Areas Served: City of New Bedford Massachussets
The New Bedford Economic Development Council, Inc. (NBEDC) established this assistance program with funds provided by the City of New Bedford made available under the Community Development Block Grant entitlement.
The Micro-Enterprise Loan Program is defined by the Department of Housing and Urban Development (HUD) in regulation 24 CFR 570.201(0) and is intended to assist businesses having 5 employees or less one or more whom owns the business at the time of application.
Under the Micro-Enterprise Loan Program, NBEDC provides loans, which can be used for working capital; equipment, machinery, furnishings and other fixed assets; and to assist in the acquisition of land and buildings.
A micro-enterprise business must demonstrate the ability to meet one of the following national objectives of CDBG funding.
1. Low/Moderate Income Area Benefit The micro-enterprise assisted must provide services to a residential area that has a sufficiently high percentage of Low/Moderate Income persons.
2. Low/Moderate Income Limited Clientele The micro-enterprise assistance is provided to a low/moderate income person(s) who own or are developing a micro-enterprise.
In the instance that the micro-enterprise is owned by more that 1 person the microenterprise must demonstrate that 51% of the owners are low/moderate income persons.
INTEREST RATE: Interest rates will be determined by the Loan Committee and is based on the Prime Rate.
FEES: NBEDC charges a $75 application fee upon application submittal (non- refundable) for any loan under $10,000. All loans over $10,000 are charged a $275 application fee.
NBEDC charges a $100 administration fee at closing for all loans under $10,000 and 1% for all loans over $10,000. ELIGIBLE BUSINESSES: – Manufacturing – Retail – Wholesale – Service – Other Commercial/Industrial LOAN COLLATERAL: All appropriate business assets and personal assets as NBEDC deems necessary to sufficiently secure the loan.
All loans will be personally guaranteed by all principals with 20% or more ownership.
MANAGEMENT CAPACITY: The small business has to demonstrate management capacity and/or willingness to accept close consultation and assistance throughout the life of the loan, if necessary.
FINANCING GAP: The small business has to demonstrate the lack of adequate capital or loan funds to fully finance the business’ needs.
GEOGRAPHIC COVERAGE: This program provides assistance to small businesses located within the City of New Bedford.
Contact InformationNew Bedford Economic Development Council, Inc
Address: 1213 Purchase St
City: New Bedford
State: Massachusetts
Website:
http://nbedc.org/services/loan-program/
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