IRP Loan Fund

Eligible Borrowers

• Most small businesses, individuals, partnerships, limited liability companies
• Must be located in a rural area of Merrimack or Hillsborough Counties

Loan Amounts

• $10,000 - $150,000
• At least one job created or retained for every $50,000 from loan fund
• Limited to 50% 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
• Interim Financing for CRDC/SBA 504 projects

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 will be required

Repayment Terms and Interest Rates

• Working Capital: 3 years maximum
• Machinery/Equipment: lesser of the useful life or 10 years
• Real Estate: 20 years maximum
• Equity Injection: equal to the SBA 504 debenture (10 or 20 years)
• Interim: initial term no greater than 6 months
• Interest rates 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 100% of Merrimack or Hillsborough Counties average
• Positive impact on the community’s quality of life including: re-use of existing vacant or under-utilized buildings; central business district revitalization; assembly and utilization of component parts manufactured in the labor 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) 228-1872