| BUSINESS LOANS AND FINANCING |
Introduction to the Business Finance Center
The NEPA Business Finance Center, through its pool of federal, state and local funds, provides low-interest loans to qualified small businesses. Interest rates range from 2.75% to 5% and are fixed throughout the term of the loan --- regardless of any upward movement in prime lending rates.
Loans through this Program offer repayment terms standard in today's credit markets. Generally, loans are used to supplement other financing by providing up to 40%-50% of the loan amount with maximum of $200,000.
| Borino Tires |
Graphite Technology |
JA Reinehardt |
Hepler Family Farms |
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CLICK HERE to view recent loan closings!
The objective is to provide financing to help business create/retain jobs, attract additional investment from banks and other sources of private and public funding.
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 - current range - 2.75% - 5%.
Loan Terms
- Working Capital - 3 Years
- Machinery and Equipment - 5-7 Years
- Land and Building (Acquistion, Renovation, and Construction) - 15 Years
Employment
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.
- 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 Agricultural Program, one job must be created or retained for every $25,000 in loan proceeds.
NEPA Loan Programs
Use the following links to see the details of each NEPA Loan Program
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