Areas Served: Atlantic, Cape, Cumberland and Salem counties
The South Jersey Economic Development District offers small businesses the opportunity to borrow money through the FmHA Intermediary Re-lending Program.
Goals and Objectives The goal of the program is to provide financing to for-profit manufacturing, commercial, retail or service-related businesses.
FmHA IRP loans must be innovative in providing services and/or products for the public.
Overview FmHA loans can be made for up to 75 percent of the total eligible project cost with a maximum loan amount of $150,000. Loan applications must demonstrate sufficient equity participation in the project and the business, and sufficient cash flow to support all debt service.
All loans will be secured by lien positions on collateral at the highest level of priority.
The loan must be necessary to complete the financing package and may not supplant funding that is otherwise available expeditiously from other sources at commercially reasonable terms.
There is a non-refundable $250 application and packaging fee at time of filing and a 1 percent origination fee payable at closing, associated with each loan.
The borrower is also responsible for all closing costs and fees associated with servicing the loan.
Terms Interest rates will be below prime and will be set by SJEDD on a project-by-project basis.
Terms will depend upon the proposed use of loan funds and the needs of the borrower and other participants in the loan package.
Generally, the maximum length of loans are dependent upon the nature of the project being financed.
Eligibility The loan must be used for projects located in communities with a population of less than 25,000 and use labor of low-income persons, farm families, and displaced farm families needing additional income to supplement their farming operations.
Loans may be used for the purchase and/or construction of fixed assets, i.e. building renovation, machinery and equipment.
Contact InformationSouth Jersey Economic Development District
Address: 226 North High Street, Suite A
City: Millville
State: New Jersey
Website:
http://www.sjedd.com/sjedd/relending-program.asp
Leave a Reply