Small Business Development Loan Program

Purpose of the Program

The purpose of the Small Business Development Loan Program (SBDLP) is to provide loans and technical assistance to new and emerging Washington County, Indiana businesses while facilitating development and creating or retaining employment possibilities within the community.

Loan Criteria

The decision to approve a loan will be based in large part on the ability of the business to demonstrate that a loan is necessary, that it will have a positive impact on employment, that the business can repay the loan, and that it has proof of sufficient collateral.

Who can borrow?

A loan can be made to a new or existing business located in the boundaries of Washington County, Indiana.  Loans will be available to applicants meeting the definition of "small and emerging private business enterprises" defined as "any private business that will employ 50 or fewer new employees and has less than $1 million in projected gross revenues."  At least 51 percent of the outstanding interest in the applicant must be owned by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence.

How much can be borrowed? 

The minimum loan amount is $2,000.  The maximum loan amount is $50,000.  Exceptions to these caps will be considered on a case by case basis by loan committee.

For how long can funds be borrowed?

Loan term will be based on the planned use of funds and the useful life of assets to be acquired, primarily the lesser of seven years or the life of the security.

How can funds be used?

Funds may be borrowed to finance working capital (inventory, receivables, operating capital), and equipment.

What is the interest rate?

Interest rates will be between 0-10%.  Repayments will be made monthly. Payment deferrals will be available for up to 6 months. 

Number of jobs to be created/retained with each project?

The grantee has a goal of creating or retaining at least one full time job to be eligible for up to $10,000 in loan funds from the SBDLP (or $10,000 per job retained or created).

Is technical assistance available?

Yes, WCEGP arranged for several levels of technical assistance geared to the needs of potential borrowers.  New businesses will be expected to participate in a business plan development program and to utilize available resources of the SBDC concerning tax issues, bookkeeping, and marketing.  The area SBDC can provide one-on-one technical assistance to help borrowers with specific challenges they may face in operating their businesses.