Tom Pellegrini |
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Loan Programs
Eligible Business
Generally, NEPA can fund manufacturers, industrial operations, research and development, computer related, hospitality-related (restaurants, hotels/motels, lodging facilities) destination sites including but not limited to historic heritage, cultural, sporting, amusement, nature, outdoor recreational for retail venue, daycare facilities, recyclers, construction enterprises, agricultural related enterprise, including production, agriculture, agribusiness, sale of farm commodities at wholesale , farmers' market, energy related activities impacting production agriculture or agribusiness. Other business sectors may be eligible as well.LOAN PROGRAM FEATURES
- Fixed-below prime interest rates - currently - 4%.
Loan Terms - Working Capital - 3 Years
- Machinery and Equipment - 5-7 Years
- Land and Building (Acquistion, Renovation, and Construction) - 15 Years
The NEPA Loan Programs are targeted to businesses with less than 100 full-time employees. However, some NEPA programs allow consideration to larger-sized employers.
Program Requirements
- Collateral - Collateral and personal guarantees are required, as appropriate, for the particular loan request. NEPA collateral for each loan is reviewed on a case by case basis. NEPA Loans may be subordinate to commercial lenders.
- Insurance - Hazard insurance must equal the value of the assets pledged. Life insurance assignments are generally required on owners or key management personnel.
- Fees - A processing fee of one percent (1%) of loan amount is due upon acceptance of the commitment letter. The borrower must pay all legal fees and any other closing costs.
- Timing - Applications reviewed on a monthly basis
- Employment - With the exception of the Microloan programs and Agriculture, one job must be created or retained for every $25,000 in loan proceeds.