Areas Served: City of Providence
The Providence Business Revolving Loan Fund provides funding to help entrepreneurs in Providence, Rhode Island.
Target loan size is $125,000; larger loans may be approved based on the program criteria and value to the local economy.
Read on to learn more about eligibility, terms and fees for revolving loans.
Eligibility Requirements – Revolving loans are available to individual owners, tenants, partnerships or corporations – Your business must be located in Providence – You must have applied for and been denied funding by at least 2 conventional lenders – You must create 1 Full Time Equivalent (FTE) employee for every $35,000 you borrow – Loan funds can be used for commercial rehabilitation, labor and/or materials, machinery/equipment, property acquisition, and/or working capital – Loan funds cannot be applied to sweat equity (with the exception of bona fide, licensed owner/contractors performing work on their own properties) or to any expenses incurred prior to the date the loan was approved – Loans must meet at least one National Community Development objective Community Development Block Grant objective.
Loan Terms – 0%-6% interest rate – Loans in excess of $60,000 require a match of $1 privately funded dollar for every Revolving Loan Fund dollar borrowed – The lease term must be greater than, or equal to, the term of the loan; the loan term cannot exceed 10 years.
– Borrowers must comply with Davis-Bacon wage provisions – Borrowers must participate in the City’s First Source/Providence Connects hiring program Fees – Application Fee and Credit Report Fee ($50) – Loan Origination Fee (1% of loan, due at closing) – Processing fee ($5.50 per month over term of loan) – Legal and Filing Fees ($350 plus any Uniform Commercial Code filings) – Security interest on all assets, personal and corporate guarantees, plus other collateral sufficient to secure loan
Contact InformationProvidence Economic Development Partnership
Address: 444 Westminster Street
City: Providence
State: Rhode Island
Website:
http://www.providenceri.com/efile/2427
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