Total Pool - $250,000.00
The loans made pursuant to this program will be available to existing businesses that are located in the greater Lynchburg area which area shall include the Counties of Amherst, Appomattox, Bedford, and Campbell and the Cities of Lynchburg and Bedford, Virginia. The loans will be made to businesses that have the potential to create new jobs in the area, thereby enhancing the local economy. The eligible applicants will be existing businesses excluding, however, motels/hotels, restaurants, beauty salons and barber shops. In limited situations start-up operations will be considered on the merits of the project and available collateral.
Loans will be funded up to a maximum of $150,000.00 for any one loan client, with a minimum loan amount of $25,000.00 for any one client. Real estate loans will be amortized for up to 15 years, with a 5-year balloon at which time the entire principal and interest shall be due and payable. The parties may consider refinancing existing loans. Equipment loans will be considered over the life of the equipment with a maximum of 7 seven years. Working capital loans will be amortized over a period not to exceed 12 months. All interest rates applied will be at a fixed rate of prime + 1% - 2% interest with a floor of 5%. A non-refundable application fee of $150 will be charged with the receipt of the loan application. Additionally, all loans approved will be charged a 1% origination fee at closing. The loan origination fee will be collected at closing. In all cases, any loan closing fees and other legal fees associated with the loan shall be paid by the borrower.
All loans will be secured. Collateral will normally be tied to the use of the loan; however, an abundance of collateral may be necessary in order to approve the loan. Therefore, the type of collateral assigned may range from any type of business asset (equipment, furnishings, fixtures, receivables and inventory) to a lien on business real estate. When necessary, the business owners may be asked to provide additional collateral, which may be personal in nature. Additionally, personal guarantees will be required on all loans.