Business Loan Program Overview and Program Requirements
- 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:
- Discrimination based on 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 $150,000.
- 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.
- General Terms:
- Not to exceed that of lender or less depending upon collateral.
- Loans must be secured by adequate collateral.
- Commitment letter from bank needed before closing.
Loan approval, terms, eligible expenses, collateral requirements, and funding availability are subject to program guidelines and review.