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Working Capital Loan Program

Summary

The Working Capital Loan Program funded with Federal Economic Development Administration Title IX funds is designed to assist small-medium businesses who are creating or retaining jobs and looking to expand in the City of Cleveland. The Program helps companies that need additional working capital beyond their traditional lines of credit by providing low interest loans. City Assistance is designed to bridge the gap and help the company purchase the inventory and raw materials needed to fulfill orders.

Eligibility

Manufacturing technology related commercial, service, green/sustainable industry or a grocery store

Max Assistance

Maximum City assistance is $500,000 and 33.3% of the total project cost

Use of Proceeds

Working Capital for Inventory Purchases

Equity Requirement

Applicant must provide a minimum of 10% equity

Collateral

City to have a subordinate lien position on the Project Site and/or UCC lien on business assets. Other collateral may be deemed necessary.

Interest Rates

75% of WSJ Prime Rate

Loan Terms

Interest only payments for up to twelve (12) months and the loan will be fully amortized for up to seven (7) years for a maximum loan term of ninety-six (96) months