|
For small businesses and micro enterprises,
CDCLF makes various types of loans
and lines-of-credit available, contingent upon the sufficient availability of
funds and any future program or policy decisions. Loan applications may be
submitted at any time- however, it is highly recommended that you discuss the
application and the application process with a CDCLF
Loan Officer prior to submission. Each loan application is evaluated on a
case-by-case basis for its financial viability and positive social impact.
Program funds and all rated and terms are subject to change without notice.
Eligibility:
Financing will be made
available to small businesses that are locally owned by:
Credit will not be made
available to any business that disrupts the community or environment, operates
illegally, exploits resources (including human), or does not meet certain social
screens (such as: primary activity selling alcohol, tobacco, firearms, et. al.)
Loan
Purposes:
-
Real property - acquisition
or improvement
-
Equipment or inventory
-
Cash flow or working
capital
-
Energy-efficiency -
in cooperation with the New York State Energy Research and Development
Authority's (NYSERDA) Energy Smart Loan Fund, energy-efficiency improvements
may be eligible for a 4% interest rate deduction.
Amounts:
-
For start-up businesses
(with at least 12 months of consistent sales), the maximum loan amount is
$10,000
-
For existing or expanding
businesses, the maximum loan amount is $35,000
-
Participation loans with
other lenders are considered on a case-by-case basis
-
Other special products and
programs are periodically available
Terms:
-
Repayment terms vary based
on use of funds, cash flow and social impact
-
Generally, (non-mortgage)
term loans will not exceed 60 months
-
Generally, bridge loans and
lines-of-credit will not exceed 12 months
-
Fees vary, depending on
size of loan, collateral and other factors
Rates:
Interest rates will be
determined from time-to-time by the CDCLF,
at its sole discretion. The current rate is 8% fixed, subject to change without
notice.
Collateral:
All loans shall be secured by
one, or more, of the following:
Fees:
-
Application fee: $25 due at
time of application (includes cost of credit report)
-
Origination fee: caries
according to size of loan, but typically $200 due at time of closing
-
Legal fee: varies according
to size and purpose of loan, but typically $275 due at closing; may be paid
from loan proceeds (certain loans may be closed at
CDCLF office with no legal fee)
-
Other fees: In addition to
the above, borrower is responsible for all closing costs assiciated with a
loan, including, but not limited to, filing, recording and title fees.
Reporting:
-
Financial reports (monthly,
quarterly or annually, as required by CDCLF)
-
Annual tax returns
-
Report on job creation and
impact on community (as requested)
-
Other information required
by CDCLF
Typical
Steps:
1. Prospective borrower
identifies need and contacts CDCLF.
2.
CDCLF staff informs prospective borrower about loan products and
other services.
3. If appropriate, prospective
borrower completes loan application, including development of business plan, if
applicable.
4. Application submitted to
CDCLF. After initial review, additional
information may be requested.
5.
CDCLF staff orders a credit report and begins underwriting the
loan. Additional information may be requested.
6. When application is
complete, Loan Officer presents to a Loan Committee and, if necessary, to the
Board of Directors.
7. If approved, a commitment
letter is issued. Borrower signs indicating acceptance of proposed loan terms
and conditions.
8.
CDCLF coordinated the loan closing, which may be at
CDCLF or its attorney's office.
9. After loan is made,
CDCLF services and monitors the loan.
10.
CDCLF may offer (or require) borrower to receive technical
assistance. In addition, CDCLF may
offer (or require) periodic visits to business to review business/financial
performance and review upcoming business/financial challenges.
|
|
About
Us
