The PEDP provides loans to businesses that create or retain jobs in the City of Providence or provide a service that is not currently offered in the neighborhood. For every $35,000 invested in your business, the PEDP requires that one job be produced. This is a citywide loan program that can be used to expand your business by purchasing equipment, constructing or rehabilitating your space, or providing you with working capital.

For every $35,000 invested in your business, the PEDP requires that one job be produced. Additionally, projects that relate to the sale of alcoholic beverages or are exclusively a real estate transaction must provide a substantial public benefit to the City or a neighborhood in order to qualify for a PEDP loan.

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If you have been rejected for a business loan by two banks, you are eligible to participate in this program. If you have not been rejected by two banks and are eligible for a bank loan, we will connect you to one of our banking partners.

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The types of expenses that will be eligible for payment through your loan depend on the nature of your business. Eligible expenses will be clearly specified as part of your loan approval.

The following expenses are not eligible for payment under any circumstances:

• Expenses incurred prior to the approval date of the loan.
• Expenses such as cell phones, personal items, or rent to a realty holding company you own or may be a partner in.
• Existing debt.

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First you need to complete our Pre-Application Form in its entirety and submit along with a basic business plan.  A credit check on you and any co-applicant(s) will also be required as a part of the pre-application process. Minimum credit scores of 650 or higher are generally necessary to qualify for PEDP loan products.

This pre-application process will determine whether you are a qualified candidate for a PEDP loan, after which you will be asked to provide the following documentation for your loan application package:

• A description of your business and its history
• A description of your project and the job(s) it will produce
• Business/personal tax returns for the previous three years
• A balance sheet and income/expense report for the previous three years
• A profit/loss projection for the next five years
• Description of the collateral you will use to secure your loan
• A tax bill receipt showing that your business and real estate taxes are paid and current

The documents listed above are necessary to complete your loan application and to help identify the loan product best suited for you.  In addition, all projects will be reviewed for zoning compliance.

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You may be asked to provide deeds or leases as necessary. You may also be asked for a personal financial statement, tax bills, and relevant photographs. Every application and project is unique, so the requirements will vary. You will be provided with a list of the documentation required for your application process at the time you are notified that you are a qualified candidate for a PEDP loan.

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Properly completed Pre-Application submissions will be reviewed within ten days. Upon successful completion of the review, you will be contacted to begin the next step in the process, which includes preparing your loan application and compiling the necessary documentation for your loan application package. At this time, you may also be provided with professional assistance in preparing your business plan or financial documents.

Because the funds used for the PEDP loan pool are from the federal government, all loans must be secured by one of the following:

• A lien on real property (a house, commercial building, or equipment) that has a value that is sufficient to cover the amount of the loan
• A security interest in machinery and equipment, accounts receivable, or inventory that has sufficient value to cover the amount of the loan

No! Because our loans are made with federal funds, there are limitations on how those funds can be applied and disbursed. Your loan funds can only be used to pay for or reimburse for the specific expenses approved by the PEDP for your loan.

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The following are basic steps required to begin accessing loan funds:

• Obtain a Dun & Bradstreet Number from www.d&b.com
• Submit a Requisition Form. Your loan funds may be used to reimburse your business for eligible expenses that you have incurred from the date your loan was approved. Expenses incurred prior to that date are not eligible for payment/reimbursement. To request reimbursement, submit a completed Requisition Form along with invoices, cancelled checks and any other documentation of the eligible expenses that have been paid. Alternatively, you can submit an unpaid bill for eligible expenses with the completed Requisition Form in order for the bill to be paid directly.
• Once we have received a properly completed Requisition Form, we will process your payment. For non-construction requisitions, a check is typically issued within seven days of receiving a properly completed Requisition Form. If your Requisition Form is incomplete or lacks proper documentation, we will contact you for more information. When an unpaid bill is being paid through your loan, the check will be issued to two parties—your organization and the company that is being paid. This requires your endorsement of the check before passing along to the company this is being paid.
• Payment requisitions for construction projects take additional time as the work must be inspected by the PEDP staff before a check can be issued. The inspection is required to ensure that the work is complete and that the workers involved in the project were paid proper wages. Checks for construction projects are generally issued within 15 days of submission of your requisition and a satisfactory PEDP inspection.

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After your loan has closed, your PEDP business liaison will visit your business periodically to verify your new or retained employees.

You will start receiving monthly bills six months after the loan has closed or when it has been fully disbursed, whichever comes first. Payments are due by the 1st of each month. Penalties for late payments will be charged on the next month’s statement. Please note that even if you do not receive a bill, you are still responsible for making your payments on time. If you do not receive a bill, call 351-4300 x612 and another copy will be sent to you.

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Your monthly payments are calculated based on the entire loan amount and applicable interest rate. The amount of loan funds that have been disbursed has no bearing on monthly payments, which are determined at the time of your loan application.

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You can pay online as you would any other bill, using your bank's online bill-payment tool.

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Penalties for late payments will be charged on your next statement. If you have not made your monthly payment, that payment, as well as the related late penalties, will be reflected on the next statement. If, after 90 days, you fail to bring your loan current, your account will be turned over to a collection agent.

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If you are having trouble making payments, contact Amintha Cinotti or Kathy Cosentino to discuss modifying the payment schedule for your loan. If you do not make contact with the PEDP to discuss modifying your payment schedule and you stop making payments, after 90 days, your account will be turned over to a collection agent.

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You can use our Interactive Enterprise Zone Map to identify whether your property is located in a Providence Enterprise Zone and the name of the Zone.

If your property is located near the edge of the zone, or if you need a census tract number, please contact Kathy Cosentino, the Providence Enterprise Zone Coordinator.

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Visit the Tax Incentives section of this website for information about Enterprise Zones in Providence.

The Rhode Island Economic Development Corporation (RIEDC) website also offers the annual application as a download, along with more information on the Enterprise Zone program.

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Send your original, signed. and notarized application to:

Kathy A. Cosentino,
Providence Enterprise Zone Coordinator
Providence Department of Planning and Development
400 Westminster Street
Providence, Rhode Island 02903

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Businesses located in RI Enterprise Zones that hire residents of Providence Enterprise Zones may be eligible for incentives. Use the interactive Enterprise Zone map to determine whether an employee resides in a Providence Enterprise Zone. Or, contact Kathy Cosentino, the Providence Enterprise Zone Coordinator.

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As part of the year-end certification for the Enterprise Zone Program, you need to provide Certificates of Good Standing from the following sources:

• The RI Division of Taxation
• The RI Secretary of State's Office
• The local Enterprise Zone municipality

For the City of Providence, Certificates of Good Standing are processed by the Collector's Office located in Providence City Hall.

Please contact Carolina Grullon in the Collector's Office at cgrullon@providenceri.com, via telephone at (401) 331-5252 x661 or via fax at (401) 454-8247.

You’ll need to provide your company name or your City of Providence Tax Account Number in order to have a Certificate processed.

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Earned but unused tax credits may be carried forward for up to 3 years.

Beginning January 1, 2011, only businesses whose corporate entities are C-corporations will be eligible for the Enterprise Zone tax credits. Any current member business that is not a C-corporation that has earned or carried forward any tax credits through calendar year 2010 will only be able to use those credits as of the tax return filing for 2010. Any earned but unused credits will be lost.

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Companies located in designated Enterprise Zones may be eligible for a tax credit every year that their full-time employment levels increase 5% or more over the previous year.

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No, however, you do need to complete the annual certification package to earn tax credits or to continue your membership in the program.

Beginning January 1, 2011, only businesses whose corporate entities are C-corporations will be eligible for the Enterprise Zone tax credits. Any current member business that is not a C-corporation will not be eligible to continue in the program.

I am an existing Enterprise Zone company that has completed its year-end certification documentation. Where do I send it?

Send your year-end certification documents to:

Victor Barros, Urban Development Manager
RIEDC
315 Iron Horse Way, Suite 101
Providence, Rhode Island, 02903

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