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