• Mar 07, 22
• spencergregory
• Revolving Loan Fund Directory
• 0 comment

The TCAD Loan Program consists of four individual revolving loan funds: the TCAD Loan Fund, Minority and Women Loan Fund, Countywide Revolving Loan Fund, and Town of Dryden Loan Fund. Additional rules and regulations specific to the individual funds are noted where applicable. TCAD will generally assist applicants in determining which loan fund is most appropriate for the business type and needs. Overview The primary objective TCAD’s Loan Program is to create quality employment opportunities and strengthen the tax base by helping entrepreneurs start new businesses, helping existing businesses expand, or attracting businesses to Tompkins County. The Program is targeted to businesses that sell a product or service to customers outside of Tompkins County. However, the Program will consider businesses primarily selling products or services locally if the business can demonstrate it is providing a product or service to a specific geographic market where that product or service is not available and the business can demonstrate that it will create or retain permanent full time jobs Use of Funds Program funds may be used for real estate acquisition, construction, renovation, fixed assets, and permanent working capital. Refinancing of existing debt will only be considered if it is a required element of the overall project financing. Amount of Financing Program loans may be no greater than the minimum amount necessary to effect the business activity. Loan amounts are generally established based on the need for assiaatnce and the amount of Program funds available. However the following minimum and maximum amount shall apply: Minority and Women Loan Fund – maximum loan amount is $50,000. Countywide Revolving Loan Fund – minimum loan amount is $50,000. Town of Dryden Loan Fund – minimum loan amount is $50,000. Loan Structure The typical structure of a loan would have a conventional lender providing a majority of the financing, the applicant contributing a minimum of 10% equity, and TCAD providing the remaining funds necessary. The TCAD Loan Program does not replace conventional financing. Its goal is to participate in situations where the necessary conventional financing and equity is not available or where the cost of the available funds is such that debt service cannot be covered by available cash flow. TCAD funds can be used in conjunction with other government programs. Rates and Terms The Program generally offers fixed rates that are determined based on such factors as the risk of default, the value of collateral and other security, the cash flow requirements of the company, and the prevailing commercial lending rates. Most Program loans will offer a rate below that of the existing prime commercial lending rate. The length of the loan is generally aligned with the useful life of what is being financed. Typically, working capitals loans are for two to three years, while loans on machinery and equipment are for three to seven years. Because the program desires to re-use funds as often as possible, real estate-related loans will usually have a shorter term than conventional financing. In the past, TCAD has developed amortization schedules based on a 20-year term, but this schedule required a 10-year balloon payment. Contact Information Tompkins County Area Development Address: 401 E. State Street/E. MLK Jr. St. City: Ithaca State: New York Website: https://www.tcad.org/