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.
- 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
- 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