Enterprise Loan Fund

Purpose:

The Enterprise Loan Fund (ELF) is a flexible finance program designed to assist micro-enterprise businesses. Consideration is given to existing, emerging or start-up businesses located in Belknap County, whether they are manufacturing, wholesale, agri-business, tourism, retail or service.
This program was originally funded with a Rural Business Enterprise Grant.

Economic Impact:

Priority will be given to projects that create jobs or enhance the employment opportunities of low and moderate income workers.

Eligible Uses:

• Purchase of land, buildings, machinery, equipment, inventory, or a franchise
• Repairs, modernization, or expansion
• Working capital
• Refinance of business debt if business cash flow and financial strength would be improved
• Feasibility studies
• Reasonable fees and charge
• Borrower Requirements- The borrower must:
• Qualify as a micro-enterprise (a business with no more than 5 employees including the owner).
• Own or develop a business based in Belknap County.
• Be unable to obtain sufficient funding from banks or other conventional financing sources.

Credit Requirements - A borrower must demonstrate:

• The loan benefits low-to-moderate income employees
• An acceptable credit history
• The business has sufficient cash flow to repay all obligations
• There is reasonable security or collateral

Security

The ELF loan must be adequately secured to ensure repayment. Collateral may include real estate, machinery and equipment, inventory and accounts receivable, lease assignments, life insurance assignments and personal guarantees. BCEDC’s security interest may be subordinate to private lenders in order to assist borrower in securing bank financing.

Size of Loans Available: Up to $25,000

Interest Rate: Prime Rate at closing plus 3%

Application Fee: $75 - with submission of application

Other Fees: Legal and closing costs.

Terms: Up to five years

Instructions on Applying

1. Download application form (4 pages)
2. Personal Financial Statement (3 pages)
3. Complete, sign, enclose application fee and mail to the BCEDC at 2 Airport Road, Gilford, NH 03249

Downloads:

ELF Application Personal Financial Statement Other terms and restrictions may apply. For complete details, contact the BCEDC.

The BCEDC is an Equal Opportunities Lender.