Eligibility Requirements

• Revolving loans are available to individual owners, tenants, partnerships or corporations
• Your business must be located in Providence
• You must have applied for and been denied funding by at least 2 conventional lenders
• You must create 1 Full Time Equivalent (FTE) employee for every $35,000 you borrow
• Loan funds can be used for commercial rehabilitation, labor and/or materials, machinery/equipment, property acquisition, and/or working capital
• Loan funds cannot be applied to sweat equity (with the exception of bona fide, licensed owner/contractors performing work on their own properties) or to any expenses incurred prior to the date the loan was approved
• Loans must meet at least one National Community Development objective Community Development Block Grant objective.

Loan Terms

• 0%-6% interest rate
• Loans in excess of $60,000 require a match of $1 privately funded dollar for every Revolving Loan Fund dollar borrowed
• The lease term must be greater than, or equal to, the term of the loan; the loan term cannot exceed 10 years.
• Borrowers must comply with Davis-Bacon wage provisions
• Borrowers must participate in the City's First Source/Providence Connects hiring program

Fees

• Application Fee and Credit Report Fee ($50)
• Loan Origination Fee (1% of loan, due at closing)
• Processing fee ($5.50 per month over term of loan)
• Legal and Filing Fees ($350 plus any Uniform Commercial Code filings)
• Security interest on all assets, personal and corporate guarantees, plus other collateral sufficient to secure loan

Eligibility Requirements

• You must have 5 or fewer Full Time Equivalent (FTE) employees
• You must have previously applied for and been denied funding from at least 2 conventional lenders
• You must be creating or retaining one or more jobs
• If you are a start-up company, you must have received or agree to receive entrepreneurial/business training or mentoring
• Loan funds can only be used for purchase of equipment, materials/inventory and/or working capital; funds cannot be used for renovation or construction.
• Owners of existing businesses must have at least 10% of their personal assets invested as equity in the business.
• Owners of start-ups must have at least 20% of their personal assets invested as equity in the business.

Loan Terms

• Typically, 5-year loans are issued at the Prime (interest) Rate +4%.
• The loan may be tied to the useful life of the asset being financed .
• Borrowers must participate in the City's First Source/Providence Connects hiring program.
• Because these are "secured" loans, collateral will be required in the form of a security interest on the borrower's personal and/or corporate assets.

Fees

• Application Fee and Credit Report Fee ($50)
• Loan Origination Fee (1% of loan, due at closing)
• Legal and Filing Fees ($350 plus the cost of any Uniform Commercial Code filings required)

Eligibility Requirements

• You must be an existing business in Providence being evicted from your current location due to redevelopment, foreclosure, fire, or natural disaster.
• You must move your business to another location in Providence.
• Loan funds can only be used for moving costs, renovation of the new space, materials and/or inventory, and equipment.

Loan Terms

• Businesses that remain in Providence and continue to operate 5 years from the date of the loan: 50% of the loan will be forgiven and the remaining 50% must be repaid in monthly installments beginning in year 6.
• Businesses that are sold or transferred within 5 years of loan issuance: 100% of the loan is due upon sale or transfer. at Prime +1-4%
• Businesses that move out of Providence within 5 years of loan issuance: 100% of loan is due and payable at Prime +5%
• Borrowers must participate in the City's First Source/Providence Connects hiring program
• Because these are "secured" loans, collateral will be required in the form of a security interest on the borrower's personal and/or corporate assets.

Fees

• Application Fee and Credit Report Fee ($50)
• Loan Origination Fee (1% of loan, due at closing)
• Legal and Filing Fees ($350 plus any Uniform Commercial Code filings)

• You can be a property owner or a tenant to apply; owners of vacant buildings are encouraged to apply for the purposes of attracting future tenants.
• Your building must be used primarily for commercial/retail businesses.
• Your renovation plans must be reviewed and approved for consistency with
  design and use guidelines.
• Grant funds will be provided to match your itemized investment in the project. For example, if you have put together a $2,000 budget to cover the cost of new signs and awnings, you can apply for a grant of $1,000 to cover 50% of the expenses
• Grant funds will be disbursed as reimbursement for eligible project expenses. Funds will not be provided in advance.
• Grantees must participate in the City's First Source/Providence Connects hiring program