Emergency Loan Program
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The purpose of the Emergency Loan Program is for the Authority to make short-term loans to eligible institutions at competitive interest rates during periods of declared emergency. Eligible projects include construction and renovation, facility acquisition, refinancing of qualified outstanding debt, the purchase of equipment, operations expenses, and financing costs.
Please read through the general loan terms below. To apply for the Emergency Loan Program Application click here.
General Loan Terms
- Minimum Loan Size: $5,000
- Maximum Loan Size: $500,000
- Eligible borrowers and projects include:
- Any eligible facility identified in the Act that has no line of credit or has exhausted its line of credit and has less than 50 days cash on hand.
- Loans will be given on a first approved, first served basis for those who qualify for assistance under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).
- Maximum loan term of:
- Initial term of 12 months with the first 6 months deferred,
- Interest rates will be:
- For the first 3 months of the loan – 0%
- After the first 3 months - the 5-Year US Treasury Note plus 15 basis points or 2.00% whichever is greater.
- The Borrower is responsible for all associated loan expenses.
- The Authority will not impose an origination fee.
- Security may include a pledge of the equipment or real property being financed or reimbursed with the loan proceeds. If the prudent loan-to-value ratio cannot be met, other properties may be considered for collateral. Pledges of receivables may also be considered acceptable collateral, including pledges of funds the borrower expects to receive under the CARES Act.
- Loans may be approved if the borrower has demonstrated that the declared emergency has significantly impacted the Borrower and staff determines that there is reasonable expectation of loan repayment by the Borrower.
- The borrower demonstrated that it meets the criteria for grants or loans under the CARES Act.