SEDF Loan Information
Loan Uses
Asset to be financed: | Amortization schedule: |
Land | 20 years |
Buildings | 20 years |
Permanent Fixtures | 20 years |
Working Capital | 7 years |
Inventory | 5 years |
Equipment/Machinery | 15 years (or the life of the equipment, whichever is less) 7 years (for Solid Waste Loans to recycling and garbage hauling businesses) |
Lending Parameters
Minimum loan amount: | $20,000 |
Maximum loan amount: | $250,000 |
Loan Balloon: | 5 years 7 years (for Solid Waste Loans to recycling and garbage hauling businesses) |
Origination Fee: | 1.5% of the SEDF loan amount |
Lending partner (bank, other financing): | Required |
Collateral positioning: | Loans must be made on a parity basis |
Interest rate: | Fixed for the life of the loan; 4.75% to 9% depending on the risk and location of the project; 3.25% to 3.5% for Solid Waste Loans to recycling and garbage hauling businesses |
Primary consideration given to projects that:
- Are for-profit organizations
- Are located within SEDF's service area
- Provide opportunities to the unemployed, underemployed, minorities, low-income, and socially or economically disadvantaged, among others
- Do not have other credit available on ample terms to complete the project
- Have adequate owner's equity investment committed to the proposed project
- Have an amount of private participation involved with the project that meets SEDF's requirements
- Would not be able to proceed without the assistance of the SEDF loan