THE GROWTH INITIATIVE LOAN PROGRAM
The Growth Initiative Loan Program (GILP) provides a financing tool for small businesses in need of funding for a specific project, research and development of an idea or concept, marketing of an idea or concept, or to accelerate the business to the next level of economic success. The GILP provides a company the ability to take advantage of business opportunities when presented in order to achieve productive results. The loan proceeds may be utilized in order to purchase a fixed asset or to meet working capital needs.
Target Market:
All small businesses (25 employees or less) located in Butler County, Pennsylvania.
Eligible Borrower:
An eligible business shall be defined as any proprietorship, partnership, or, corporation engaged in manufacturing, wholesaling, distribution, retailing or servicing of a product, service, or commodity for a profit.
Use of Funds:
- Provide equity contribution required by other sources of funding.
- Building conversion, repair, development, acquisition, and / or renovation.
- Equipment, leasehold improvements, machinery, or supplies.
- Pollution control.
- Efficiency procedures.
- Start – up cost.
- Working capital.
- Business opportunity costs.
- Cost of permitting and / or licensing.
Loan Amounts:
A maximum of $25,000 or 100% of the total eligible project cost, whichever is less.
Terms and Conditions:
Maximum loan terms based on security:
- Real estate secured loan – 60 months.
- Machinery / equipment secured loan – 36 months.
- Inventory / accounts receivable secured loan – 12 months.
Loan Rates:
Loan rates are fixed for the term of note. Rates are based on collateral utilized as security. The index rate is based on the Prime Interest Rate as published in the Wall Street Journal.
- Real estate secured loan – index rate plus 1%.
- Machinery / equipment secured loan – index rate plus 2%.
- Inventory / Accounts Receivable secured loan – index rate plus 3%.
Loan Fees:
| Loan Application Fee (Non Refundable) | $250.00 |
| Loan Commitment Fee | 1% of the loan amount |
| Annual Servicing Fee | ½% of the outstanding loan amount |
General Conditions:
Borrowers permitted to maintain one GILP in any one 60 month period of time, start-up businesses may be required to supply a business plan, existing businesses to provide historical and projected financial information. Other fees associated with the loan including, but not limited to: recording, legal counsel, credit reference, property report, UCC-1 searches, flood zone report fees are the responsibility of the borrower. The Community Development Corporation of Butler County is an equal opportunity provider, employer, and lender.
For more information, contact:
The Community Development Corporation of Butler County, Inc. at (724) 283-1961 or 1-800-283-0021.
Mailing address: 112 Woody Drive, Butler, PA 16001. E-mail address: butlercdc@butlercountycdc.com
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