Steel Valley Enterprise Zone Corporation Business Loan Program Overview and Program Requirements

The purpose of the Steel Valley Enterprise Zone Corporation Small Business Loan Program is to stimulate business development and the creation of new jobs by providing low interest loans, in conjunction with banks and other lenders for a broad range of projects.

Eligible Activities:

• Acquisition of land and buildings
• Fixed asset activities, such as infrastructure improvements to land and renovation to buildings
• Machinery and Equipment
• Working capital and inventory. Please note that the use of loan funds for working capital and inventory may not exceed 20% of the loan funds and must be used in conjunction with other eligible activities
• Funds may not be used to refinance debt

Ineligible Activities:

• Businesses that discriminate – race, color, creed or national origin
• Enterprise whose primary operations serve alcoholic beverages, such as bars, taverns, or beer distributors
• Fraternal clubs with closed membership
• Personal care homes
• Speculative businesses

Amount of Loan:

• Up to 50% of the total project’s cost, maximum loan $100,000
• At least 50% of the remaining project costs must be financed from a private financial institution

Cost to Borrower:

• Interest rate fixed at 4%
• Loan closing costs & filing fees
• 0.5% origination fee of loan amount
• Annual loan maintenance fee of up to $250 per year

Term:

• Not to exceed that of lender or less depending upon collateral

Special Conditions:

• Amount of lending will be weighed against the number of jobs created, amount of total project, and hiring (job creation) preference given to local residents with up to $20,000 per new job for Enterprise Zone residents and $15,000 per new job from other areas

General:

• Loans must be secured by adequate collateral
• Commitment letter from bank needed before closing