Business Finance and Incentives

North/Northeast Business Assistance Loan Fund
(Hatfield)

OVERVIEW

The primary objective is to build community wealth through local business ownership, and to create and retain jobs in the inner North/Northeast part of the city. The program also aims at attracting businesses that provide needed goods and services in the neighborhoods.

Eligible Purpose

This program is designed to assist new and existing small businesses in the inner North/Northeast neighborhoods by providing financing for the gap between project cost and private financing.

Other program objectives are to improve the physical appearance of the targeted area, 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

Within the boundaries of inner North/Northeast as defined by the original Hatfield loan program.

Loan ProgBuram Guidelines

• Loan amount is generally up to $300,000.
• One job for every $25,000.
• Interest rate: below market and is negotiated at the time of application.
• Fee: generally 1% of amount borrowed.
• The loan term varies. Normally up to five years with the possibility of the first-year loan payments deferred to allow start-up companies to build a cash cushion. Monthly payment of the accrued interest is required.
• Borrower must provide a minimum of 10% of total project cost.
• Borrower must have reasonable credit.
• Principals are required to have management and/or industry experience.
• Personal guaranties of all owners with greater than 20% ownership in the business

For more information call us at 503-823-3321 or email Neal Fitzgerald..

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