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USEDA
United States Economic Development Administration Business Loan Guarantee
| Loan Amount |
Loan guarantee up to 80% (typically $750,000 to $10,000,000 |
| Use of Funds |
Land and building acquisition
Land Improvements
Building construction and renovation
Purchase of machinery and equipment
Working capital |
| Term of Loan |
Working capital cannot exceed 5 years, 10 years for machinery and equipment and 20 years for real estate |
| Rate of Interest |
Negotiated |
| % of Financing Available |
Up to 80% |
| Down Payment (Equity) |
15% for existing businesses, 25% for new businesses |
| Typical Structure |
Variable |
| How Long Does it Take |
90-150 days |
| Collateral |
1st Mortgage |
| Personal Guarantees |
Yes |
| Eligible Businesses |
Manufacturing businesses and some commercial enterprises |
| Ineligible Businesses |
Retail, service |
| Job Creation Criteria |
$20,000 per job |
| Incentives |
Long term fixed rate financing |
For more information on this program, contact BLADC.
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