The Cumberland County Loan Assistance Corporation (CCLAC) has transferred ownership and management of this loan program to Cooperative Business Assistance Corporation.

This loan fund continues to be targeted to Cumberland County small, minority-owned and women-owned businesses to help them start and expand in the County when a traditional bank loan may not be available or in partnership with a bank. This program was developed by and supported with the cooperation and support of the

• Cumberland County Board of Freeholders
• Cumberland County Department of Planning and Development
• Cumberland Development Corp.
• Cities of Bridgeton, Millville and Vineland
• U.S. Dept. of Agriculture - Rural Development
• Cooperative Business Assistance Corp.

Goals of the Program

• Job creation and job retention for businesses in Cumberland County and for the residents of Cumberland County, particularly low and moderate income residents.
• Establishment of new small businesses and expansion of existing small businesses.
• Development and redevelopment of commercial and industrial buildings and land.

• Provide financing for businesses that are unable to obtain traditional funding because of insufficient collateral or inability to meet other normal traditional loan criteria or for start up or expanding small businesses.

Loan Amounts:

• Up to $100,000* for loans provided by CCLAC and the consortium of lenders.

• Up to $70,000* for loans provided by one lead lender and CCLAC.

*Maximum loans amounts may be lower depending on availability of and demand for funds.

Loan Purposes:

• Equipment or Inventory
• Working capital
• Leasehold improvements
• Purchase and renovation of owner-occupied commercial or industrial real estate
• Refinance of existing loans is generally not permitted under this program.
• Construction financing is not permitted but CCLAC may participate in permanent mortgages for qualified properties.

Interest Rates:

The blended interest rate for loans provided by CCLAC and its partners will be fixed for five years generally at market or below market.

Term of Loans:

• Most loans will require repayment over 5 years. Repayment may be extended to a maximum of 15 years under certain circumstances but the interest rate will be adjusted every five years.

• Applicants must demonstrate through past record and/or a well-documented business plan and financial projections, the ability to repay the loan.

• Applicants should have a good personal and/or business credit history but having some negative credit will not necessarily disqualify an applicant.

• Applicants and/or their partners must have some business management experience or experience in a similar type of business or have taken training to strengthen these skills.

• Generally, a written business plan is required, in order to qualify for loans under this program. This plan must be provide sufficient information in order to support the loan request as determined by the lender.

• Eligible businesses must put forth their best efforts to supply employment opportunities to low and moderate income residents of Cumberland County.

• Generally, a minimum investment by the borrower of 10% of the project cost will be required. Higher percentages of owner investment may be required in order to maximize leveraging of CCLAC and private funds.

• At least one (1) job must be created or preserved by each project. For projects that require more than $35,000 of CCLAC Countywide loan fund financing, a ratio of one (1) job must be created or preserved per $35,000 of loan funds provided.

• Projects that generally could not proceed under regular banking criteria "but for" the participation of CCLAC.

• The program may fund otherwise bankable requests that result in investment in brown field sites, areas in need of redevelopment or development, projects that address some other important public policy issues or where funding serves as an incentive to encourage new business or expanded business in the County.

Information and Assistance

Cumberland Development Corporation

Tony Stanzione, Executive Director

856-451-4200

fax: 856-453-9795

email: cdc@cdcnj.com

 

Cooperative Business Assistance Corporation

Harry Stone, Senior Lender

856-966-8181

fax: 856--966-0036

email: info@cbaclenders.com

web: www.cbaclenders.com