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Guarantee of
Loans to Small Businesses
The
Business Finance Authority recognizes the vital role small businesses play in
our economy and is working hand-in-hand with the U.S. Small Business
Administration to meet the financial needs of small New Hampshire companies. The
SBA is an important financing tool for small businesses, but some companies
borrowing needs exceed the SBA's financing limits.
Businesses
which apply for a loan guarantee through the SBA's 7a program may extend their
borrowing potential through the BFA. Under the program, small businesses are
eligible for up to $750,000 in SBA loan guarantees. Through the BFA, companies
may be able to receive another $750,000, for a total of $1.5 million in
guarantees. Up to $500,000 of the loan may be used for working capital.
For
additional information on how your company can benefit from BFA/SBA teamwork,
please contact your local bank or call the Business Finance Authority at (603)
415-0190.
Eligibility
·
The business must meet the requirements
established by the SBA's 7a program.
·
The BFA guarantee amount cannot exceed
90% of the original principal amount of the loan, less the SBA eligible amount.
·
The combined BFA/SBA guarantee amount
cannot exceed $1,500,000.
·
The loan amount used to finance working
capital cannot exceed $500,000.
How
to Apply
·
The bank and the borrower must submit
an application to the SBA under the 7a program. The BFA requires certification
that the application has been approved or accepted for review by the SBA.
·
The participating financial
institution, not the borrower, must submit a copy of the completed SBA
application to the BFA.
·
All guarantees must receive final
approval from the BFA and authorization from the Governor and Council of the
State of New Hampshire.
Fees
Current Activity (June 30, 2007)
New
Hampshire |
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