NewCorp and the City of New Orleans partner to administer the Small Business Assistance Fund Program

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.

PROGRAM ELIGIBILITY

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



KEY DATES

 

Application Period Begins

May 1, 2013

Application Deadline

June 14, 2013

Program Eligibility Notification

June 30, 2013

Due Diligence/Interview Period

July 1 - 30, 2013

Final Loan Commitment Letters August 15, 2013

Loan Closings

August 30, 2013




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:

NewCorp, Inc.
2924 St. Bernard Avenue
New Orleans, LA 70119
FAX: 504.208.1697
EMAIL: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
(Office hours M-F: 9:00 am-4:00 pm)

Have questions about the application process?

Call 504.208.1700 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it for assistance.


Last Updated on Tuesday, 30 April 2013 20:57