Horizon Introduces Two New Loan Programs
Andrew Young,
Vice President Horizon
Horizon Certified Development Company has teamed up with Community Reinvestment Fund, USA to offer two new loan programs that complement the SBA 504 financing program. The programs can provide financing for small business borrowers who are good credit risks, but simply don't qualify for SBA 504 loans due to technical reasons.
For example, a borrower may have used up its available SBA financing allocation, or a borrower may need to refinance existing debt. The two new loan products, called Business Loans and New Market Tax Credit Business Loans, may solve those problems. The loans can be structured like the 504 program and must be used for owner occupied real estate projects. The Business Loans program offers a 20 year fixed rate loan at market rates for a maximum of $1 million. The New Market Tax Credits Program is aimed at stimulating private investment in low-income communities. CRF USA has received more than $400 million in new market tax credits from the Treasury Department's Community Development Financial Institutions Fund.
Both programs have similar underwriting criteria, however, new market tax credit loans offer better pricing for borrowers with businesses located in economically disadvantaged communities. The New Markets Tax Credit program is a 25 year term with the below market rates set for the first seven years, then readjusting at a near market rate for the remaining 18 years. The maximum loan under the New Market Tax Credit program is $2.5 million.
The Business Loan Program is available throughout the HCDC market area. But the New Market Tax Credit Program is limited to certain low interest census tracts. We’ve included a map that shows eligible census tracts in Hamilton County Ohio. You can always call us for more information at 513-631-8292.
Click here to view map of eligible census tracts
