To assist with the expansion of existing small businesses and encourage the formation of new small business enterprises located within Martin Luther King, Jr., Blvd. corridor.
ELIGIBLE USES
- Land and building acquisition
- Construction and/or renovation of facilities (facilities must be utilized by the business applying for the loan)
- Acquisition of machinery and equipment
- Purchase of inventory
- Working capital
- Leasehold Improvements
- Business Purchase
GENERAL FINANCING PROVISIONS
1. Loan Amounts (subject to availability)
- Minimum Amount: none
- Maximum Amount: $150,000
2. Collateral Requirements
- Pledge of available personal and/or business assets
- Personal guaranty
- Security interest on business assets
3. Term (fully amortized)
- Up to three (3) years for working capital and inventory
- Up to seven (7) years for fixed asset purchases
- Up to ten (10) years for real estate acquisition or facilities improvement
4. Interest Rates
The interest rate is set at Prime rate, as stated in the Wall Street Journal, minus four (4%) percent. The interest rate will be no lower than four percent (4%) and no more than 12%.
5. Fees to Borrower
The borrower is responsible for all closing cost associated with the loan
ELIGIBLE BUSINESSES
- Small business as defined by the U.S. Small Business Administration
- For-Profit businesses
- Independently owned and operated business
- For every $35,000 of loan proceeds, a job must be created or retained for a low to moderate income individual (based on household income); and
- provide substantial public or area benefits
- HUD Special Purpose Loan is for businesses located only on Martin Luther King, Jr., Blvd.
INELIGIBLE USES
- Speculative real estate investment – this includes apartments and/or residential housing of any type
- Non-Profit organizations