PROGRAM: Provides long term, fixed rate, fixed asset financing for small businesses.  Administration of this program was transferred to Hamilton County Development Company in 2001.

 

PROGRAM GOAL:  To facilitate the retention and growth of small business within the City.

 

TYPE OF ASSISTANCE: Loans funded by the Small Business Administration.

 

TYPICAL STRUCTURE: 50% Private Lender; 40% SBA/CDC; 10% Equity

 

MAXIMUM AMOUNT: Up to $750,000; $1,000,000 under certain conditions

 

INCENTIVES:  May use City Linked Deposit Loan or 50% private lender share.

 

BENEFITS: Private lender - 50% (or lower) loan to value ration, first collateral position.  Borrower - Fixed rate for up to 40% of project costs, 10% down payment.

 

ELIGIBILITY: Existing companies with sufficient collateral to secure the loan and adequate cash flow to repay the debt.  Net worth less than $6 Million.  Average net profit after tax less than $2 Million for past 2 years.  1 job to be created or retained per $35, 000 of SBA loan proceeds.

 

ELIGIBLE/INELIGIBLE USES: Eligible uses include acquisition of land, building and/or equipment, construction, renovation. Some professional fees.

 

RATES/FEES: Fixed interest, near market rate.  Fees at approximately 3% (financed with SBA loan) and out of pocket costs at closing.

 

MATURITIES:  10 or 20 years, based on useful life of assets financed.

 

SECURITY: Subordinate mortgages, equipment liens, and personal guarantees.  Additional security may be required.

 

APPROVAL: Hamilton County Development Company and the Small Business Administration.

 

PROGRAM EXAMPLES: DAG, DNK Architects

 

Contact: Gerald Fortson, Development Officer

Phone: (513) 352-1926

Fax: (513) 352-6257