Business Finance

The Local Development District’s Loan Programs help businesses maintain and increase their markets and create new jobs. Fixed-rate financing, long terms and an ability to bring a business together with additional sources of financing combined with the expertise of the LDD staffs will add to the affordability of a business expansion or start-up. Eligible businesses can apply for low interest financing if they are unable to finance projects with conventional loans. Specific terms and conditions vary according to funding source.

Any individual who owns 20% or more of the eligible applicant will be required to personally guarantee the loan.

Loans are available for businesses enterprises in:

agriculture
agricultural production
manufacturing
research and development
hospitality (including lodging facilities and restaurants)
defense conversion
recycling enterprise
computer-related services
construction (not private homes)
child day-care
tourism
wholesale/distribution
service related industries

Eligible activities include:

purchase and development of land
building acquisition
construction and/or rehabilitation
machinery and equipment acquisition, including delivery and installation
and working capital (limited to inventory and new personnel costs)
special programs also are available for businesses engaged in international trade

Ineligible Activities:

refinancing existing debt
related party transactions
real estate speculation

General Conditions:

one full time equivalent job must be created for every $25,000 borrowed
dollar-for-dollar private sector match is required
loans must be collateralized at the highest position available
matching sources must have same or larger term
applicant and principals must not be delinquent or in default on any existing private or public debt and must be current in payment of all taxes
project may not commence until a complete application is received