NewCorp and the City of New Orleans partner to administer the Small Business Assistance Fund Program
- Friday, 14 September 2012
The Small Business Assistance Fund (SBAF) is a new financing program created in partnership with the City of New Orleans and NewCorp, Inc. (NewCorp), to support the growth of new and existing businesses. By providing access to capital, SBAF will encourage small business inclusion and job creation.
This $2 million fund provides 8% interest rate loans to for-profit and not-for-profit businesses for operating capital and equipment purchases. SBAF loans will range from $10,000 to $100,000. The maximum length of the term loan is up to 84 months and will depend on the financing need/use of funds of the borrower.
SBAF is partially funded by the City of New Orleans Economic Development Fund.
Applicants must complete the SBAF application. NewCorp will review each application to determine if the proposed project meets the eligibility criteria:
- For Profit or Not-for-Profit business (income generating only)
- Located in the City of New Orleans
- Demonstrate inability to access capital from traditional lending sources
- Demonstrate financial and economic viability (based on financial history or business plans)
- Provide living-wage employment and ownership opportunities to low-to-moderate income communities
LOAN UNDERWRITING REQUIREMENTS
NewCorp will evaluate eligible applicants to determine business viability and if applicants meet the minimum standard underwriting criteria:
- Project meets general program eligibility criteria
- Beacon credit score > 550 for all principal and guarantors
- Business debt coverage ratio of 1.10-to-1.00
- Personal debt coverage ratio of maximum 50%
- Personal guarantee, where applicable
- No prior history of bankruptcy at any time with the business nor recent bankruptcy (within the last seven years) for the principal
HOW TO APPLY
To find out if you are eligible for the SBAF, download the application from www.newcorpinc.com.
Complete the eligibility application and submit your form with attachments by e-mail, fax or mail to:
2924 St. Bernard Avenue
New Orleans, LA 70119
(Office hours M-F: 9:00 am-4:00 pm)
Have questions about the application process?