Economic Development Loan Fund

Overview

CRDC can help you through the Economic Development Loan Fund if you are an eligible small business or an eligible non-profit organization located in CRDC’s service area.

Eligible borrowers: Most small businesses, individuals, partnerships, limited liability companies. Must be located in communities located within Merrimack, Belknap, Grafton or Sullivan Counties. Loan Amounts $10,000 - $150,000 At least one job created or retained for every $20,000 from loan fund Limited to 33% of total financing package

Uses of Funds

• Working Capital: raw materials and inventory, accounts payable, accounts receivable
• Fixed Assets (excluding SBA504): land, building, machinery and equipment
• “Equity” injection in CRDC/SBA 504 loans
• Working Capital Guarantees: raw materials and inventory, accounts payable, accounts receivable (excluding bank lines of credit)
• Interim Financing for CRDC/SBA 504 projects
• Loan Participations

Collateral and Lien Position

• Loans shall be collateralized with a security interest in the assets financed
• CRDC may subordinate to bank loans on a case by case basis
• Personal guarantees may be required

Repayment Terms and Interest Rates

• Working Capital: 3 year maximum term / 54 month maximum amortization
• Machinery/Equipment: lesser of the useful life or 10 years
• Equity Injection: equal to the SBA 504 debenture (10 or 20 years)
• Working Capital Guarantees: 30 day minimum and 12 month maximum
• Interim: Initial term no greater than 6 months
• Real Estate: 20 years maximum
• Interest rates and loan guarantee fees vary based on credit and terms provided

Fees and Charges Paid by Borrower

• Application Fee: 2% of loan amount or $350 whichever is greater
• Title Insurance, if applicable
• Lender’s legal costs, if applicable
• Appraisal fee, if applicable
• Recording Fees

Program Priorities - Approved projects must demonstrate one or more of the following:

• Enhance or stabilize manufacturing employment
• Provide wages of 120% of area average
• Positive impact on the community’s quality of life including: re-use of existing vacant or under-utilized buildings; central business district revitalization; provide benefit to low and moderate income individuals; assembly and utilization of component parts manufactured in the market area; improvement of environmental quality and/or re-use of processed materials; reduction in seasonality of employment.

For information please contact Liz Sweeney or Betsy Segal
CRDC • (603) 228-18722