Home Loans and Guarantees Bond Financing Meetings
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Business Loan Enhancement Program The Business Finance Authority knows that growing companies need to leverage their equity to support growth. The Business Loan Enhancement Program facilitates this by enabling participating banks and lending institutions to provide their customers with up to 90% fixed asset financing. The BFA guarantees that portion of the loan that exceeds the bank’s lending guidelines (maximum guarantee the lesser of $250,000 or 20% of project cost), enabling the bank to keep the “effective” loan-to-value ratio within standards. The guarantee is reduced dollar for dollar by principal payments on the loan.To be eligible for a loan through the Business Loan Enhancement Program, a New Hampshire business must have at least 25 full-time equivalent employees, and must demonstrate adequate cash flow to repay the loan. To find out more about the Business Loan Enhancement program, contact the BFA at (603) 415-0190. Eligibility- The maximum guarantee amount shall not exceed the lesser of $250,000 or 20% of the project cost. - The total principal amount of the loan may not exceed 90 percent of the appraised fair market value of the collateral securing repayment of the loan. - The maturity of the loan must not exceed 10 years. - The guarantee shall be reduced dollar for dollar by principal payments on the loan. - Any real estate financed must be owner occupied. - The loan amortization must not exceed 20 years. How to Apply - The business applies for a loan through a participating bank. If a guarantee is necessary, the bank will submit an application to the BFA. - The terms of the loan will be determined by the bank, keeping in mind the BFA’s guarantee criteria. - All guarantees must receive approval of the BFA and authorization from the Governor and Executive Council. FeesA fee equal to 1% is due at closing. An annual fee of up to 2% of the loan guarantee is due annually and paid in arrears.
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