Community Development Financial Institution General Fund
The General Business Loan Fund focuses on assisting commercial and industrial businesses that create jobs with loans of up to $200,000.
Eligible Activities:
- Site purchase and development, new construction and rehabilitation of buildings (with substantial occupancy or lease commitments);
- Business acquisition, expansion and conversion;
- Working capital, (including Export/Trade and Research and Development activities);
- Machinery and equipment acquisition; AND
- Conversion and modernization.
Maximum Loan Amount:
33% of the total project costs up to a maximum participation of $200,000 to any one Borrower.
Collateral Requirements:
- Business assets, real and personal;
- Mortgages, commercial and personal;
- Personal guaranties; AND
- Assignments of: life insurance, stock and leases.
Term:
Negotiable based upon cash flow of business or life expectancy of assets financed (typically 5 years), not to exceed twenty (20) years.
Interest Rate:
Negotiable based upon cash flow of business and risk of credit, fixed for the term of the loan, not to exceed Prime plus seven (7) percent.
Job Creation and Job Retention
To be eligible for this program, the recipient business must be creating or retaining jobs for low to moderate income people. Fifty-one percent or more of the jobs create or retained must be taken by persons from low to moderate income households as defined by HUD.
