Areas Served: Chaffee, Custer, Fremont, Lake, Park and Teller Counties, Colorado
The Upper Arkansas Area Development Corporation (UAADC) is a non-profit organization created by the Upper Arkansas Area Council of Governments to provide financing assistance to new and expanding for-profit businesses in Chaffee, Custer, Fremont, Lake, Park and Teller Counties.
Each county is represented on a six member Board of Directors.
UAADC financing programs are not intended to compete with or replace private sector financing.
A genuine effort to secure private sector financing is required of all borrowers.
Two Finance Programs Are Available to Help You Achieve Your Goals The “GAP” loan program is designed to assist a borrower obtaining a primary business loan but needs to fill a financing “gap” to complete the overall financing needs of the business.
The borrower obtains a loan commitment from the primary lender first and then seeks a UAADC GAP loan to fill the remaining needs.
A successful financing structure includes a greater-than-half loan with a primary lender and a gap-filling loan with the UAADC.
“GAP” financing literally fills a “gap” remaining after the primary lender determines it cannot lend all necessary financing.
Typical “GAP” loans provide about one-third, but less than one-half of the total financing needs of the business.
“GAP” financing provides flexible collateral and loan term with a current-prime interest rate.
The “Direct” loan program is designed for a borrower having exhausted typical sources of financing and needs a loan amount generally under $30,000.
“GAP” Financing Loan Requirements – One full-time job created per $20,000 loaned.
– Owner cash injection of 10% of the total project.
– Restaurant projects require 20% owner injection.
– Minimum UAADC “GAP” loan is $5,000. – Maximum UAADC “GAP” loan is $125,000. – Loan interest rate is current prime.
– Loan term adjusted to needs of borrower.
– Flexible collateral requirements.
– Personal guarantee is required.
– Fees: $50 application fee; 2% origination fee; $150 closing coSt. – Refinancing is not a function of UAADC.
“Direct” Loan Requirements – Borrower is unable to access typical financing by not meeting bank-lending policies – Maximum loan is generally $30,000 – Minimum loan is $5,000 – Owner cash injection of 10% of the total project – Restaurant projects require 20% owner injection – Interest rate above prime and based on risk – Loan term varies but usually under 5 years – Flexible collateral requirements – Personal guarantee required – Fees: $50 application fee; 2% origination fee; $150 closing cost – Refinancing is not a function of UAADC
Contact InformationUpper Arkansas Area Council of Government
Address: 3224-A Independence Road
City: Canon City
State: Colorado
Website:
http://www.uaacog.com/programs/businessloanfund.html
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