In keeping with the Business Finance Authority's philosophy of helping New Hampshire business grow and prosper, a program has been created to help companies obtain working capital.

 
 

The Working Capital Line of Credit Guarantee (WAG) program allows participating banks or lending institutions to receive a guarantee of up to 75% for a working capital line of credit, not to exceed $2,000,000.00.

The line of credit must be secured with accounts receivable, inventory and/or fixed assets acceptable to the participating bank and the BFA. The borrowing base may not exceed 90% of qualifying accounts receivable and 60% of inventory.

To be eligible for a WAG loan of over $500,000.00 a New Hampshire company must have at least 25 employees. There is no employment requirement for loans of less than $500,000.00.

 

 

ELIGIBILITY

  • The line of credit not guaranteed may not exceed $2,000.000.00
  • The BFA will work with the banks to insure that their policies, practices, and guidelines in regard to line of credit accepted by BFA
  • The borrowing base for the line of credit may not exceed 90% of accounts receivable and 60% of inventory
  • The line of credit must be secured with accounts receivable, inventory and/or fixed assets, acceptable to the lending institution and the BFA


HOW TO APPLY

  • The business applies for a Working Capital Line of Credit through a participating bank
  • All guarantees must receive approval from the BFA and authorization from the Governor and Council of the State of New Hampshire
  • All requests for guarantees are submitted by the bank or financial institution to the BFA


FEES

  • Up to 1% of the loan amount is due at closing
  • A fee of up to 2% of the loan amount is due annually and is paid in arrears

    BFA GUARANTEE REQUEST               APPLICATION FEE

$0 - 200,000                                         $250
$200,001 - 1,000,000                            $400
$1,000,001 - 2,000,000                         $600