Mascoma Community Development (MCD) has created a $5.5 million Small Business Loan Pool that will allow small businesses in Vermont, New Hampshire and Maine to obtain low-cost, flexible financing. Financing obtained through this loan pool is more advantageous to the borrower than a loan obtained from a bank.
Loan Pool loans can be in amounts that are between $500,000 and $2,000,000.
Financing can be used to fund expenditures that have either recently been incurred by the business or that are expected to be incurred within the next 12 months.
Acceptable used of Loan Pool proceeds include:
- real estate
- working capital
- other capital expenditures
Flexible Loan Terms
A borrower would receive flexible loan terms as compared to traditional bank debt. Sample loan terms that a borrower may receive using this product include:
- Interest Rate as low as 2.5%
- Interest Only Period up to 84 Months
- Possible 84-Month term with no amortization(balloon payment)
- Possible higher than standard loan-to-values
The MCD Small Business Loan Pool is being provided using New Markets Tax Credit (NMTC) subsidy. Because the subsidy is part of a federally regulated program, prospective borrowers must meet certain technical requirements in order to be eligible including, but not limited to, physical location of the business.
Verify eligibility with the physical location of the business using Map My Project
“In accordance with federal law and the U.S. Department of the Treasury policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age or disability.
To file a complaint of discrimination, write to Department of the Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania Ave. NW, Washington D.C., 20220 or call (202) 622-1160.”