Business Finance Center
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, such as service or retail are also eligible for several NEPA loan programs.
Loan Program Features
- Interest Rate – Attractive Fixed-interest rates currently 1% to 4%
- Working Capital – 3 Years
- Machinery and Equipment – 5-7 Years (new or used)
- Land and Building (Acquistion, Renovation, and Construction) – 15 Years
The NEPA / SBF Loan Program is targeted to businesses with less than 100 full-time employees. However, several NEPA programs allow consideration to larger-sized employers.
- 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 – The borrower must pay all legal fees and any other closing costs.
- Timing – Applications are reviewed on a monthly basis
- Employment – With the exception of the Microloan and Agriculture programs, one job must be created or retained three years from the closing date for every $25,000 in loan proceeds.