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Capital Access Program An important part of
the Business Finance Authority's mission is to provide financing alternatives
for small New Hampshire companies considered to have more than conventional
risk. The Capital Access
Program (CAP) allows these businesses, which are typically starting-up or
expanding, to obtain loans of up to $100,000 through participating banks. The
program is open to both existing and new companies with annual sales of less
than $5 million. The BFA recognizes
that banks often face higher risks with loans to emerging or thinly capitalized
companies, so it has created CAP, a program that gives banks incentives to issue
small business loans by establishing a loan-loss reserve, known as the CAP Fund.
Businesses interested in obtaining a loan through CAP must apply through a
participating bank. CAP is open to all
New Hampshire banks. Please contact the BFA at (603) 2415-0190 or consult the
BFA Web Site for a list of participating banks in your area. Eligibility ·
The
business must have annual revenues of less than $5 million. ·
The total
loan enrollment may not exceed$100,000. ·
New
businesses must contribute 20% cash equity into start-up costs. How to Apply ·
The
business applies for a CAP loan through a participating bank. A list of
participating financial institutions is available on the BFA Web Site. ·
All
decisions regarding eligibility of the business are made by the lending
institution. ·
At
closing, the business, the bank, and the BFA make a non-refundable contribution
to the CAP Fund. Fees ·
Upon
determination by the lender, the business will be required to deposit 2.25% or
3% of the eligible portion of the loan amount to the CAP Fund. ·
The
lender will be required to deposit between .75% and 1% of the total loan amount
into the CAP Fund. ·
The BFA
will contribute either 1.5 or 2.5 times the combined financial institution and
business contribution, not to exceed 10% of the total loan amount to the CAP
Fund.
New
Hampshire |
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