| Small
Business First Fund |
| The Chester County
Economic Development Council (CCEDC) will be pleased to assist you in
an application for a SBFF (Small Business First Fund) Loan. The CCEDC is the designated provider in Chester County to make this
low interest financing program available to eligible businesses. |
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| Eligible Applicants |
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Manufacturing & Industrial
Enterprises |
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Export-related Service Ventures |
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International Export-related Mercantile Ventures |
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Advanced Technology and Computer-related Services
and Mercantile Ventures |
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Hotels, Motels or other Lodging Facilities
(Existing only) |
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Restaurants or Food Service operations (Existing
only) |
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Environmental Projects |
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Recycling Ventures |
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Defense Conversion |
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Agriculture and Agribusiness |
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Tourism |
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| Eligible Uses |
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Acquire land and buildings |
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Construct and renovate buildings |
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Acquire machinery & equipment |
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Acquire livestock (agriculture) |
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Working capital |
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| Loan Amount |
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$200,000 or 50% of the total project cost,
whichever is less |
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| Terms |
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Term of the Loan matches life of asset:
Up to 15 years for land and building
Up to 10 years for machinery and equipment
Up to 3 years for working capital |
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| Rate |
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Contact us for the most current rate. |
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Agricultural producers located in
Agricultural Security Areas are eligible for a 1% rate
reduction. |
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| Private Financing |
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Private sector match required Term must be
the same as SBFF loan or longer. Line of credit cannot be used
as a private sector match. |
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Collateral |
| Loans
are to be secured by lien positions on collateral at the highest
level of priority which can accommodate the borrower's ability
to raise sufficient debt and equity capital. Personal guarantees
from principals and spouses (20% or more ownership) of the
company will be required except under unusual circumstances.
Notes payable to officers and investors
(20% or more ownership) must be subordinated during the term
of the loan. Notes receivable from officers and shareholders
must be repaid prior to SBFF loan disbursement. |
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| Job Creation Criteria |
Except for loans to
agricultural producers, one full-time job must be demonstrated
to be created or preserved within three years from completion of
the project for each $25,000 loaned from SBF.
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| Timing |
| Loan review and approval approximately
6-8 weeks after a complete application is submitted to CCEDC. |
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| General Application
Requirements |
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Must have 100 or less full-time equivalent
employees. |
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| CCEDC SBFF Loan Fees |
Application Fee due with application
and completed loan package: 1% of the SBFF loan amount (minimum
$1,000) NON-REFUNDABLE
Commitment Fee due with commitment letter:
1.5% of the SBFF loan amount (minimum $1,000)
Legal Fee due at settlement: Average of $1,500
(Actual fees charged will be based upon complexity of project)
Annual Administrative Fee (first year due at settlement): $200
Requests for substantial changes to project following the submission
of an application (i.e. change in collateral position) will
result in a fee of $300 each. |
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| Application Procedure |
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Applicant meets with staff or discusses via
telephone the proposed project and establishes potential eligibility. |
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Applicant receives and completes application
and forms. |
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Complete application is submitted to CCEDC staff
in accordance with application deadlines. Staff reviews application
and prepares it for committee review. |
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Loan application is reviewed by CCEDC Loan Review
Committee. We recommend that a representative of the company
attend the meeting to answer any questions which may arise.
The Committee makes a recommendation to CCEDC Board of Directors. |
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Upon approval by the CCEDC Board of Directors,
the loan application is sent to the state for review. |
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CCEDC advises applicant of state action and coordinates
loan approval and disbursement process. |
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| NOTE: Commencement
of project prior to State approval will cause your project to
be INELIGIBLE for SBFF financing unless a "Non-Prejudicial"
letter is requested by the Applicant. |
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| Application Deadline |
| Applications are
accepted on a rolling basis. |
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CCEDC
SBFF Loan Application Contents
NOTE: Incomplete applications will not
be processed by CCEDC staff. All items listed below must be
submitted before the loan will be processed.
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Financial statements as follows:
Applicant, parent company and any affiliates for the last 3
years of operation prepared by an independent certified public
account according to GAAP. One copy must be in the accountant's
bound folder and include the accountant's report, and all footnotes.
Reviewed financial statements are preferred.
If most recent statement is 6 months or older, the most current
internal company statements must also be submitted.
Financial statements of any individual(s) owning 20% or more
of the company. Statements should not be more than 6 months
old.
Personal tax returns of principals for the last 3 years.
If project is for a new company, 3-year pro-forma balance sheets
and projected statements of income and cash flow prepared by
an independent CPA. Projections must include footnotes disclosing
the methods of accounting, proposed sources of financing (both
debt & equity), interest rates and terms of proposed financing,
and all significant assumptions regarding projected quantities,
prices, customers and markets, labor rates, pension and fringe
benefits and administrative and other operating expenses. |
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Letter of commitment from any other financing
sources. |
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Documentation of Total Project Cost, including:
a. Agreement of Sale
b. MAI Appraisal (existing building only) and Appraisal Brief
c. Bids or estimates for construction, acquisitions, etc.
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Loan Application Forms |
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Application fee payable to Chester County
Economic Development Council. |
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For more information, contact Chuck Evans,
Director of Loan Programs, at 610.458.5700 x242 or
cevans@cceconomicdevelopment.com
For agricultural projects, please contact Sue Milshaw, Ag Loan
Coordinator, at 610.458.5700 x239 or
smilshaw@cceconomicdevelopment.com
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