SBA Intermediary Lending Program (SBA-ILP)
Funding Access for Growing Small Businesses
Small businesses in Greater Cincinnati have an opportunity to access much needed capital. HCDC is one of 37 lenders nationwide to be selected by the U.S. Small Business Administration (SBA) to administer the second round of loans under a new pilot program designed to help small businesses start and expand. The SBA’s Intermediary Lending Pilot Program (SBA-ILP) allows HCDC to make loans up to $200,000 to small businesses that may not be able to obtain conventional financing.
How does it work?
When a small business has trouble bridging the gap in a commercial loan, HCDC assesses eligibility according to SBA guidelines. Determination of the loan is made locally by HCDC – streamlining the approval process. A start-up business (less than 24 months old) may apply for financing up to $50,000 and an existing business (older than 24 months) may apply for up to $200,000.
Who is eligible for an SBA-ILP Loan?
HCDC will consider eligible those for-profit businesses that are organized as a sole proprietorship, partnership, limited liability company, corporation and sub chapter s-corporation, and are not listed on the types of businesses deemed not eligible per SBA-ILP guidelines or SBA regulations.
How can the SBA-ILP loan be used?
The proceeds of a loan from the SBA-ILP may be used to acquire fixed assets, including the purchase of/construction on/or renovation of real estate (except for real estate acquired and held primarily for sale, lease, or investment). An SBA-ILP Loan can be made for machinery and equipment, furniture and fixtures, and term working capital (including inventory receivables, materials and supplies). No lines of credit are eligible.
All loans shall be secured with appropriate collateral.
All loans shall be guaranteed by each owner of the eligible small business concern (ESBC), regardless of ownership percentage. Secured guaranties may also be required where HCDC deems appropriate.
Call one of our expert loan officers at 513-631-8292 for more information.
HCDC Experts Make the Process Simple
HCDC will handle all the application paperwork, processing and internal review/closing. A $500.00 non-refundable application fee is required at the time of submission to HCDC and a 1.0% processing fee will be assessed at closing. Additional closing fees may be necessary depending on the collateral used to support the project.
Currently, HCDC is a top SBA loan provider and lender in more than 1,200 projects, generating more than 40,000 jobs. HCDC’s loan programs provide businesses the opportunity to grow and expand.
HCDC’s business loan programs can serve clients in the Cincinnati Metro area, and the entire states of Kentucky and Ohio.