| Program Details
· Access point for this program: Certified Economic Development Organization (CEDO) for county where business is located (Find it here)
· Eligible Businesses: Any for-profit businesses located in PA and with 100 or fewer employees worldwide may qualify for disaster relief loans. Your application must be processed through the CEDO designated for the county where your business is physically located.
· Loan Amount: The lesser of 3 months of working capital not to exceed a loan amount of $100,000
· Interest Rate: 0% for all business types except Agriculture Producers
· Amortization: 12 years
· Term: 3 years
· Repayment: No payment in first 12 months, amortized payments monthly for the following 24 months, one balloon payment for the remaining balance in the 37th month
· Collateral: Blanket lien on all current business assets and any acquired in the future in first available lien position
· Guarantors: All owners (individual or other business entities) owning 20% or more of applicant business must guarantee the loan. Some credit criteria for approval (as evaluated by PIDA) may include:
o At least breakeven performance in the prior year
o Acceptable personal credit history of the guarantors
o Historical cash flow adequate to pay obligations
Items needed for your application:
· For the intended Borrower (Applicant Company, an Operating Company):
o Company Profile Sheet
o Signed W-9
o Signed Business Entity Certification
o Most recent year financials (accountant prepared or filed tax return)
o Interim Financials (income statement at least) prepared by management from last full year statements (see bullet above) through current
o Debt Schedule
· For the Guarantors (any owner, individual or business entity, with 20% or more interest in Borrower):
o Signed Certification Sheet (Individuals) (Business Entities)
o For individuals: A signed and dated Personal Financial Statement (Click Here for blank form) or provide what you have already prepared dated within last 12 months
o For business entities: Most recent year of financial statements |
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