Business Finance

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.

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