Amount $100M (smaller
  projects will require combining with others to equal a total of $100M
  – multiple structured notes per project are feasible).
 We participate in up to 20% of Equity
 Capital is disbursed in tranches per schedule, with semi-annual audits
                  Qualifications & Requirements

 Project/Venture must meet some or all of these requirements to
  apply with iCAP:
     Purpose – Creates or advances new &/or green technology, jobs, industry,
      real estate (limited new construction), film, for-profit humanitarian,
      others may be considered on their merits and business model
     Profit Potential – Project must be able to pay minimum of 10% per year
      of original loan amount, year 3 - 10 (quarterly starting 27th month).
     Management – Project/venture sponsors must be seasoned and
      experienced in their business sector.
     Proof of Funds – $5,000 per $1M of required capitalization, for
      underwriting, legal, due diligence and processing of loan application.
 Application must contain:
       Business Executive Summary
       Business Plan – Project details, Mgmnt., market & intellectual properties
       Ten year Pro forma / Use of Funds / Disbursement Schedule
       Client/borrower/issuer information sheet &
        proof of funds
             Process, Approval & Use of Funds
 Submit Application and Required Client/Borrower Deliverables

 iCAP Due Diligence and Pre-approval or Non-approval

 If Letter of Pre-approval Issued with Preliminary Term Sheet, Initial
  Underwriting Deposit Required for Loan Processing

 Repackaging, Legal, Underwriting, Beneficial Loan Agreement, Collateral
  Note Reservation, Account Established, Final Term Sheet Issued

 Estimates of Initial Items to be Paid from Underwriting Deposit:

       LS Aggregation Retainer                          $ 100,000
       Introducing Managing Director                    $ 50,000
       Legal (PPM, Loan Agreements, etc.)               $ 75,000
       LE Risk Analysis                                 $ 75,000
       Professional Fund Admin (PFA) Retainer           $ 25,000
       TPA, Trustee, Custodian Services Setup           $ 30,000
       Issuing Agent – Private Investment Bank (IPIB)   $ 145,000
       TOTAL                                            $ 500,000
                     Timeline & Loan/Note Processing Cycle
  $72,500               Timeline
                                                          iCAP                                                 Timeline
  Issuing                                          Secures Institutional
 Agent &
                         19 to 26                 Investor/Lender Partners        START                         Starts
                          weeks                    Arranges A-Rated
    IPIB                                          Collateral Guarantees
    Fees                      Excess funds         Lends Net Proceeds to
  $25,000                                         Project & Provides TPA
                               released to         Retains % of Equity       iCAP receives &
Legal Costs                    Project per                                   approves Project(s)
                              Disbursement                                   BP, Pro forma and
      Est.                      Schedule           Example $100M Loan           Application
    Timeline                                        $80M Net Proceeds
     weeks                                                                                         Establish Project
     14 - 18                                                                                       Account – costs
                                                                                                    to be expensed
              Funds released              Reserve Account Established for Interest,                   as incurred
             for acquisition of                Premium Payments & Maint. Fees
            Insurance-Linked                                                                                  weeks 0 to
  LE Risk
                  Collateral                                                                                  6 per # of
  Analysis                               First 2-Yrs Principal is pre-paid. Project pays
               and A-Rated                                                                                     projects
  $30,000                               10% of Gross Loan Amount yrs 3 – 10 to equal
            reinsurance binder                                                                                 required
TPA, Trustee                                     total Principal repayment only
  Services                       Project underwritten                          iCAP secures
   Setup                            & attached to                          Funding from Partner
                                  Insurance-Linked                              Institutional
                                   Asset Collateral                           Investor/lender
       Est.                                                                                          Est. Underwriting Costs:
                               Identified & reinsurance
    Timeline                                                                                          $25,000 Legal Retainer
     weeks                                                                                           $50,000 Introducing MD
                   $100,000 LS Aggregation Retainer                  $72,500 Private Inv. Bank
       7-13                $25,000 Legal Costs                         $25,000 PFA Retainer
            iCAP Funding Process & Basic Structure

                                                             $150M Cost
                             Returns Par & 5% Coupon           for Life
                                Per Maturity Events          Settlement
   Syndication of
  Investors/Lender                           Invests in                         The Insurance-
                                                                of $1B
          s                                 Side Fund                                Linked
                      Invests into iCV                           10:1
        3.5:1                              Securitization                      Arbitrage, which
                                                                              creates loan funds
   Equity                                                   Refills Reserve      to qualifying
Participation                       iCap                     Per Maturity     ventures – capital
                                   Ventures                     Events         which is isolated
            Re-pays Principal                                                    and unrelated
             in 10-Yr Term                                                      (directly) to the
                                                                $100M             Institutional
                     Loans $100M           Administers          Reserve        Investor(s) Par &
                       in Funds            Reserve per         Account                IRR.
     $100M Pre-                           Requirements      pays Premiums,
     Approved                Equity
                                                             QIB Coupon
       Client             Participation
      Projects                                                   Costs
                                Borrower Benefits

       100% Loans Possible
       No Collateral Requirements Possible
       No Personal Recourse or Guarantees
       Principal Repayment Only*
       First 2 Yrs Interest Pre-paid (no additional due until 27th month)
       Borrower Retains at least 80% of Equity
       Most Sectors Considered in Free-World
       Smaller Loans Considered if Combined with Other Project Funding
       Low Entry Cost ($5K per Million)**
       Application Approval to Funding 120 to 180 Days
       Pre-approval Process in 7 to 10 Business Days

* The cost of .5% for Underwriting and 3% Borrower to Broker Commission = 3.5% Points of loan costs
** Underwriting deposit 100% refundable if iCV fails to fund, not refundable if client fails to continue
               Summary & Contact

 Funding Limits - $5M - $100M
 120-180 day process
 $5K per $1M Initial Underwriting Cost
 1st 2-yrs Principal pre-paid & Prin. only payments yrs 3-10
 Requirements:
   Viable Project/Experienced Management
   Executive Summary/Business Plan
   10 Yr Pro forma / Use of Funds / Disbursement Plan
   Client Application
   Proof of Funds
 Up to 20% Equity
Contact:   iCAP Ventures, LLC
           8001 Irvine Center Drive, Suite 400
           Irvine, CA 92618
           (949) 754-4260
    Jim Nash -
    Dan Somers -

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