Private-sector financing can be secured through a bank, savings and loan, an individual, or other non-governmental source.
Lenders set interest rate and fee structure on their portion.
Collateral for financial institutions will be, in most cases, a first mortgage if a bank funds the majority of the project.
Private-sector financing must be at least 50% of the total cost.
Subordinated public-sector financing funded through the Business Development Loan Fund.
Interest rate is fixed, up to 3% below the Wall Street Journal prime rate, at the time of the loan closing. The minimum interest rate is 4%.
Term: Building up to 20 years, equipment up to 7 years, working capital 2-5 years.
A minimum of 10% from the small business being assisted. Cash or land equity.
Closing costs of 2 points plus legal costs.