To assist Savannah businesses obtain financing under the City of Savannah's CDBG Revolving Loan Fund, the Small Business Assistance Corporation makes a business loan directly available to qualified borrowers. Priority is given to businesses located in low to moderate income neighborhoods, minority owned businesses and businesses that will create jobs for low to moderate income persons.
ELIGIBLE USES
- Land and building acquisition
- Acquisition of inventory
- Renovation of current facilities
- Payment of accounts payable
- Acquisition of machinery & equipment
- Business buyouts
- Acquisition of furniture & fixtures
- Working capital
FINANCING PROVISIONS
1. Loan Amount
- Minimum Amount: None
- Maximum Amount: $50,000 subject to availability of funds
2. Collateral
- Pledge of available (personal and/or business) assets
- Personal guaranty
- Security interest on business assets
3. Term (fully amortized)
- Up to five (5) years
4. Fees to Borrower
- One and one half percent (1 ½%) of the total loan amount must be paid to the SBAC by the borrower. The borrower may use the loan proceeds to pay the fee. In addition, the borrower is responsible for out-of-pocket expenses.
ELIGIBLE BUSINESSES
Businesses which meet the following SBAC criteria:
- For profit corporation, partnership, proprietors or producer's cooperatives.
- Operating in Savannah or planning to locate in Savannah.
- Retention of existing employment and creation of new employment opportunities for low to moderate income individuals.
LOAN PACKAGING ASSISTANCE
Loan "packaging" includes the following services:
- SBAC staff will package pre-qualified loan application's to conform to current regulatory requirements and will ensure that the SBAC Loan Committee is given all the essential documentation and information needed to render a quick decision on the application.