Neighborhood Economic Development Revolving Loan Fund

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Terms and Conditions
WHAT: A revolving loan fund designed to encourage growth and stimulate small and mid-sized industries and businesses resulting in the creation and retention of jobs in the region

WHERE: Applicants located in the following areas are eligible to apply:

Urban League Pool - Applicants located in the area bounded to the North by Wilson/Bloomfield, the South by Homestead Avenue, on the East by the Connecticut’s River and the West by West Hartford Town Line.

Asylum Hill/West End Pool - Applicants located in the area bounded by Homestead Avenue to the North, Boulevard Avenue to the South, Union Station Overpass to the East and the West Hartford Town Line.

Park Street/SAMA - Applicants located in the area bounded by Boulevard Avenue to the North, Vernon/Elliott Street to the South, Connecticut River to the East and West Hartford Town Line to the West.

ELIGIBLE ACTIVITIES: With a primary focus on manufacturing and some retail. The Fund will entertain request for the following:

1. Acquisition and/or renovation of commercial or industrial real estate in which the applicant occupies a significant portion of the available space for the operation of the business.
2. Purchase of machinery and equipment.
3. Short term loans to assist with the acquisition of inventory, the financing of receivables and the overall enhancement of working capital.

TYPES OF LOANS: Direct loans, Participation Loans and Loan Guarantees.

LOAN AMOUNT: Loans vary up to $250,000.

MINIMUM INTEREST RATE: 6 percent fixed rate.

TERM: Typically 3 - 10 years.

The Loan Approval Process
The Loan Approval process consists of several steps designed to obtain necessary information for the diligent review of the project under consideration. Outlined below are the major steps of the process:

1. Completed Application
2. Pre-qualifying Interview
3. Business Plan with completed financial data -2 yrs. Historical data, minimum 24 months/monthly cash flow projections and balance sheet.
4. Personal Financial Statements of Principal(s).get statement form
5. Tax returns for business and principal for the 2 most recent years.
6. Resume of Principals (s).
7. Appraisal and Environmental survey on property to be acquired and/or used for collateral.

Prospective borrowers should return completed application and additional information to The Hartford Economic Development Corporation, 15 Lewis Street, Suite 204, Hartford, CT 06103.
Loan requests are presented, discussed and approved by a Loan Committee. The Committee may vary terms when exceptional circumstances dictate.