Business Finance and Incentives

Enterprise Loan Fund

OVERVIEW

Primary objectives are to spur development in distressed neighborhoods, build community wealth through local business ownership, and create new jobs. The program also aims at attracting businesses that provide needed goods and services in the targeted neighborhoods.

Eligible Purpose

This program is designed to assist new and existing small businesses citywide by providing bridge loans for high impact projects on a shorter term, and by assisting expanding businesses to purchase equipment and real estate.

Other objectives of the program are to improve the physical appearance of targeted areas, create wealth within the community, increase credit-worthiness of marginal clients so that they can attain private sector financing, and increase minority and women ownership of businesses citywide.

Service Area

Citywide, with preference given to targeted neighborhoods (inner North/Northeast and outer Southeast).

Loan Program Guidelines

• A private, for-profit enterprise.
• One job for every $25,000 loaned.
• Loan amount is generally up to $300,000.
• Interest rate: generally below market and is negotiated at the time of the loan application.
• Fee: generally 1% of amount borrowed.
• Term: varies, usually up to 10 years with a five-year balloon payment. Where the loan is for the purchase of real estate, the term may be extended to 20 years with a five-year call date.
• Borrower must provide a minimum of 10% of total project cost.
• Borrower and principals of the company must have good credit.
• Borrower is required to have strong management or industry experience.
• Positive cash flow must be demonstrated with at least a 1:15 debt coverage ratio.
• Collateral coverage of at least 125% of loan amount must be secured.
• Personal guaranties of all owners with greater than 20% ownership in business

Request an application from PDC Business Finance, 503-823-3321 or email Neal Fitzgerald.

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