Are you preparing to finance a project to expand your business?
Look no further for option than to MVMC new member Valley Economic Development Partners.
Since 1978, the nonprofit has helped local small businesses with loans.
“We offer and facilitate a variety of loan programs to support small businesses with specialized flexible lending solutions.,” said Teresa Miller, executive director.
Think of it as bridge or gap financing packages.
There are a number of options, including larger SBA-partnered programs, where Valley Partners mitigates risk to the bank and client by funding a portion of the project.
“We take a second position on collateral behind the bank,” Miller said.
If a business applies for a loan at a bank, the bank can say the business must have 20 percent equity for a $5 million project.
Valley Partners enters, offering funding for 40 percent of the project, while the bank offers 50 percent. That will leave the business portion to 10 percent.
There are smaller loan programs, where Valley Partners is able to fund without bank participation as well.
A long-time popular option which will likely see a resurgence Miller said is a loan fund from the Ohio Department of Development (ODOD) called the Regional 166. It is targeted for the manufacturing industry.
While interest rates are on the rise, Regional 166 loans will most likely remain around 3 to 4 percent.
This is great for expansions, equipment purchases, location moves or purchasing a new building, Miller said. If a company wants to finance on their own, Valley Partners can utilize the Regional 166 loan for 75 percent of the project if the business funds the remaining 25 percent.
“This is a perfect loan fund program for fixed assets a manufacturing company might be looking for.”
For more information or to being the application process, visit www.valleyedp.com.
“We’re here to help and partner with their banks to make the best loan package that’s possible for small businesses in the Valley.”