Loan Programs
Micro-Enterprise Assistance Program
The
Oneida County Micro-Enterprise Loan Program is available to assist small businesses
and start up companies in Oneida County that create new job opportunities
for low and moderate income persons.
Administered
by Mohawk Valley EDGE, the program is designed to provide low interest loans
and gap financing for small businesses and new business start-ups with five
or fewer employees.
Funding
for the Micro-Enterprise Assistance Program is through a grant to Oneida County
from the New York State Small Cities Community Development Program. These
funds are in addition to the EDGE Job Development Loan Program.
Mohawk
Valley EDGE will work closely with the SUNY Small Business Development Center
(SBDC), to help prospective applicants complete business plans and provide
technical assistance that is needed to help small businesses.
Loans
Up
to 40% of the total project cost, with a minimum loan of $2,500 and a maximum
loan of $25,000.
Minimum of 10% cash equity contribution by the borrower toward total project
cost required.
Bank financing required for at least 50% of the total project cost.
Public funds from other programs can be used for the balance of the project.
Program Requirements
The
assistance must result in either the creation or retention of jobs that are
available to low or moderate income persons as defined by New York State and
U.S. Department of Housing & Urban Development Small Cities Program guidelines.
Loans approved will be the minimum amount necessary to support the project.
Eligibility
Project must be located in the County of Oneida.
Businesses engaged in manufacturing, industrial, wholesale, technology, service
(non-professional) and non-retail commercial/ service.
Loans can be used for purchase of and improvements to fixed assets (such as
real estate, buildings, machinery and equipment) and working capital.
Use of funds must comply with the rules and regulations governing the New
York State Small Cities Program.
Completed assessment of the need for further technical assistance through
a review with Mohawk Valley EDGE & SUNY Small Business Development Center.
Refinancing of existing loans is not eligible, lines of credit and bridge
loans are also not eligible.
Loan Terms & Rates
4% interest rate (fixed for the life of the loan).
Real Estate – up to 10 years.
Machinery and equipment – up to 7 years.
Working capital financing – up to 5 years.
Collateral
Real
estate loans are generally secured by a second mortgage on the property being
financed for loans in excess of $15,000.
Security interest in machinery & equipment, accounts/receivable, and inventory,
subordinate only to a bank.
Personal guarantees are required.
Application Process
A complete applicant profile, which includes all necessary attachments including
an approved business plan. A project review meeting with EDGE and SUNY SBDC
to determine eligibility and identify need for technical assistance.
Applications are completed by the borrower.
All projects must be approved by EDGE Loan Committee, which meets monthly.
Average loan processing time is 45 days after receipt of complete application
by EDGE.
Applications must be accompanied by letters of commitment for all other elements
of project financing.
Borrower is responsible for all closing costs.
For a loan application, click here to contact Mohawk Valley EDGE.
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